Looks like a classic case of penny stock spam, scam, pump-and-dump. Sunday morning we received an email with the subject line: It is my new MUST SEE STOCK!
It's interesting on Google Finance that the FUEG ticker brings up Intake Communications, which has the same Friday closing price of $.303. Intake was Face Up's corporate name until January 2011. It was then Game Face Gaming until April 2012. The $.303 close reflected a gain of 8.21% on the day on almost 117,000 shares traded. Google Finance has a market capitalization of $16.42 million for FUEG. Yahoo Finance shows Face Up Entertainment Group for FUEG and it shows a higher market capitalization of $17.76 million. We also see that Face Up has hired Al Rash, formerly of Full Tilt Poker, per a press release which is the reason cited by the spammer to buy Face Up. There is a very aggressive "10 Day Goal Value" of $2.36. Although we don't see any warnings from Pinksheets.com, when we were more actively covering stock spams we have seen Pinksheets apply them during and following an email pump-and-dump campaign. As always, caveat emptor!
The body:
One Undervalued Penny Play not to miss! Under Accumulation!
Trading Date: Mon, October 1, 2012
Name: FaceUp Entertainment Group
Symbol to buy: FU_EG
Currently traded: $.303
10 Day Goal Value: 2.36
Advice: Buy/Hold
Fri, September 28 Face Up Entertainment Group, Inc. (To buy: FU_EG), a
Reality Gaming Social Network company, today disclosed that Al, a veteran
writer with forever in the online gaming community, known as "Al CantHang"
from of Full Tilt Poker and the main force behind FullTilt`s Poker Forum
from the rail and most notably of the Epic Poker League has linked forces
with the Crew!!! Al CantHang brings with him exceptional marketing
experience, poker network relationships, community management and in-depth
coverage!
1 comment:
http://www.vosizneias.com/127514/2013/04/04/new-york-7-arrested-in-pump-and-dump-penny-stocks-scheme
From 2012 through March 27, 2013, GOLDSHMIDT, PUZAITZER, VAX, ORENA, GROSSMAN, AKSANOV, and KOIFMAN conspired to commit securities fraud. As part of their “pump and dump” scheme, various defendants acquired control of a large block of shares of Face Up Entertainment Group, Inc. (“FUEG”), and then inflated the stock price and trading volume of FUEG before selling, or “dumping,” those shares at inflated prices to unsuspecting traders for a profit.
FUEG was a publicly traded company that was purportedly involved in the reality gaming social network market with its principal place of business located in Valley Stream, New York. As captured through judicially authorized wiretap interceptions, the defendants coordinated control over a significant portion of FUEG shares and then promoted the stock through the dissemination of false press releases sent over the Internet. In addition, the defendants coordinated trading of FUEG shares to create the impression of increased trading volume to make FUEG appear to be an attractive purchase for unsuspecting investors. However, the defendants were unable to reap a profit from trading FUEG stock timed to the promotions, and their scheme ultimately failed.
As a result of the failed promotion of FUEG stock, GOLDSHMIDT, PUZAITZER, VAX, ORENA, GROSSMAN, AKSANOV, and KOIFMAN conspired to extort one of their co-conspirators, referred to as “CC-1” in the Complaint. In the summer of 2012, AKSANOV, KOIFMAN, GOLDSHMIDT and PUZAITZER met with CC-1 in New York, New York, and demanded that CC-1 pay them $350,000 and return shares of FUEG, or AKSANOV would “put slugs into” CC-1’s chest.
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