GenMed (Fake Generic Drug Company) Founders And Others Arrested for Manipulation and Stock Fraud As the Feds Arrest 14 Individua
Posted Feb 14 2013 6:52pm
The arrests were related to GenMed and for an ad agency, FrogAds. There were additional fake press releases that went along with all of this. GenMed was fake company which was represented to develop and manufacture generic drugs. The actors in the videos were for hire and didn’t have any part of the fraud scheme. I guess the only thing we can say here is to watch who you endorse. The stocks traded over the counter so no exchange representation there as if one is trying to hide I guess that is part of the game.
What they did was convince investors that the companies had great potential for profits and built an entire fake scenario around the two companies and this was not the first time for a couple of the individuals. Here’s the video introducing the “fake generic drug” company. They even paid a stock analyst to promote the stock and hid money in offshore accounts. BD
Federal authorities arrested 14 individuals on Thursday for allegedly masterminding a far-reaching stock manipulation scheme that defrauded 20,000 investors out of $30 million, entailed the use of offshore accounts and shell entities with names like "Dojo," "Picasso" and "Big Dog" — and used actors Pamela Anderson and Eric Roberts as unwitting promoters of the scam.
Anderson appeared in a 33-second video for FrogAds.com, which appeared on YouTube. (FrogAds.com's CEO, Julian Spitari, was one of the men arrested.) FrogAds.com "purported to operate an online bulletin board for classified advertisements," according to a statement from the office of the U.S. Attorney's office. According to U.S. attorney for the Central District of California, André Birotte Jr., she had no idea that she was participating in fraud.
Superficially, the scheme the defendants are charged with perpetrating resembles a classic "pump and dump" market-manipulation scam.
Along with Anderson's video, Roberts appeared in a longer video, just over four minutes, for Genmed, "which purported to develop, manufacture and distribute generic pharmaceuticals," according the same U.S. Attorney's statement. Roberts was also an unwitting participant.