On September 6, 2007, Department of Justice announced that four defendants have pleaded guilty to defrauding investors of over 20 million in stock manipulation schemes involving 15 different publicly traded companies. One of the companies named in the criminal complaint is Commanche Properties (OTC: CMCH). According to the government's filings, the price and volume of this company's securities was fraudulently manipulated through materially false and misleading statements in press releases and in spam emails.
In its order of suspension against Commanche Properties, the SEC stated that the company was touted in spam e-mails, advertising Commanche Properties as a " multi-million dollar producer of commercially marketable and high quality entertainment products that provides short term return on capital and long term residual income for partners and investors”, ran by known organized crime figure Salvatore “Bill” Bonanno and his nephew, Anthony Tarantola.
The company made an official press release, stating in part: “We do not know, at this point, who sent the 'spam' e-mails. Michael Paloma, a consultant and company shareholder, has also denied any responsibility for any 'spam' e-mails. Further, Bill Bonanno, a movie producer who has agreed to produce three films for the company, has denied any involvement in the 'spam' e-mails”.
EMERGING TRENDS IN PENNY STOCK FRAUD CASES:
SPAMMING, MOVIES AND THE MOB
PENNY STOCKS EXPOSED