Penny Stock Platform Picked Pretty Good Day To Stop Working

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Some things went off without a hitch today. Other things did not.

Trading in thousands of stocks listed on OTC Markets Group Inc. froze Thursday after the platform suffered a "connectivity issue," according to a spokeswoman….

The breakdown on the lightly regulated market for stocks of companies too small, sparsely traded or troubled to be listed on the major markets came on a major news day for two of the market's most closely watched stocks, the government-backed mortgage investors Freddie Mac and Fannie Mae.

OTC Markets' outage was unrelated to the reports and was "purely a connectivity issue," said a spokeswoman for the company. She said officials at the marketplace didn't know when it would be able to reopen….

Staff first noticed the technology problems around 6 a.m. EST Thursday and opted not to open up trading when the U.S. stock market opened at 9:30 a.m. EST, the spokeswoman said.

OCT Markets Halted Due to 'Connectivity Issues' [WSJ]
Twitter Soars in Its Trading Debut [WSJ]

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Fake Stock-Picking Robot Threatens To Ruin Things For All The Legit Stock-Picking Robots Out There

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. Defendant Alexander John Hunter, in seeking bids to create the software in 2007, described the requirements for the software to freelance software coders as follows: Need a small software program which will appear to the user that once running it is analyzing thousands of penny stocks. Every so often, the software will find a stock, and a message will appear from the system tray, and on the program showing the ticker symbol. IMPORTANT: This software does not actually find stocks at all. It should connect to my database and simply request any new stocks I have put in. Basically this is almost a “fake” piece of software and needs to simply appear advanced to the user... To say nothing of the fact that his purported credentials were bold-faced lies. On their doublingstocks.com website, the defendants referred to the stock-picking robot as “Marl”, combining the first names of its purported inventors, Michael Cohen (“Cohen”) and Carl Williamson. On doublingstocks.com, the defendants claimed that Michael Cohen “developed the famous ‘Global Alpha’ computer stock trading model” as a contractor for the Goldman Sachs Group, Inc. (“Goldman Sachs”). The Global Alpha program, the defendants claimed, in “most years is responsible for $4,000,000,000+ Annual Trading Profit.” The defendants’ representations about “Michael Cohen” were false. No such employee or contractor worked in that capacity at Goldman Sachs. SEC Charges British Twin Brothers Touting "Stock Picking Robot" in Internet Pump-and-Dump Scheme [SEC] SEC v. Hunter Brothers [SEC]