Anastas Gegov

Lawsuit Fiasco Around CodeSmart Holdings, Inc. (OTCMKTS:ITEN)

by Anastas Gegov August 1, 2014

CodeSmart Holdings, Inc. (OTCMKTS:ITEN, ITEN message board)’s stock has been having it rough for quite a while now. The company was traded above the $6 per share mark a year ago, but has since lost 99% of its value and is trading below 10 cents.

The company has made no press releases for quite a lot of time and this is not a surprise considering the things that became clear in the last couple of months. It became so, that the company’s CEO, Ira Shapiro was indicted by the SEC in committing securities fraud alongside 6 others.

His part in the so called pump and dump scheme was issuing misleading statements contained in the company’s press releases on at least three occasions with the sole intent of increasing the interest in ITEN’s stock, boosting the volumes and price.

Among the others that are now accused in participating in the pump and dump scheme are Matthew A. Bell, who was formally associated with Securities America, Inc. Craig L. Josephberg who is associated with Meyers Associates, L.P. the President of OmniView Capital Advisors LLC, Marc E. Wexler, as well as the CEO of OmniView, Abraxas A.J. DiScala.

From text messages sent between the participants it becomes clear that the ex-husband of Sopranos star Jamie-Lynn Sigled, Mr. DiScala was the leader of the gang, as he once told another one of the defendants “I’m Yoda. You are Obi-Wan”.

The pump and dump scheme was not limited to the stock of ITEN according to the indictment from the SEC. Other companies whose stock was allegedly manipulated were StarStream Entertainment, Inc. (OTCBB:SSET), Cubed, Inc. (OTCMKTS:CRPT) and Staffing Group Ltd. (OTCBB:TSGL).

The idea was that the brokers would dump their own shares into their clients’ accounts in order to boost the volume and increase the value of the mentioned penny stocks. Often, the victims were elderly investors, as the brokers placed shares into their retirements accounts without consent.

The recent chatter around investor message boards is that the management of ITEN has been changed and the webpage will be updated. This might be the only reason for the increased volumes and the massive gains in price that the company is making this week.

In any case, the situation remains unclear and you should do your due diligence before making an investment decision.

Comments 2

1. Guest
March 11, 2015, 10:04PM

Quotes I lost all my stock with Codesmart under Matt Bell. What recourse do I have?

2. Guest
August 01, 2014, 09:25AM

Quotes "The recent chatter around investor message boards is that the management of ITEN has been changed and the webpage will be updated. This might be the only reason for the increased volumes and the massive gains in price that the company is making this week."

Really? LOL... Hotstocked is the expert on everything and anything instantly apparently constantly providing one-sided views of companies. Typical of a paid basher.

Try looking into ICM-10, their availability in many states will be the standard in 2015.

http://www.codesmartgroup.com/

http://www.codesmartgroup.com/ebrochure/img/HOSPITAL.Brochure.Digital.V9.P4.11052013.gif

The way the stock has traded last couple days shows the timing of this article was meant to influence lower price.

Your turdly bias has been exposed...

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