Selling a business is standard practice in pennystockland. New stockholders replace others and take over their rights and obligations. Sometimes the business falls into the hands of convicted fraudsters, which is the case with Preventia, Inc. (OTC:PVTA).
On May 15, 2012, Dr. Murray Friedman, then-CEO of PVTA, signed a couple of Stock Purchase Agreements whereby he sold all his common shares totalling 3.8 million to two investors: Robert J. Stevens and Terence P. Ramsden. The former got a 16.2% interest (1.5 million shares) and the latter acquired 25% (2.3 million). Thus, PVTA has just got a convicted investment fraudster as one of its major stockholders.
Once a very wealthy market player, Ramsden was jailed in 1998 as he got convicted of fraud for concealing a substantial sum from creditors in order to buy a house for his family. Ever since he got out of jail, there have been people who wanted to sue him every now and then. Ramsden developed a new trading system in 2004 utilised by the UK-based Private Trading Systems, Plc. Oddly enough, PVTA announced yesterday it had singed a license agreement with … Private Trading Systems, Plc for the distribution of Ramsden’s trading platform.
If this were not enough, the news about the licensing agreement induced a giant promotional wave. Paid email alerts based upon the ‘huge’ press release have been flooding investors’ mailboxes for more than 24 hours already. The advertising campaign bore fruit yesterday as PVTA soared by a staggering 400%.
To wrap it up, after acquiring a 25% interest in PVTA, Ramsden tightens the grip as Private Trading Systems Plc – a company he is associated with – seals a licensing agreement with PVTA. Ramsden is a convicted fraudster who once stole corporate money to buy a house. He is now PVTA’s major stockholder.
