Litigation releases on the SEC website provide information on the depth of penny stock fraud. Makes me wonder if any of the charges copied below may be applied to Patriot and those affiliated with Patriot.

Penny Stock Fraud

engaged in a scheme involving the payment of an undisclosed kickback to a pension fund manager or hedge fund principal in exchange for the fund’s purchase of restricted shares of stock in a microcap company.

engaged in various schemes. Some schemes involved undisclosed inducement payments made to individuals to facilitate the manipulation of the stock of several microcap issuers. One scheme involved an undisclosed bribe that was to be paid to a stockbroker who agreed to purchase a microcap company’s stock in the open market for his customers’ discretionary accounts.

defendants in the schemes involving undisclosed kickbacks understood they needed to disguise the kickbacks as payments to phony companies, which they knew would perform no actual work. In the schemes involving the undisclosed inducement payments or bribe, the SEC alleges that the defendants knew their illegal activities were meant to artificially inflate the companies’ stock volume and prices.

The SEC’s complaints allege the defendants violated Section 17(a)(1) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5(a) and/or 10b-5(c) thereunder. The SEC is seeking permanent injunctions, disgorgement plus prejudgment interest, and financial penalties against all the defendants; penny stock bars against all the individual defendants; and officer-and-director bars against defendants

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scheme by Defendants to issue and illegally sell purportedly unrestricted securities by defrauding a transfer agent.

engaged in a series of fraudulent activities in order to sell stock to the general public

These activities included obtaining and furnishing false documents (including a sham assignment of debt and a fabricated and backdated corporate resolution and convertible note), to support a legal opinion letter that was provided to transfer agent so that the transfer agent would issue millions of shares of purportedly unrestricted stock in an unregistered offering.

virtue of the conduct alleged herein, (a) Defendants, directly or indirectly, have engaged in acts, practices, and courses of business that constitute violations of Sections 5(a) and 5(c) of the Securities Act of 1933 (the "Securities Act") [15 U.s.C. §§ 77(e)(a) and 77(e)(c)]; and (b) defendants directly or indirectly, have engaged in acts, practices, and courses of business that constitute violations of Section 1 o(b)

of the Securities Exchange Act of 1934 (the "Exchange Act") [15 U.S.C. § 7Sj(b)] and Rule 10b­ 5(a) and (c) thereunder [17 C.F.R. § 240.l0b-5(a) and (c)].

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Did one or more persons outside of PTSC routinely tip others with material nonpublic information obtained from prohibited sources inside Patriot. Did those being tipped then trade on the inside information. Did the tipper(s) in turn compensate their sources with cash, meals, trips and other vacations, and even befriend some sources to gain access to confidential information.

Would the SEC seek the assistance and cooperation of the United States Attorney’s Office and the Federal Bureau of Investigation