Beware the NIA Penny Stock Pump & Dump

Schiff Report Video Blog May 20th 2011
NIA touts penny stock Mega Precious Metals based solely on its "inferred" 1.2 million ounces of gold. However, NIA knows that "inferred" resources are practically meaningless. More important, they also know that their members, not being sophisticated gold investors, have no clue what "inferred" means and they exploit that ignorance to create a false impression of value. Mega Precious Metals is Mega B.S. DO NOT BUY ANY PENNY STOCKS TOUTED BY NIA

Note: NIA responded to this video by raising a straw man. They claimed they did not "pump and dump" the stock since they did not personally sell any shares. However I never accused them of that. I alleged that a third party paid them to pump up the stock so the third party could sell their shares. The fact that they never addressed this allegation is pretty compelling evidence that it's true.

In fact, by including a disclosure that NIA did not own any shares in their original pump and dump email, they deliberately created the false impression that there was no conflict of interest behind their analysis. However, this is certainly not true if they neglected to disclose that a third party looking to dump their shares paid them to send out the email.

They also claimed that they warned their members that Mega's gold ounces were merely "inferred." That is my point --they did not warn them!. They did not define "inferred", and they counted on the fact that their members would wrongfully assume that "inferred" meant they actually had gold. That is why they fraudulently calculated the value of their "inferred" ounces based on today's gold price.

They also included a list of legitimate gold recommendation. But they only make those "suggestions" to lay the foundation for future pump and dump schemes, as NIA members cannot differentiate between their legitimate recommendations and their paid promotions.

In addition, they accused me of running a failing brokerage firm that will soon be out of business despite the fact that my business has never been better. We have more clients, more assets, more revenue, and more profits than ever. We also generally charge much lower commissions than what they claim.

The fact that NIA resorts to personal attacks against me, complete with false and completely unfounded accusations rather then addressing the merits of my claims provides further evidence that my suspicions are correct.

• Category

  News & Politics

[ihooman]

While I really appreciate your videos, I've made more money on these pump and dump "scams", than I've ever made on so-called legit stocks. How are these pump and dumps any different from big-name analysts that upgrade/downgrade stocks and then either buy/short? You think Kramer is legit? There's a lot more of that type of scamming in big media outlets than there is small pump and dump "scams" ... NIA pumped BVSN and it went from $8 to $56... 700% increase in 3 months. I love that type of scam

[SchiffReport]

But the stock is now at 15 and falling fast. NIA pumped the hell out of it at 50. NIA members lost far money on the way down than they made on the way up. Sure some people got in early and got out with real gains, but far more bought it after the rally and quickly watched their paper gains vanish. NIA members lost a fortune on this scam, while Lebed and the NIA walked away with millions in stolen money. NIA never issued a sell recommendation, but merely moved on to its next pump and dump SYNC

[SchiffReport]

The stock only rose because NIA members bought it. The stock closed Friday at 41 cents. That is the lowest price the shares have traded since NIA recommended it. At this price not a single person who bought this stock and still owns it is ahead. Some NIA members paid as high as 93 cents. My guess is that the average NIA member paid about 70 cents for his shares. Imagine how much lower the stock would fall if NIA issued a sell recommendation?

[saim9293]

@ampmasn my trades are up over 1550% this week. if you know the few good penny stocks out the your returns can be consistently large, once a week i get a penny stock report from a college math wiz and everything in there has been gold. subscribe to his picks before they go private: bit.ly/I8ra0K?=jynifr

[Borris floda]

NIA is now operating under the pseudonym "wall street grand" website is wallstreetgrand DO T c om. this is their new SCAM. Jerard adams + Jon Lebed

[Lupe Burrow]

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[tblackhandful]

So your telling me that the NIA is ran by a former Teenager who has done a pump-and-dump and got to keep half a million AND got away with no chargers just by paying off $285,000. Shit I would keep doing the same thing If i was him and then just pay the judge again

[Dan R]

Well if somebody is dumb enough to buy a stock after it goes from $8 to $50 they completely deserve to lose their money because they are complete fools for chasing a stock. Penny stocks and any stocks with a paid promotion on it are trading vehicles. You should never just buy one of these stocks and think you are going to make money investing in these type of scams.

[CabriniGreene]

zzzzzzzzzzz

[PennyStockEgghead10]

That is the risk of low cap penny stocks.

[brad bain]

Who gives a shit? Get in when they FIRST announce it then you'll make good profits. You're an idiot if you get in in the middle or late. I've made a 252% return with BVSN so suck it!