Exposing Convicted Penny Stock Manipulator Jonathan Lebed Of The National Inflation Association’s Latest Pump & Dump

Watch these 7 free video lessons I just created to learn more about how to profit off pump and dumps like this

UPDATE: I covered my BVSN short for a $5,000+ profit yesterday as I explain HERE…it might be a pump and dump, but it’s got power you have to respect and I look forward to reshorting soon!

The NIA, or National Inflation Association, is a serious-sounding politically charged cover for an often-sued and convicted penny stock manipulator named Jonathan Lebed who I’ve featured HERE and HERE and whose penny stock picking newsletter is one of the worst rated financial products out of 10,000+ on Investimonials (mainly since all his picks crash and whose subscribers sometimes lose everything (ironically which he disclaims at the bottom of all his newsletters…you can’t say he didn’t warn you…and which is why I love shorting his pump and dumps!)

He has been exposed as a penny stock scammer by The New York Times and also exposed was his nearly 1/3 of a million dollar settlement with the SEC over his penny stock scam.

But most in politics don’t do their research – as evidenced by our country’s current state – and NIA members don’t realize their president is convicted penny stock manipulator Jonathan Lebed and his partner is Gerard Adams of Wall Street Grand, who is also penny stock promoter with some nasty “conflict of interest”passages in their disclaimer with whom Lebed often does pump and dump deals, as exposed in this blog post I wrote about that BS snake venom painkiller stock Nutra Pharma Corp. (NPHC) whose chart you can see below (guess where they promoted this stock and when subscribers of my 4 newsletters bet against the pump and dump, profiting tens of thousands of dollars)

Snake Venom Painkiller Penny Stock Pump & Dump

Some people like Peter Schiff have already accused the NIA, Lebed and Adams of fraud and penny stock pumping and dumping, but the NIA’s email list is large and their rumored offshore hedge fund partner well funded and they keep pumping and dumping because it’s just so profitable for them…and the SEC hasn’t caught on yet.

As a short seller who exposes pump and dumps, I have a habit of predicting SEC halts and investigations, as there have been times where I’ve predicted multiple SEC trading halts in just a few weeks of each other.

Now let me expose Jonathan Lebed’s pump and dump of BroadVision, Inc. (BVSN), on which the NIA, Gerard Adams and the rumored offshore hedge funds with whom they’re working are set to profit over $2 million, if not more, as they have successfully manipulated their readers into buying one of the worst companies I’ve ever researched, tripling the stock price as a direct result of their comparing this money-losing technology company whose revenues have dropped 20%+ each of the past few years to fast-growing companies Facebook, Lithium, NewsGator and Jive Software Inc (JIVE)

The January 2012 Jonathan Lebed Pump & Dump

Yes, in the single most exaggerated promotional email campaign since penny stock pump & dump CrowdGather Inc (CRWG) compared themselves to Google and Twitter (see how CRWG has fared since I exposed that pump and dump, down 99%…see a trend yet?)

Sanjay Sabnani's Penny Stock Pump & Dump

The NIA’s emails on BroadVision, Inc. (BVSN), written by convicted penny stock manipulator Jonathan Lebed, are the only reason why the stock has surged from $8.20 on December 9th, 2011 all the way up to touching $24 today, giving the company a market value of $98 million up from just $37 million one month ago.

Usually companies with large stock price moves and no new news issue statements denying knowledge of why their stock has moved so much for fear of the regulators, but either BVSN is not afraid of any investigation or they do have knowledge of Lebed’s acitivites and don’t want to admit it.

You may be asking why should Jonathan Lebed manipulate a stock higher after being busted for penny stock manipulation by the SEC in the past?

Well, duh to make $$$$$$$$$.

As he denotes on his website:

…the person who told me to look at BVSN is a shareholder of BVSN who has referred me investor relations business in the past and will likely continue to refer me investor relations business in the future. Another firm that is owned by a client of mine who refers investor relations business to me owns 151,900 shares of BVSN that it purchased in the open market. This is a potential conflict of interest. BVSN’s share price could decline when this firm decides to sell their BVSN shares.

The official NIA disclaimer is slightly different, the obvious guess being that the shares are in NIA partner Gerard Adams’ name since we know he has referred Lebed pump and dump business in the past:

Disclaimer: NIA owns 151,900 shares of BVSN that it purchased at an average price of $9.2639 per share. NIA agreed to a 60 day holding period on its initial position of 122,000 shares starting from the date that NIA first suggested the company, but NIA intends to sell these 122,000 shares at some point in the future after the date of February 12th, 2012. NIA intends to sell its additional 29,900 shares of BVSN in the future and can sell them at any time. NIA’s co-founders have also been referred business in the past from somebody who has filed as a large BVSN shareholder.

So Lebed’s partner and his partner’s partners are up huuuuge on their BVSN pump, but let’s see exactly how much impact they’ve had on this stock. It couldn’t be THAT much, right?

Wrong.

Compare the trading volume and price action on BVSN before December 12, 2011 and after when this convicted stock manipulator began sending out promotional emails pumping this stock up.

A Penny Stock Popular Out Of The Blue!

Notice any difference before and after the promotional emails started?

The difference is night and day; before Lebed and friends began manipulating the stock higher, BVSN was an illiquid penny stock that barely budged…now its tripled on HUGE volume with no major new news whatsoever.

See this convicted penny stock manipulator’s last penny stock pump and dump Ocean Power Technologies, Inc. (OPTT) which he also hyped up the company’s cash position and ignored their negative growth…on that one, like BVSN, he pumped the stock up enough to squeeze short sellers and create buyins, but within a few weeks, it’d fallen ALL the way back to its pre-pump levels of $2.50 down from a manipulated high of $5.50…and subscribers of my 4 newsletters BANKED nearly $50,000 shorting that pump.

Jonathan Lebed's Last Penny Stock Pump & Dump

I could write a book exposing thousands of Jonathan Lebed’s lies, but here are some the most blatant over the past few promotional emails and why I am short over 10,000 shares of BVSN at $21.25ish and will short more if the pump continues as shares are easy to borrow with this great penny stock broker (not to mention Fidelity & Lightspeed too) because its price has tripled as a consequence of Jonathan Lebed’s lies…last time he settled with the SEC for roughly 1/3 of a million dollars, but now he’s honed his pump and dump skills so my guess is he will owe the SEC millions, if not tens of millions if anyone from the SEC bothered fact-checking this penny stock manipulator’s emails.

These are in no specific order:

1. Convicted penny stock manipulator claim:

In NIA’s opinion, based on the extensive research we did in recent weeks about NewsGator, we believe that the company currently deserves a valuation of $300-$400 million in the event of an IPO or buyout. However, we believe they have a product that is inferior to BVSN’s Clearvale and we are very confident that BVSN will gain a much larger market share of the enterprise social industry this decade.
The reason BVSN is a much better company is simple. BVSN has spent an enormous amount of money on research and development related to Clearvale over the last few years.

Sorry Mr. Convicted Penny Stock Manipulator Jonathan Lebed/NIA president, once again you have fudged as Newsgator has 3 year revenue growth of 286%, $4 to $16 million in revenues, which is 50%+/year growth. Compare that to BVSN’s latest SEC filing where they explain in detail how revenues have dropped 20% each of the past few quarters AND years.

Would you like to see BVSN’s declining revenue in graphical form? Sure, check out this hideous Yahoo! Finance income statement page showing revenue declines of 20%+:

Broadvision's Annual Problems

Here’s the even uglier quarterly statements for BVSN where you can see every quarter BVSN manages to lose more money on lower revenues, NOTHING is heading in the right direction:

Broadvision's Quarterly Problems

…the only positive on BVSN/ClearVale is the way its been pumped due to its low float by convicted penny stock manipulator Jonathan Lebed, nothing to do witht he company’s abysmal performance.

Spending money on research and development does not equate to company growth or revenue growth and certainly not profits as evidenced by BVSN’s declines in everything, wasting away ever so gradually.

2. Convicted penny stock manipulator claim:

NIA is now more certain than ever that major institutions are beginning to accumulate BVSN.

This is a lie as evidenced by this Yahoo! Finance page that clearly denotes institutions are selling BVSN. Jonathan Lebed doesn’t think his readers are smart enough his double-check his “facts” and so far he’s been right.

3. Convicted penny stock manipulator claim:

BVSN has $56.79 million in cash and no debt, giving the company an enterprise value of only $21.55 million.

This is a lie, apparently the NIA’s president, Jonathan Lebed, who is an SEC convicted stock manipulator, got his math wrong as you can clearly see in BVSN’s latest SEC filing they only have $37 million, not $56+ million in cash

Broadvision Cash Of $37 Million

I can’t help but wonder if Jonathan Lebed will use this same erroneous math when the SEC comes calling again for another inevitable penny stock scamming settlement…imagine the conversation: “Jonathan: I only made $2 million in illicit profits)” “The SEC: Uhhhh Jonathan, you forgot to put a 1 in front of the 2, the accurate figure is $12 million. You sneaky little penny stock manipulator”

4. Convicted penny stock manipulator claim:

It is insane that Clearvale is receiving a value of only $6.55 million when BVSN’s competitor JIVE is receiving a valuation for their platform of $668.46 million, which is 102 times higher! BVSN’s management has done nothing to promote its stock because they are focused on rapidly improving Clearvale by constantly adding new features so that BVSN stays a step ahead of the competition.

Jonathan Lebed, the president of NIA and an SEC convicted penny stock manipulator’s mclaim on BVSN is that their software Clearvale is comparable to JIVE, one of the FASTEST-growing companies in the same sector. This is a lie. BVSN and Clearvale are NOT growing at all, as evidenced by their 20%+ declining annual and quarterly revenues whereas JIVE is FAST-growing as its products are in demand. I’d be surprised if ClearVale is worth anything given their declining revenues and weak customer list as you’ll see below.

When JIVE filed for its IPO in 2011, Techcrunch summarized “For the years ended December 31, 2008, 2009 and 2010, and for the six months ended June 30, 2011, Jive’s total revenues were $16.9 million, $30.0 million, $46.3 million and $34.0 million, respectively.” and a followup article later in the year said JIVE’s revenues “totaled $54.8 million through the first nine months of the year — but it’s growing fast. Jive’s revenues were up 73 percent through the first three quarters of 2011.”

So JIVE is growing at 70%+/year and doing $70 million in sales, BVSN’s Clearvale has no growth whatsoever, is actually losing revenues and perhaps does a few millions/year in sales at best, but BVSN hasn’t broken it down in the last SEC filing meaning it’s not doing well at all.

5. Convicted penny stock manipulator claim:

Clearvale has just about all of the features JIVE has plus some additional unique features that make us like Clearvale better. With BVSN’s other competitor Lithium now being valued on the private market for about $500 million, we will be surprised if Clearvale doesn’t very quickly receive a valuation of at least $100 million

For shame Jonathan Lebed, not only are you a convicted penny stock manipulator, you’re a terrible liar. Lithium has been growing at 80%+/year since 2009 and now they just raised $53 million to achieve this $500 million valuation.

Apparently, only convicted stock manipulators compare the hottest/fastest growing companies in the world like JIVE and Lithium and value them similarly to companies that can’t even maintain last year’s revenues like BVSN/Clearvale….notice how Lebed talks about features…well, customers vote with their dollars so BVSN’s ClearVale’s features must not be that great after all.

6. Convicted penny stock manipulator claim:

As we approach the Facebook IPO, every smart investor in the world will start searching the market for other social networking stocks. They will most likely discover JIVE and BVSN as the only two pure plays in the enterprise social networking space.

Actually according to the graph below, there are 5 public companies in this specific sector, all growing tremendously fast…except BVSN/ClearVale…and there are 40+ companies in this niche, again ALL growing faster than BVSN:

Steep Competition

Just to make sure you understand how much Jonathan Lebed and friends are lying about BVSN’s growth and potential, this article shows all 5 sector leaders, including Jive and Lithium, but surprise, surprise, Cealrvale/BVSN is not listed.

7. Convicted penny stock manipulator claim:

Wealthy American and international investors who are interested in investing into Facebook will likely soon find out about BVSN and how it has positioned itself as a leader of the enterprise social space, which is going to grow many times faster this decade than the consumer social space.

Yup, this hot space will continue growing and the companies growing 50-80%/year will continue while there is no reason to believe BVSN won’t continue dropping 20%/year in revenues as they have every year in the past few years…inevitably running out money within a few years like so many internet companies WITH NO GROWTH WHATSOEVER.

8. Convicted penny stock manipulator claim:

NIA believes that BVSN is positioned similarly to where Facebook was four years ago.

They should bring back tar and feathering for convicted penny stock manipulator Jonathan Lebed for this bold-faced lie. As popularized by the movie The Social Network & detailed in great books The Facebook Effect and The Accidental Billionaires, Facebook NEVER had stagnant revenue growth let alone 20% annual declines like BVSN/Clearvale.

9. Convicted penny stock manipulator claim:

BVSN is positioned to not just lead this space in the U.S., but to lead all around the world. BVSN has a stunning international presence unlike any other pure play in this space.

Offices around the world do not make a company, it comes down to who your customers are and how badly they want and need your product now and in the future. We already know these other companies convicted penny stock manipulator Jonathan Lebed mentions are growing fast whereas BVSN’s sales are dropping 20%/year, but looking at BVSN’s ClearVale’s customer list on this page there is NOT ONE recognizable company.

Compare that to Jive’s customers listed here and you see many Fortune 500 and 100 companies like Nike, Yum Brands, Charles Schwab, Avon, Prudential, etc and Lithium’s customers are impressive too including HP, Best Buy, Research In Motion, Sony, Comcast, Symantec, and AT&T.

Why, if the NIA, whose president is an SEC convicted stock manipulator, is to be believed is BVSN’s revenues dropping 20%+/year when all the competitors mentioned are growing at 50-80%+/year?

Why did the NIA, whose president is an SEC convicted stock manipulator, lie about BVSN’s cash position?

Why did the NIA, whose president is an SEC convicted stock manipulator, never once mention BVSN’s growth rate?

Why is this pick of the NIA, whose president is an SEC convicted stock manipulator, lacking in having ANY large company customers?

The answer to all these questions is that convicted penny stock manipulator/NIA president Jonathan Lebed has meticulously constructed a pump and dump on BVSN, squeezing early short sellers and telling lies to entice investors into buying the stock his friends and business partners own, reaping monetary rewards in the million of dollars.

I look forward to further emails with blatant lies from the NIA, whose president is an SEC convicted stock manipulator, as without convicted penny stock manipulators like Jonathan Lebed, such ideal short selling opportunities would not exist.

To the NIA, whose president is an SEC convicted stock manipulator, I thank you for your lies and wish you luck in the judicial system.

Posted in Basics, Penny Stock Scandals, Short Selling Penny Stocks, Short Squeezes, Videos

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  • Artillery105

    Awesome research Timmy, this stock is a house of cards….get out while you can Lebed!!!

  • AGORACOM George

    Tim, kudos to you on such incredible research. There are few people in this space that impress me … But you never disappoint

    Regards,
    George

  • http://profile.yahoo.com/QJK7RBYOIWWIJLYSFOO7RWIZUM u

    Tim, one question. NIA’s disclaimer states that they have agreed not to sell the bulk of their shares until after 2/12/12. Is this another lie?

  • Yngvai

    u, I would guess that if they aren’t telling the truth about BVSN, then they aren’t telling the truth there, either.

  • http://tradinggoddess.com Anonymous

    Tim,

    I am very impressed with your research and findings regarding Lebed. When I brought him to your attention many, many months ago, I had no idea you would do such a terrific job of uncovering the awful truth about him!

    Many kudos and Good Karma to you my friend!

    T.G.

  • http://www.timothysykes.com Anonymous

    thanks bud!

  • http://www.timothysykes.com Anonymous

    thanks man, yes i do believe BVSN will fall hard…just like every other Lebed pump since the beginning of his miserable life…hence my short :)

  • http://www.timothysykes.com Anonymous

    I’d guess they’ll hold that core position, but the rumors are they work with hedge funds and others whose positions aren’t reported, so they as a group could be long 500,000 shares or more…this is a GIANT pump and dump

  • http://www.timothysykes.com Anonymous

    Thanks, but you didn’t “bring him to my attention”, I’ve been shorting his pumps for years, since you and I were both wee little babies

  • Guest

    Aswome Post! Very Interesting and Detailed.

  • Peter Schiff

    The biggest fraud is NIA’s failure to disclose the holdings of affiliated parties, such as Lebed or Adams.  NIA claim that it has not been paid to promote the stocks they tout, but never disclose whether any related parties have been paid.  The reason the con works so well is NIA members believe the NIA is a nonprofit organization out to help its members.   They have no idea it is a stock promotional business organized to steal their money.

  • Anthony

    Tim,

    Thanks for the great info.  Why isn’t this guy in jail, isn’t this fraud?

    Anthony

  • http://twitter.com/ButchBrock Butch Brock

    Tim, This is exactly why I feel so fortunate to have a teacher like you.  Your time and effort to research shows that you are for real and your looking out not only for your students, but also for the general public if they want to see the truth about these pumps. Thanks again for another great post/lesson.

  • http://twitter.com/tbohen Timothy C. Bohen

    Dah the NIA is Lebed!?!? I literally watch that “College Conspiracy” video they did like two days ago. I thought it was pretty good, of course until the end where they just try and bilk you into buying their newsletter.

  • Blain R

    YOU THE MAN TIM, the SEC should start hiring you and paying you for your research!

  • Avery Uslaner

    Nice

  • Benn636

    lebeds newsletter is no different to any other penny stock newsletter out there,they all pump n dump there stocks,think about it if guys like this were in jail there would be fewer newsletters to make money off.

  • iamsamiam

    This is all nice great research. But the fact remains that this stock rewards the longs in the meantime. And many got creamed trying to short this sucker. The stock can reach 30 before it reaches 8.

  • http://profile.yahoo.com/QJK7RBYOIWWIJLYSFOO7RWIZUM u

    Yet it just keeps going up! This thing is so technically off the charts overbought…how much longer can it be propped up like this?

  • Guest

    did anyone notice the price of the stock back in Feb 2000!??

    Tim, bro you missed the monster of pump and dumps, the mother of pump and dumps thats makes this look like pocket change…

    Price of stock peaking in Feb 2000… 18927.00!!!

  • Baumer

    I am thinking of shorting this as well but probably would wait a bit. NIA bought another 36,000 shares yesterday according to their news letter. They can sell those shares at any time and have a 60 day restriction on their original share purchase. The thing is they are quickly gathering an equal amount of non restricted shares as restricted shares. It looks like they are pumping it up more with their own money and probably plan on starting to exit the stock in the next week or two. It is an enticing short but I am hesitant of jumping in front of this train just yet. Probably in a week or so before BVSN’s conference call. Hard to tell though since like you said NIA works along with highly leveraged partners. Thanks for exposing this.

  • Phdpete

    Thank you for the very valuable research. I get Ledbed’s emails every so many days and have thought about a couple because they sound so good. Thank you for exposing Ledbed as a pump and dumper. I almost jumped for the BVSN hype but I did some homework and it all sounded too good compared to what I could find.  BVSN is still moving as of this comment: up 22.67% today alone to $29.65.  A parabolic rise will have to fall but I’m not stepping in front of this one.  If it had options I’d risk a put. 

  • michael

    lol

  • Jerheuban

    Where are you getting a borrow?

  • http://tradinggoddess.com Anonymous

    hmmm… Well, I suppose as you get a gazillion emails a day, you may have forgotten the 2 that I sent you (and that you responded to) over 2 years ago. No worries – just glad Lebed is being taken to task.

    btw, I have a 26 year old son, so I am definitely sure you and I were not babies together. ;)

    Keep up the good work!

    T.G.

  • Pooswald

    You got it shoved on you today.  Don’t forget about the 12 bucks a share in cash.  Clearvale is a real product and you spend more time discrediting the analyst and not enough on the company.. blind squirrels find nuts.. This guy found a tree…

  • http://profile.yahoo.com/QJK7RBYOIWWIJLYSFOO7RWIZUM u

    Baumer, BVSN’s cc is slated for Thursday, 30 mins. after the close. 

  • http://www.timothysykes.com Anonymous

    i got it shoved to me when i made $5,000+ shorting BVSN? uhhhhh nope…you’re just mad you don’t subscribe to my realtime alerts so you didnt know I covered…sorry for your confusion

  • http://www.timothysykes.com Anonymous

    please re-read the blog post, i detail this

  • sriram

    JIVE looks like a nice buy for a stock.  I don’t see Lithium traded as a stock yet.  As for BVSN, since NIA legally has to hold till feb 22nd could be a great short at the end of feb or begining of march.

  • sriram

    hey tim are you still short, this stock is just taking off?

  • http://www.facebook.com/valentin.rossiwall Valentin Rossiwall

    hey Tim, i tried shorting at Lightspeed last week: no shorts available :( 

  • Digitalegast

    Everybody could make money on this, first the longs and afterwards the shorts… Without Lebed you earned less money and you already short his picks for a long time? You should say thank you Lebed lol.

  • http://www.libertariannews.org/ Michael Suede

    All of that because some guy is “manipulating” people into buying penny stocks.  – No one is being manipulated.  Everyone knows what is going on.  People are joining in the fun because they are gambling addicts.  This article is like blaming a casino operator for providing a gambling addict a means by which he can satisfy his addiction.

  • Reverandglenn

    Don’t be daft. Many people have no idea that the company is a sham. Many people don’t jump in on stock plays because they are addicted to gambling, fool. Trading stocks requires an education in order to be successful, much like a doctor, pharmacist, engineer, etc. This is why 97% of people in the market on their own lose money. If you don’t agree with Tim, just say “I don’t agree”, but don’t talk stupid. You don’t gain credibility by arguing with a point that is borderline retarded.
      The fact is, BVSN has an unbelievable share price for it’s negative earnings, negative gross, negative projections, etc etc.
      If these guys can pull it off and they get the bestter of guys like me, who are fully aware of what’s happening and I understand the risk of a pump and dump, then good on them. I will live to fight another day. BUT, there are many people who just don’t understand and they will be unwitting bagholders and would never dream that a $50+ stock would or could drop 50-60 % in one day. It dropped from $40 to $19 awhile ago, and with no news or earnings, has jumped back up to $50+. I know what’s going on, and I am not addicted to gambling, fool. Pull your head from out your azz.
      Tim is right, it is a pump and dump, and Lebed is a convicted manipulator. Tim also understands that we may take a beating on this fraud. But don’t for one moment think that we are gambling addicts, nor think that everyone invested long in this is aware that it is a dog.

  • http://www.timothysykes.com Anonymous

    haha great comment!

  • Julie

     hello retard. study your history. BVSN had this thingy called reverse splits you fucking moron. god i hate newbies like you.

  • http://profile.yahoo.com/BNZIKJQZQECAJ6I7YPM7VIKR7Y Ben Thare

    I googled Timothy Sykes today. You get as bad a rap as Jonathan Lebed. Should I not believe what people say about you?

  • htg

    hello

  • htg

    im a huge fan
    you rule

  • kiss of death

    Just as he pumps the stock you destroy them you are the one taking peoples money that is the problem with arrogant pricks like yourself. you forcefully take the money borrowing shares that you dont own, that is being a theif as well ,Nowhere else can you borrow somrthing that you dont own to steal peoples money,but in the stock market. You should be in jail. NO i dont own this POS stock never did and never will . But i have watched your videos and you are sicking only your opion matters if soemone truly has faith in a company that you dont like you steal their money. This will be outlawed someday i for one am supporting lobbying to put an end to people like you .And that day is getting alot closer than you think. See some of us know thing that you dont, unbeliveable i know but your day is coming faster than you think.

  • Also stupid but smarter than u

    You sir, who don’t know what short selling is, are stupid :)