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The SEC has temporarily halted trading of Neuromama Ltd.

bloomberg.com

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Re: The SEC has temporarily halted trading of Neuromama Ltd.

#111

Post by akg_67 »

digler999 wrote: post #108
kevinpet wrote: post #57

Earlier quoted context omitted.

Eve finds NeuroMama, a worthless stack of nothing but shady documents, and importantly, without a significant number of shares available to borrow. She knows how to manipulate markets and doesn't care much for legality. Eve buys a significant position in NeuroMama over a period of time. She can do this cheaply, but slightly drives up the price. Alice sees that the stock price has increased and this puts it on her rad…

> to borrow shares so that she can short sell. why would she do this instead of just buying a bunch of put options on the stock ?

There need to be someone who is selling/writing put option before you can buy put option.

Re: The SEC has temporarily halted trading of Neuromama Ltd.

#113

Post by eggy »

Tiajuana, Mexico? Siberia? Sounds like the makings for a 'Red Dawn 2: Putin and El Chapo" where Trump is holed up with the NRA as patriotic rebels protecting Hillary, the POTUS ;)

The 2012 film remake of Red Dawn made China the bad guys compared with 1984 original Red Dawn where Russia and Cuba were the bad guys.

But seriously, could this be used to launder money, or the scam wouldn't allow for it based upon the setup of the short squeeze? Could money be put in the system this way and cleaned and turn a profit at the same time?

Re: The SEC has temporarily halted trading of Neuromama Ltd.

#114

Post by kirubakaran »

colechristensen wrote: post #90
kirubakaran wrote: post #69

Earlier quoted context omitted.

executed brilliantly by Porsche Didn't really work out for them in the end. They executed the short squeeze to acquire VW but they're owned by VW now. http://www.automobilemag.com/news/porsche-and-volkswagen-wha...

TL;DR Banks stopped lending to Porsche before it could seal the deal because 2008 happened.

And Angela Merkel herself dissuaded the sheikh from lending Porsche money!

Re: The SEC has temporarily halted trading of Neuromama Ltd.

#116

Post by MichaelGG »

brownbat wrote: post #109
thegranderson wrote: post #32

Earlier quoted context omitted.

Very helpful explanation from a thread about this on reddit (narrated from the first person perspective of the scammer): It's pretty beautiful in an illegal sort of way: So the clever short sellers borrow and sell 100,000 shares of stock at $2 each, hoping to profit when it crashes to zero. By hypothesis, there are no buyers. But we buy. We buy those 100,000 shares for $2 each, laying out $200,000. Now we own 300.1 m…

If you follow that link all the way back to the original source, you're back at Bloomberg, and the writing of Matt Levine.[0] It provides additional context, some entertaining footnotes, and is generally just very much worth the trip. [0] https://www.bloomberg.com/view/articles/2014-07-11/cynk-make...

That's so damn cool. So does the SEC regularly just raid places or wiretap them or ...? Seems like more sophisticated financial scams can just go undetected or impossible to prosecute if you split it up enough.

Re: The SEC has temporarily halted trading of Neuromama Ltd.

#117

Post by ultrasandwich »

aczerepinski wrote: post #52
largote wrote: post #4

Who honestly believes this company is worth anywhere near $35B?

They own the rights to over 60 jazz documentaries plus a search engine and heavy ion fusion tech.

Their Jazz Network is so bizarre... http://investor.neuromama.com/neuromama-library-of-entertain...

Re: The SEC has temporarily halted trading of Neuromama Ltd.

#118

Post by beedogs »

Animats wrote: post #3

Trading was just halted in Neuromama (OTC:NERO), a startup with a $35 billion market cap. They have a search engine ( https://neuromama.com/ ), a social network ( http://vica.life/ ), and claim "heavy ion fusion" and oceanfront property in Mexico. The CEO got out of prison 6 years ago. WTF?

Something about a sucker being born every minute seems appropriate.

Re: The SEC has temporarily halted trading of Neuromama Ltd.

#119

Post by rdtsc »

ChuckMcM wrote: post #62
thegranderson wrote: post #51

Earlier quoted context omitted.

Haha yeah the pronouns are not the clearest in this. Let me try: Let's set up three parties to this scam: 1. The Scammers - these people start the company 2. The Short Sellers - these are the "smart money" who uncover some fictitious/sketchy company and want to profit 3. Brokers - these are the intermediaries through which both The Scammers and The Short Sellers trade First, The Scammers set up the company and take i…

Ok, that is helpful. I'm still a bit confused though. (where's collida when you need him?) So I get the point where the scammer is selling options amongst themselves to get the stock price to rise. I put out an "ask" and then later come back with another shell company/identity and buy that stock with my "bid". Brokers are handling these transactions by connecting the buyers to the sellers (which happen to be the same…

But there are no options involved here. Short selling is a separate strategy that doesn't involve options at all (as far as I understand).

Your point still stands and in respect to broker(s), I wonder if they:

* knew, but could ignore it, because it is legal and they wanted to collect the fees

* didn't know

* knew, and should have done something, but didn't, and thus broke some law.

Re: The SEC has temporarily halted trading of Neuromama Ltd.

#120

Post by rdtsc »

openasocket wrote: post #88
revelation wrote: post #28

Earlier quoted context omitted.

What the hell is that story in the footer.

Best guess is there was a Victoria Zubkis, daughter of Steven Zubkis, who's body was found washed up under a pier in San Diego. http://www.nbcsandiego.com/news/local/Ocean-Beach-Pier-Death... Apparently that's the CEO's daughter? But the only references I can find say the death was ruled to not be a homicide, so I don't get the references in the text to being murdered by a loved one. And why he put a eulogy to his da…

I think mentally unstable and crazy can be rather orthogonal with the ability to scam people.

Can also see it as a clever ruse -- act a little bit "crazy" to attract some short sellers. In hope they'd think something like "This is some crazy company, so cringeworthy, looks overvalued, let's short it".

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