Professional Documents
Culture Documents
Wall Street:
Crowd Sourcing
Suspicious Activity Reporting
in
Penny Stocks
William Casey King, Ben Johnson
Phronesis, LLC
Yale University
Problem
Traditional means for suspicious activity
reporting require the cooperation and
active participation of bank officers,
compliance officers, brokers, broker
dealers through the required filing of a
suspicious activity report (SAR).
2009
2010
2011
2012
Banks
720,309
697,367
798,688
860,858
596,494
685,009
585,874
Securities and
Futures
Industry
18,758
19,903
21,308
18, 385
Message Boards
1. Create a lexicon of suspicious activity keywords from
a study of precious SEC action against stocks, and the
message board activity that occurred at that time.
2. Expand the lexicon to include any words in the
English language that suggest suspicious activity.
Does it work?
Spikes in both volume and suspicious activity index
attributed to:
Accredited Business Consolidation Corp.
TCKR: ACDU
Accredited Business
Consolidation Corp. (ACDU)
What precipitated the volume spike and price increase?
A couple of newsworthy items:
1. A takeover by Abraham Blauvelt, Ltd.
2. The purchase of 300 acres of land in Bluefields,
Nicaragua
3. The departure of their President, Joanne Chmielewska
Capital
Other Investments
We own 1,000,000 shares of James Monroe Capital
Corp., an entity that trades on the over the counter
market as JMCP. We paid $200.00 for the shares. We
revalued the shares base on market value as of December
31, 2011, at $100.00, or $.0001 per share. We know little
about JMCP except that our investigation demonstrated
that it appears to be part of a stock fraud scheme that
issues shares pursuant to fraudulent and inflated debt.
We were looking for somewhere cheap to stay near Kennywood, and this
place looked okay. The owner showed me one room, but then decided
we'd have more privacy in another. Apparently he rents by the hour. At
least he was up front about that. . .We ended up in a carport room. It was
small, and looked clean. Unfortunately, there was a lot of hair on the
sheets. I was able to brush it off before my wife saw it. I'm praying that it
just didn't come out in the dryer. I also hid the ashtray with gum in it
behind one of the lamps. . . The bed was decently comfortable, and it was
quiet at night. It looked like he didn't get any hourly clients, there were
only two other cars there when we got back. All in all, it wasn't terrible,
but I'd just as soon try one of the other nearby motels next time.
Thanks