upramper ... charged and convicted.

An interesting story regarding internet “up-ramping” in the USA, with some very interesting “local flavour” for many HC readers.
Some heavy fines were involved in the end, but even that had a twist to it.

Summary follows-- Links below for a full story.
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Samuel Meltzer, 37 years old, of St. Paul, Minn., operated under at least 30 different assumed identities online to push penny stocks, the Securities and Exchange Commission alleged in a complaint filed in federal court in Brooklyn, N.Y.

Stocks promoted by Mr. Meltzer include CityView Energy Corp. and Envirokare Tech Inc.( and others). Meltzer received at least $159,600 in stock and cash for spreading false and misleading information about the companies.

In return for compensation from stock promoters and issuers, Meltzer sent millions of unsolicited emails and created numerous websites to promote various penny stocks. To conceal his identity -- and avoid the detection of Web hosts seeking to stop Internet spam -- Meltzer operated under at least 30 different assumed Internet identities, the SEC said.

Meltzer touted CityView on a website and in emails, all purportedly originating from an entities called GrowthStocks2000, Wisestocks2000 and "Stock-Vest."

Those touts stated, "After speaking to management, we believe that down the road [CityView] could be a potential takeover target. Also, according to company management, a future acquisition is possible. … Based on its proven oil and gas reserves the share price should be valued at over ten times its current share price. It is approximately one-tenth its potential value."

Following Meltzer's first email spam concerning CityView, its stock increased in price from 31 cents, with average daily trading volume between 100,000 and 200,000 shares, to a high price of $2.50 on January 24, 2000, on trading volume of over 12 million shares. For the years 2001 through 2004, his projections stated the Australian company's total estimated revenues at $1.8 million, $6.7 million, $20.22 million, and $37.8 million respectively.

There were similar increases in the price and volume of CityView's stock in February, March and April, each correlating in time with Meltzer's emails.

Meltzer knowingly or recklessly made false and misleading representations concerning the issuers' current business and projections of future performance that had no reasonable basis in fact.

Meltzer did not review CityView's filings, did not speak with its management and, instead, merely repeated false and misleading representations, including projected financial results, from the promoters that hired him.

In February 2001, Melzer recommended Envirokare on a Web site and projected annual income for the manufacturer of plastic pallets of $2.2 million in 2001 and $4.3 million in 2002, the SEC said. According to public filings, though, Envirokare was a development-stage company that had reported no revenue since its inception in 1998.

The companies weren't sued by the SEC in connection with the alleged scheme

The Eastern District court of New York entered its final judgment against Meltzer to pay $159,619.62 in disgorgement, plus $89,045.70 in prejudgment interest for a total of $248,665.32. But Meltzer will only have to pay $25,000 based on Meltzer's sworn representations of his financial condition. The court also imposed a penny stock bar against him.

http://www.johnreedstark.net/CurrentEvents/Current%20Event%20Examples%202003/SECsuesspammer.htm

http://www.sec.gov/litigation/complaints/comp17985.htm This very lengthy but has some great detail of the matter and the claims made by the SEC.

http://www1.cchwallstreet.com/ws-portal/content/news/container.jsp?fn=07-19-07