The SEC finally acts against Sniffex - one of the great pump and dumps of our generation
July 15, 2008
– Comments (5)
See the SEC complain in the matter.
Citron Research disparaged this company back in the day.
From the SEC complain:
"According to the complaint, as a result of the fraudulent promotional campaign, Sniffex's share price increased from $0.80 to $6.00, giving the bogus company a market capitalization of $474 million at the scheme's peak. The individual defendants profited handsomely by disregarding re-sale restrictions and selling their scheme-derived shares into the artificially inflated market. Lindberg sold approximately 2.071 million shares for a net gain of approximately $315,481; Mihaylov sold approximately 3.73 million shares for approximately $11.3 million; Markov sold approximately 2.8 million shares for approximately $8.6 million; and the Klausgaards sold approximately 3.75 million shares for approximately $12.3 million. Neither the Sniffex press releases nor other public statements made in the scheme disclosed that Markov and Mihaylov controlled Sniffex, that they and the Klausgaards controlled virtually all of the company's public float, and that this group intended to sell, and was selling, millions of secretly owned shares into the market."
I nominate TastyLunch to make any snarky comments I would make if I had the time.
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