Following a clampdown on their illegal activities by local regulators, stock promoters in Vancouver, Canada have turned their sights on lightly-regulated U. S. markets, according David Baines, noted investigative reporter for the Vancouver Sun. As StockPatrol.com has warned, this epidemic of penny stock fraud, criss-crosses the borders of the U.S. and Canada, with Nevada corporations operating from Canadian offices to sell shares to U.S. and international investors. The result is a regulatory quagmire.
"They have not changed their address, or the nature of their deals, they have simply shifted their trading venue from Canada to the United States," noted Baines. "Because these deals are listed in the United States and mainly target American investors, Canadian regulators tend to give them a lower priority than companies listed on Canadian exchanges. And because the companies are domiciled in Canada and run by Canadian residents, U.S. authorities give them a lower priority than more accessible U.S.-based deals. The net result is a regulatory gap that enables scurrilous Canadian promoters to continue doing what they did in the old days of the Vancouver Stock Exchange, that is, scam investors."
Mr. Baines, who has an impeccable record of exposing securities crooks over many years, will join with StockPatrol.com's founder, Hartley T. Bernstein to provide details about penny stock fraud techniques at OffshoreAlert's 4th Due Diligence Conference, in Miami Beach, Florida, on November 14 & 15, 2005.
The two men are scheduled panelists on a 90-minute session entitled "Pennies from Hell: Securities Fraud Dissected", along with Andrew Scott, Chief of Police of Boca Raton, which is the securities fraud capital of the United States; Sasha Angus, Director, Enforcement Division, of the British Columbia Securities Commission; and Christopher Byron, an investigative reporter with the New York Post.
"Penny stock fraud is one of the most widespread and destructive forms of financial crime, collectively costing investors billions of dollars each year in North America alone," said David Marchant, publisher of the Conference's organizer, OffshoreAlert newsletter, which specializes in exposing financial crime.
"Our panelists will look at how stocks are manipulated, including the roles played by market-makers, brokers, promoters, and newsletter writers; the use of offshore shell companies to conceal illegal trading, and how to identify red-flags."
Another speaker at the OffshoreAlert Conference is Marcos Jimenez who, as U. S. Attorney for the Southern District of Florida, spearheaded one of the largest-ever financial crime investigations in North America, a joint FBI/RCMP effort known as Operation 'Bermuda Short'. Mr. Jimenez will talk about the planning and execution of an operation that led to 58 people being indicted for securities fraud and money laundering offenses in 2002, 85% of whom subsequently pleaded guilty or were found guilty by a jury. Operation Bermuda Short netted, among others, Canadian investment banker Mark Valentine, who has been the subject of numerous StockPatrol.com articles.
In another session, Dr. Howard Schilit, author of 'FINANCIAL SHENANIGANS: How to Detect Accounting Gimmicks and Fraud in Financial Reports', will teach attendees how to identify red flags in financial statements, including the use of offshore structures such as special purpose entities, creative accounting techniques, falsely-valued assets and off-balance sheet items – all of which are used to con investors in securities scams.
OffshoreAlert's 4th Due Diligence Conference is being held at The Fontainebleau Resort, in Miami Beach, on November 14 & 15, 2005 and its purpose is to show attendees, particularly those involved in international finance, how to protect themselves against monetary and reputational problems by conducting prudent due diligence on existing and prospective clients and business partners.
It is designed for investors, brokers, attorneys, auditors, professional researchers, senior managers, private investigators, law enforcement agents, banking and securities regulators, and anyone else who wants to minimize their exposure to risk.
"They have not changed their address, or the nature of their deals, they have simply shifted their trading venue from Canada to the United States," noted Baines. "Because these deals are listed in the United States and mainly target American investors, Canadian regulators tend to give them a lower priority than companies listed on Canadian exchanges. And because the companies are domiciled in Canada and run by Canadian residents, U.S. authorities give them a lower priority than more accessible U.S.-based deals. The net result is a regulatory gap that enables scurrilous Canadian promoters to continue doing what they did in the old days of the Vancouver Stock Exchange, that is, scam investors."
Mr. Baines, who has an impeccable record of exposing securities crooks over many years, will join with StockPatrol.com's founder, Hartley T. Bernstein to provide details about penny stock fraud techniques at OffshoreAlert's 4th Due Diligence Conference, in Miami Beach, Florida, on November 14 & 15, 2005.
The two men are scheduled panelists on a 90-minute session entitled "Pennies from Hell: Securities Fraud Dissected", along with Andrew Scott, Chief of Police of Boca Raton, which is the securities fraud capital of the United States; Sasha Angus, Director, Enforcement Division, of the British Columbia Securities Commission; and Christopher Byron, an investigative reporter with the New York Post.
"Penny stock fraud is one of the most widespread and destructive forms of financial crime, collectively costing investors billions of dollars each year in North America alone," said David Marchant, publisher of the Conference's organizer, OffshoreAlert newsletter, which specializes in exposing financial crime.
"Our panelists will look at how stocks are manipulated, including the roles played by market-makers, brokers, promoters, and newsletter writers; the use of offshore shell companies to conceal illegal trading, and how to identify red-flags."
Another speaker at the OffshoreAlert Conference is Marcos Jimenez who, as U. S. Attorney for the Southern District of Florida, spearheaded one of the largest-ever financial crime investigations in North America, a joint FBI/RCMP effort known as Operation 'Bermuda Short'. Mr. Jimenez will talk about the planning and execution of an operation that led to 58 people being indicted for securities fraud and money laundering offenses in 2002, 85% of whom subsequently pleaded guilty or were found guilty by a jury. Operation Bermuda Short netted, among others, Canadian investment banker Mark Valentine, who has been the subject of numerous StockPatrol.com articles.
In another session, Dr. Howard Schilit, author of 'FINANCIAL SHENANIGANS: How to Detect Accounting Gimmicks and Fraud in Financial Reports', will teach attendees how to identify red flags in financial statements, including the use of offshore structures such as special purpose entities, creative accounting techniques, falsely-valued assets and off-balance sheet items – all of which are used to con investors in securities scams.
OffshoreAlert's 4th Due Diligence Conference is being held at The Fontainebleau Resort, in Miami Beach, on November 14 & 15, 2005 and its purpose is to show attendees, particularly those involved in international finance, how to protect themselves against monetary and reputational problems by conducting prudent due diligence on existing and prospective clients and business partners.
It is designed for investors, brokers, attorneys, auditors, professional researchers, senior managers, private investigators, law enforcement agents, banking and securities regulators, and anyone else who wants to minimize their exposure to risk.
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