OTCMAGIC - OTCmagic Penny Stock Fraud

Posted on Monday, February 25th, 2013 at 2:57pm CST by Anonymous

Product: Penny Stock Newsletter

Company: OTCMAGIC

Location: LAS VEGAS, NV, 89103, US

URL: www.otcmagic.com

Category: Business, Finances

This complaint is against OTCmagic.

Because of believing the hype of the OTCmagic newsletter, I lost money investing in one of their penny stock picks. Later after reading the definition on Wikipedia, I found that OTCmagic Newsletter is a penny stock "pump and dump" scheme and is considered fraud.

OTCmagic sends out several emails days in advance, boasting of a stock pick they have coming which will make monster moves. Hopefully on the day of the stock pick everyone will rush in at the same time to buy the stock which will pump the penny stock price up while deceivers, who were already in the stock beforehand, dump their shares making nice profits which in turn drives the price back down. I learned that a third party had paid OTCmagic 10,000 dollars to promote(hype) the stock.

The OTCmagic.com website claims to have picked 100% winners for the past 2 years. This is false and deceiving. The loser pick from the OTCmagic newsletter emails for January 2013 and the loser pick from the OTCmagic newsletter emails for February 2013 are not listed on their website any longer. The day after the stock pick came out, like magic(pun intended), the link to the stock picks had disappeared off OTCmagic.com website after the stock's price had crashed.

I have learned from my mistake and hopefully I can warn others who might otherwise fall victim to the OTCmagic pump and dump scam.

Pump and Dump definition:

"Pump and dump" is a form of microcap stock fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price. Once the operators of the scheme "dump" their overvalued shares, the price falls and investors lose their money.


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