The Hidden Power Players

(Bloomberg) “I still couldn’t understand how a wannabe musician from Long Island had become a millionaire investor virtually overnight. I’d found a 2012 lawsuit in which a financier named Yossef Kahlon accused Sason of copying his business model, but the only thing Sason would say about him is that they hadn’t spoken in years”.

“Magna wasn’t the only group calling. Executives of penny companies say that when their stock has a high trading volume, they get bombarded by young salesmen and washed-up bankers asking if they need cash—and often they say yes”. …..”“All they care about is the liquidity of the stock,” he says. “They want to see how many dollars are trading a month.””
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Pictured below is the official complaint referenced in that Bloomberg article. In Texas they give exemption from registration when you sell to large investors — the official term is accredited investors — but he was just buying then dumping immediately into the open market, and many times not in Texas.

At first, several experts who aught to have known said it was legal…

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