east coast diversified corporation (ECDC) Kayode Aladesuyi penny stock scam company, fraudulent news, securities fraud, pump and dump, dilution scheme Atlanta Georgia

This is a penny stock scam company that is run by the Nigerian CEO named Kayode Aladesuyi.  The CEO has been convicted of possession of fraudulently obtained securities in the past, as well as account fraud.

 Basically, they put out press releases saying they entered into agreements and contracts that do not actually exist.  This entices people to buy shares of the company since they believe the company will have revenues from this new "deal" or "contract".   The financial filings never show any of these so called deals, and the company never gives an explanation for their lies.

 The company makes no money from any of their supposed products, but the CEO needs to pay himself a salary of around $300,000. To get the money they issue discount shares to "lenders" by entering into convertible notes. 

 These lenders, often called toxic financiers often get shares at a 50% discount to the lowest price that regular traders can get them for. The lenders use promotion companies, or boiler rooms to generate buyers through the dissemination of false information via email, phone, and by flooding forums and message boards with false information and spam.

 The company continues to issue more shares to pay "salaries" until all the authorized shares have been issued and sold to people who believed the lies.   Then, in order to reduce the number of shares and repeat the dilution process they do a reverse split.  The reverse split essentially wipes out 99.99% of the old share holders money.

 I bought shares in the company because they had issued numerous news articles claiming to have signed a contract for a company to purchase $5 million in products per year for five years.  The CEO stated the contract would begin that year.  By the time the last quarter's filing proved that no contract existed, the shares were essentially worthless.

 They continue to issue similar false statements about contracts with school districts and so on.  Their quarterly filings however, always show that nobody is buying anything from them, and their only source of money is by selling shares at a discount to toxic lenders.

 The CEO has often posted on message boards pretending to be someone who is buying thousands of dollars in stock.  He posts false information claiming that he was never convicted of his crimes, and much other nonsense like "the ceo is a genius", and "they have a blockbuster business".

 The company is a scam which has made millions by committing fraud.  The CEO is a felon for stock related fraud, and was also charged with money laundering, telemarketing fraud, and wire fraud. As part of a plea deal, he pleaded guilty to possession of fraudulently obtained securities and the other charges were dropped.  He continues his scams with his company ECDC.