Penny stock promoter … busted! I’m not above a little schadenfreude, so let me tell you a little story about a penny stock promoter who just found himself in big trouble.
Here's some midnight comedy from the penny stock promoter busted today, he's one of several promoters who claimed I shorted their pumps when in fact I've NEVER shorted any stock trading at 1-2-3-4-5 cents/share & haven't shorted ANY PLAY IN MONTHS! Welcome to how BS promoters lie pic.twitter.com/iO6g81H3FB
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Penny Stock Promoter Busted!
In the release, they announced fraud charges, an asset freeze, and other emergency relief against Andrew L. Fassari, a trader in Southern California.
According to the SEC complaint, Fassari allegedly “used social media to spread false information about a defunct company, while secretly profiting by selling his own holdings of the company’s stock.”
And he allegedly used his Twitter account to make false claims about a now-defunct company in the weed sector, Arcis Resources Corporation (CVEM: ARCS).
The Pump Begins…
He’s said to have made claims that ARCS was making a revival and expanding its business — all with “huge” investors on board.
Between December 9 and December 21, 2020, Fassari allegedly issued about 120 tweets that mentioned “$ARCS” … many false and/or misleading.
During the time period of this alleged pumping, the ARCS share price went up over 4,000%.
But that’s not all! The SEC complaint also notes that Fassari allegedly made statements about his own ARCS trades.
Between December 10 and 16, 2020, he allegedly sold all of his shares — and made a profit of $929,000. Meanwhile, he continued to publish misleading information about ARCS…
Everything Comes Tumbling Down
The SEC is charging Fassari with violating the antifraud provisions of the federal securities laws. It seeks a permanent injunction, disgorgement, prejudgment interest, and a civil penalty.
It’s safe to say a lot of other penny stock promoters are spooked.
A lot of promoters have been rushing to delete tweets and accounts since this news broke … As if that’s gonna protect them.
Overall, I think this story is worth reading about because it exposes a pump that was built on utter BS.
Not all penny stock pumps are so blatant. But even pumps that are based on truth can be misleading…
The Problem Isn’t Just Penny Stock Promoters
Yes, it’s a problem that penny stock promoters are out there making false claims. But it’s also a problem that people are listening to them.
Wanna get on the right track? This video is a few years old, but it has a lot of great tips about how I choose trades and why I don’t believe the hype…
Does It Pay to Be Cynical?
The ARCS debacle is a great example of why I think it pays to be cynical in the penny stock niche.
I’ve seen a lot over the past two decades and change. So I understand the sneaky games penny stock promoters play.
And I want every trader to understand this…
Penny stock promoters usually pump up stocks for self-serving purposes.
When traders understand this, they learn to take the promoter ‘advice’ with a grain of salt.
(*Please note: My trading results, along with the results of my top students are far from typical. Individual results will vary. Most traders lose money. My top students and I have the benefit of many years of hard work and dedication. Trading is inherently risky. Do your due diligence and never risk more than you can afford to lose.)
Penny Stock Promoter Knowledge Is Power
You have to learn to stay safe in the stock market.
Or JB, aka “The Wolf of Wall Street,” who inspired the movie by the same name?
Those are big names attached to some crazy scandals. But there are plenty like penny stock promoters and chat room pumpers who don’t have that kind of notoriety.
I try to do what I can to expose the lies I see … But ultimately, the best line of defense against it all is knowledge.
Do you understand why it’s so dangerous to follow penny stock promoters? Leave a comment and say, “I will not blindly follow alerts!”