Operation Spamalot: The Canadian Connection

There are many fascinating aspects of the SEC’s just-completed Operation Spamalot — its investigation into stock-spamming that has resulted in 35 companies having trading suspended. Among them, is there any common link among all (or some) of these companies, beyond the obvious, that they were on the receiving end of positive stock spam?

Nevertheless, my favorite aspect of Spamalot is the “Canadian Connection”. And what is that, you ask? Good question. Well, out of the 35 companies touted in stock spams who now (courtesy of the SEC) no longer trade, eight were either headquartered in Canada, or had offices there.

Damn Canadians. I always knew they were massing on the U.S. border for something, but who would have thought it was stock spam. Marginally more seriously, it is an interesting statement about the global nature of this problem, not to mention the continuing lax oversight of Canadian public companies.

See 3/8/07 Press release and Order.


  1. no enron up here buddy?

  2. Traitor :-)

  3. The Canadian securities regulators are aware of the problem with “non reporting issuers” who choose to list down south via the otc or pink sheet venue and are working with our regulators very dilligently now.
    As of March 26th, 2007 there will also be a new head of enforcement with the British Columbia Securities Commission, Langley Evans. This guy is good and is currently head of their market reg group.
    I applaud Operation Spamalot and believe there will be many more firms who find themselves on the 10 day trading suspension list.

  4. Good morning, Paul et al. This crackdown is welcomed with open arms by legitimate participants in the the small-cap, micro-cap world that have been painted by the broad brush of e-mail stock promoters. They are a scourge on an industry filled with legitimate smaller companies that are working hard to become bigger ones via proper business tactics.
    On point, I gave a speech at the PIPEs conference in New York this past November titled “E-Mail Is Dead. How To Run Great Investor Relations In A Web 2.0 World” You can find the press release here: http://prweb.com/releases/2006/10/prweb453716.htm
    Webcast is available here:

  5. George:
    I checked out your website and saw that you provide IR services for a firm called ActiveCore (ATVE.OB). Several months ago (late January), your client’s firm was being promoted on numerous message boards by “ExplosivePennyStock.com” and rated “Immediate Buy.”
    Here’s a price chart which illustrates how effective this promotion was (short term):
    ExplosivePennyStock.com typically charges $10K per month for services such as this. I do not know if there was any unsolicited e-mail and/or fax blasting associated with this campaign or unsolicited slick glossy mailers.
    I personally don’t believe legitimate businesses need to promote themselves in this manner, sir.

  6. Here’s a link which corroborates what I stated about message boards, hot sheets, and stock promters:

  7. SEC/NASD, thanks for the post. We provide ActiveCore with an moderated online forum for discussion between management and shareholders.
    We don’t know or have any kind of affiliation with ExplosivePennystocks.com. Most importantly, we don’t condone any kind of spamming tactics that involve e-mail, faxing, discussion boards, etc.
    Unfortunately, companies get called 10x per day by promoters such as the one you outlined above and, despite our counsel to the contrary, some will engage in such tactics.
    Hope this helps.