[SLJB]: How scam companies do it

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1. First, you have the scam company arrange for a visit by two message board posters that have been promoting the stock.

2. The message board posters come back with glowing remarks of the company, including pictures of the company buildings and signs.

3. The message board posters also claim that they have been shown the minute book of the company.

4. The message board posters then begin making false and misleading statements about the company, such as:

---a. all previous press releases about closed cement deals were truthful and correct,

---b. the company has been profitable for 25 consecutive years.

---c. the company has no debt.

---d. the previously issued unaudited historical financial statements of the company were all legitimate.

5. Stockholders and potential investors believe the two promoters that made the false and misleading statements, since, after all, they just came back from visiting the company and this is what the company told them.

6. The stock price of the company climbs significantly.

7. The company fails to issue public statements correcting the fraudulent false and misleading statements made by the two promoters.

8. When questioned by the RCMP/FBI about the fraudulent false and misleading statements made by the two promoters, the company will simply say that they never told the two promoters the particular information and that they don't know anything about it.

9. When questioned by the RCMP/FBI about the fraudulent false and misleading statements, the two promoters will simply say that they might have misunderstood what the company told them.

10. When the details of the fraudulent false and misleading statements come out, the stock price of the company plummets by over 90%. Too late for "believers", but no problem for the people that sold during the "run-up".

11. Voila, how scam companies do it.





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