Tuesday, 3 June 2014

Axstra Capital and Wholesale Investors pump-and-dump

Axstra Capital and Wholesale Investors run a pump-and-dump operation and investment cartel, not to be confused with Avestra Capital and Next Investors, artificially inflating the share prices of small caps for a fee. The Wholesale Investors criminals target small investors, using handy relief helpfully provided by the complicit regulator. As a service to criminals, ASIC regularly provides exemptions that produce loopholes and results diametrically opposite to what the law actually intended. The exemption in question removes disclosure requirements for business introduction services, subject to conditions. Names and logos can only be available on subscription, and acknowledgement of disclaimers is required beforehand. However, Wholesale Investors openly flouts these requirements and makes names and logos available straight away, with additional spruiking available on subscription. For example, one of the Austalian [sic] Investment Opportunities spruiked by the cartel is named Westlake Funding Ltd, as can be seen below by non-subscribers.


The Wholesale Investors website is rife with listed and unlisted securities frauds, with rigged "market" values. The criminals recently took an interest in Qanda Technologies (QNA.AX) and immediately ramped the stock from $0.03 to $0.11. Sharp ramps such as these provide profits for insiders, allows unrealized profits to be booked by fund managers, and increases the value of securities used for further cartel leverage.

In the long term, such manipulated companies inevitably display catastrophic shareholder value destruction. Qanda Technologies illustrates this beautifully, with sequential manufactured ramps interrupting steady decline. This is because QNA is a listed securities fraud.

ASIC protects pump-and-dump cartels instead of protecting the victims, displaying what must now be regarded as treasonous rather than incompetent behaviour. As a result, the Australian share market is now so infested with manipulation it is hard to pinpoint where the fraud ends. By the same token, mainstream financial reporting and pump-and-dump articles are becoming indistinguishable, sometimes written or commissioned by the same criminals. The Wholesale Investors criminals are also associated with the pump-and-dump site Proactive Investors. On 3 June, Queensland Bauxite Limited (QBL.AX) was the subject of a Proactive Investors "article" and 115% share ramp.

According to ASIC these are not ramps but rather magical market mysteries. If fund managers package and dump such ramped shares on granny investors, it is a magical market mystery when the grannies lose all their money. It is not ASIC's fault, since market manipulation does not exist.

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