Friday, August 10, 2012
Five from Surrey accused of major stock scheme
Well, it looks like Surrey criminals are moving up in the world and setting their sights on bigger pies in the stock market. Deregulation opens the door to stock fraud. To protect our pensions from criminals we need to reexamine deregulation.
The provincial securities regulator is alleging five people manipulated share prices of a company and profited by $7 million in the scheme. The company is OSE Corp, an Ontario company, whose shares are traded on the TSX-V and has a head office in Delta. This corporation is involved in the exploration and production of oil and gas in Ontario (Canada) and in Texas and Montana (USA). Seemingly it was another fake oil and gas company involved in the same old pump and dump. Those people bought the $2 stock that was just about worthless. It's trading now for eight cents. History continues to repeat itself.
Stock Fraud watcher David Baines from the Vancouver Sun has written about it.
State securities regulators around the country warn that oil and gas investment scams are alive and well. High oil prices have created a heightened interest in investments in energy-related business ventures. As more and more people invest in oil and gas securities, the likelihood of oil and gas fraud scams goes up dramatically. Fast talking brokers can trick investors into putting their money in non-existent companies or into buying overpriced stocks.
Clearly criminals are very much involved in the stock market. This is what's creating financial crisis in Greece and around the world, not the desire for affordable housing and affordable medical.
Texas sees spike in oil and gas fraud
Financial Crimes Report to the Public
The fraud is two fold. First we have individuals price fixing fake or over inflated pump and dump stocks. Then we have the huge banks and corporations like Goldman Sachs doping the same thing on a much larger scale going unpunished.
It’s also related to the creation of the Intercontinental Exchange (ICE) in 2000. It is outside the US and operates free from the constraints of US laws. The exchange was set up to facilitate "dark pool" trading in the commodities markets. Billions of dollars are being placed on oil futures contracts at the ICE and the beauty of this scam is that they NEVER take delivery, per se. They just ratchet up the price with leveraged speculation using your TARP money. This year alone they ratcheted up the global cost of oil from $40 to $80 per barrel.
One blog reader related it to the NASDAQ water index. Criminals inflating the price of commodities just because they can make a buck off it at the public’s expense. I’ve heard of the water crimes blog but it’s a bit hard for me to follow. The bottom line is this commodity exchange scam is bleeding us dry.
The Global Oil Scam: 50 Times Bigger than Madoff