ReBuilder (RBRM) Files Complaints Against Stock Traders
CHARLES TOWN, W. Va., Feb. 23, 2012 /PRNewswire/ — The management of ReBuilder Medical Technologies, Inc. (Pink Sheets: RBRM) announces it has filed complaints with the U.S. Securities Exchange Commission and the The Financial Industry Regulatory Authority (FINRA) alleging certain traders of the Company shares may have engaged in the unlawful and unethical sale and trading of the Company’s shares. The firmed has hired a forensic expert to audit all stock certificates and stock trading that has occurred over the last eight (8) months. Further information can be obtained by contacting the Company at 304-725-2202.
The company has recently experienced unexplained dips in its share price, and has uncovered instances of independent third party traders who have promised shares or sold shares, never delivered them, and refused to return their customer’s money.
The company has discovered several other companies that have fallen prey to these unscrupulous independent traders. Evidently, the traders convince their pool of customers to sell shares from prior sales and move the money to their new mark, buying on the open market, thus increasing the price, promising to give them additional shares as a reward. The original company’s shares drop when the traders sell into the market, and the scheme is repeated over and over again.
Similar to a Ponzie scheme, these traders sometimes extort shares from companies for “awareness programs” and pay off a few of the investors who complain. Other investors, embarrassed by being taken in when the stock price inevitably drops, just give up.
The end result for a company is a sudden increase in volume and price, followed by a drop to an even lower level than it was, and the company itself has no idea of what is happening in the background and has to deal with its original core investor’s ire, and can appear incompetent. This takes time from day to day management and makes it harder to attract new, legitimate, long term investors.
RBRM is in the DME (durable medical equipment) business of submitting claims on behalf of customers who purchase the ReBuilder device for the pain of neuropathy, peripheral neuropathy, diabetic neuropathy, and chemo induced neuropathy. The company buys its ReBuilders directly from the manufacturer, ReBuilder Medical Inc. (www.rebuildermedical.com).
ReBuilder Medical Inc. is developing several other medical devices that RBRM is negotiating to sell to its neuropathy customers when approved by the FDA. One of the more interesting devices is one that makes it easy and painless for the nurse to draw blood. For a 2 minute video demonstration, see www.veinappear.com.
SOURCE ReBuilder Medical Technologies, Inc.