Imagine, if you will, that you are a stock-picking robot. You’ve put in the time, come up through the trenches, and have finally started to garner the respect you deserve. Investors are flocking to your fund, begging to put in as much money as you’ll let them. People were wary at first, not sure what to make of your style, but you’ve finally proved to them you’re the real deal. Life is good. Then some two-bit hacks come along and threaten to destroy everything you’ve worked for, sullying the reputation of legitimate stock-picking robots with the one they used as a front for their scam.
Starting at the age of sixteen, the defendants, twin brothers Alexander John Hunter and Thomas Edward Hunter, developed an elaborate scheme to manipulate the prices of penny stocks at the expense of unwitting investors. The Hunters concocted and hyped the tale of a “stock picking robot” named “Marl” that they claimed could identify penny stocks that were poised to appreciate sharply in value. In their email newsletters and websites (doublingstocks.com and daytradingrobot.com), the defendants represented that the “robot” was a highly sophisticated computer trading program and the product of extensive research and development. The defendants’ story was persuasive. Approximately 75,000 investors, the vast majority of whom lived in the United States, paid at least $1,200,000 for annual subscriptions to the Doubling Stocks newsletter and copies of the robot software. In reality, the “stock picking robot” was a work of fiction.
Did “Marl” come up with brilliant investment ideas based on painstaking research, meetings with management, and complex analysis? No, in fact he did not. Read more »