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Roulette Scams The SCAMMER Steven Hourmouzis.....do NOT purchase a thing from him!

Discussion in 'Roulette Scams' started by mr j, Oct 23, 2016.

  1. nowun

    nowun Member Lineage to Founders

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    SMH, Ken for such a self professed smart "man", you really are an egotistical, delluded, moronic, loser. Notice the commas, that is so you can pause after each word and let them sink in. Google is there for you if you don't understand any of them.

    Anyone with an IQ over 50, after reading this thread would know that you are just out for revenge and disregard almost all of it as the postings of seriously demented person who needs help.
     
    Last edited: Oct 29, 2016
  2. Bombus

    Bombus Well-Known Member

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    This is all such bullshit, I'm seriously thinking about getting one of Steve's computers and testing it out for myself to see once and for all if they work or not.

    Steve and I had a falling out, over Ken ironically, so you could be sure my tests would be impartial because athough Steve and I don't get on anymore, Ken and I get on even less.
     
    Last edited: Oct 29, 2016
    mr j and nowun like this.
  3. mr j

    mr j Well-Known Member

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    Genuinewinner TRICK VIDEO

    Hourmouzis again taken to court and prosecuted along with his *WIFE* Kylie Tjepkema who is also involved in the scam.

    Hourmouzissuedsuccessfully.-294x300.jpg

    The main CRIMINAL Culprit is ” Steven Hourmouzis” in Australia who operates numerous forums and sells under different names who claims he is a legitimate business. Here is his Own History to date. .

    1) Imprisoned for Scamming and Fraud and using the internet for perpetrating his scam 1999 Read more

    2) Forced by US to refund one Victim $8000 who allowed us to show proof ” PUBLICLY” of the purchase and and what he found wrong with Hourmouzis Roulette Computer and his paper system over an 8 month period after we revealed how Hourmouzis scammed Tony from France.

    3) 2013 JULY Recently been investigated and reported to the FBI, one Smart guy went above the Police and the Governing ACCC that regulates businesses to FILE A FEDERAL CASE against Hourmouzis and successfully Sued him in an AUSTRALIAN COURT OF LAW for THEFT. The Courts found Hourmouzis business addresses to be all Bogus. When the courts investigating Officers look into it further it was found that Hourmouzis claims to be Destitute of no Fixed address which is partially true. But his accounts were found to have nearly $50,0000 in Australian Dollars, most of the money coming form his online roulette scams. The address he is currently at is rented and he owns no properties like he claims. The rented property is shared by Kylie Tjepkema and she also became liable for half of the theft from the victim and is involved in the online theft of peoples money. Anyone wanting to join in a joint ” CLASS ” Claim against Hourmouzis simply have to just send me their name and address and proof of purchase. It will not cost you anything at all and you will be entitled to a full refund. The Police and ACCC are now looking into his business affairs and Criminal Activities.





    [​IMG]

    Here is a screen shot of what to look for and how he does the scam, you would never ever find these conditions in a real casino!










    The scam video used to sell his Roulette Computers and paper system from Australia under many different sites and fake names can be downloaded at several sites distributed by his upset customers, but in every case, he uses a COMMON DEALER SIGNATURE to influence where the ball will land so you think he’s predicting the outcome, but he’s manipulating where the ball will fall. Do not be fooled by such simple trickery. Remember, this criminal has been imprisoned for LYING before. Do not trust anyone selling such equipment in Australia, you are not protected with the trading standards over there. Proof is that everyone of his customers have reported him to the ACCC in Australia, but the authorities do nothing.

    Although Hourmouzis claims that the number of ball spins fluctuate, the WHEELS ROTOR is traveling consistently throughout all the video at approximately 1 revolution every 5 seconds. These conditions would be never ever found in a real casino. This consistent speed of 5 seconds is the key to him been able to manipulate where the ball will appear by looking at the numbers opposite, hmm, you are thinking, but how? It also does not matter if he is spinning 8.9,10,11,12 revolutions of the ball, it will land approximately in the same half of the wheel! But how? Let me show you.

    [​IMG]

    As we can clearly see, it does not matter to a degree how fast the ball is spun, even making the ball spin 4 revolutions less will hardly make any difference to where the ball falls, it would only still be around only a 1/4 of revolutions of the wheel out. It sound impossible, but 4 extra early revolutions of the ball only total around 1.25 seconds of time, the rotor is traveling at 1 revolution every 5 seconds nearly all the way through Hourmouzis video.so

    1.25/5= 0.25 of the rotor out even though we have taken away 4 revolutions of the ball and now it only takes 9 revolutions, the prediction is only 0.25 of the rotor out. Sounds impossible, so lets use the exact same graph above and move all ball spins so that only 9 of them is left for the ball to drop instead of 13!

    [​IMG]

    So only 9 spins of the ball to go, using the EXACT ROTOR SPEEDS OF OVER 5 Seconds will produce consistent results within half the rotor, this is how Hourmouzis Tricks you. All he has to do, is look at the NUMBER under an opposite diamond when he releases the ball, spins the rotor at 5 seconds + per revolution of the rotor and the ball will come down with half the rotor!

    Now, surely you could apply this to the real casinos, NO, this has been well known for along time and the reasons why the Croupiers all over the world are told not to use slow rotor speeds and to mix the speeds up! This is why you could never apply this system to areal casino. It has nothing to do with magic patterns, its simply to do with consistent ROTOR SPINS and within certain parameters consistent ball spins say between 8 and 14 ! you could take timings of Hourmouzis videos of his ball timings and Rotor timings and it will reveal the trick is done exactly as it is shown here! There is no magic, just a dealers trick and the reason that dealers can spin against you with slow rotor speed.
     
  4. SteveH

    SteveH Compulsive Liar Compulsive Liar

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    Ken you cut and paste without understanding anything. Anyone can look at my videos for themselves, including the public demo video with a +120% edge. Mark said I paid actors and used magnets. And if you believe him, you're strange. I'd post links of videos, but admin here has a bias and wont allow me to post them. Anyone can find them on my sites.

    If that's not enough:

    ----------------------------------
    Simple Ways To Find The Truth
    -----------------------------------

    1. Get a FREE trial roulette computer to test at home

    2. See a demonstration of my roulette computer on any wheel you want

    3. Get my best roulette computer for FREE, and pay with winnings

    4. Test my roulette system for 5-days for just $1

    5. Review the public and independent test results

    6. See recordings of public demonstrations I conducted

    ANYONE CAN SPIN THE WHEEL THEMSELVES IN DEMOS, OR IF THEY HAVE A FREE TRIAL.

    Proof doesn’t get clearer than this. Alternatively, you can waste days researching blatantly manipulative nonsense about everything imaginable, and still you wont know what to believe. But the truth about what really matters is easily obtained.

    I know you're upset for being moderated. But if you act the way you did, any normal person would expect it. You fought with everyone and nobody liked you. So please don't blame me for doing what any responsible admin would do.

    As I said before, not long ago you confided in me that you were losing at roulette and wanted to buy a roulette computer. And you were saying the publishing of private addresses was disgraceful. Yet here you are, doing it yourself. And no I don't live there. I did for a short time, then I rented it out eventually making $150k profit in 2 years because moving between properties greatly reduces capital gains tax. Dont believe me? Buy the land title history and see. Just from the one property, I made $75,000 per year. It's all on my sites with proof, but admin is biased and wont let me post it. It's not even counting other revenue. I don't mean to brag, but you know nothing.

    I'm sorry I don't have as much time as you on all this nonsense. If you had a legitimate question, I would answer it. But all you do is cut and paste a bunch of lies that are already refuted on a site I'm not allowed to refer to (admin's rules). You have no integrity and dont care abut the truth. Anyone with a brain here knows that.
     
    Last edited: Oct 29, 2016
  5. SteveH

    SteveH Compulsive Liar Compulsive Liar

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    As for the VCAT case, I already explained the blatant lies about it. All the proof has already been posted. I'd link to it again, but like I said the admin is biased and doesnt allow it. So here's a summary:

    ------------------------

    ABOUT THE VCAT CASE:

    This is regarding a legal case referred to by Mark Howe on his various websites. Mark Howe makes blatantly false claims about the case. Vince is a roulette system purchaser. Contrary to Mark’s false claims, Vince’s legal claim had NOTHING to do with the effectiveness of my system. Vince simply didn’t understand instructions to access my system’s software, so absurdly claimed it didn’t exist.

    For almost a month after being given access to my software, he didn’t contact me so I assumed he had no problems. Then he began sending me abusive emails claiming he didn’t understand the instructions. So I asked him to stop sending abusive emails and call me to resolve the issue, OR to hire a mediator. He continued to send abusive emails and refused to call me, so I insisted he hired a mediator which he eventually did.

    Vince’s claims to the mediator were broad and absurd, including reimbursement for services he did not provide receipts for, and enormous fees for his “self-representation”. His only relevant claim was that he paid me for software that “does not exist”. His only proof of anything was a receipt for payment made to me.

    I provided the mediation member with:

    • Login access and instructions for my software
    • Statements and contact details of players that use the software (with their permission)
    • Copies of all emails between Vince and myself
    The mediation member clearly saw Vince’s claims were nonsense. Fortunately for Vince I was honest and explained to the mediator that Vince hadn’t actually used the software yet, and I could cancel his access anytime. So I agreed to give him a refund and considered the matter resolved. The result was formally released as a judgement, and this is what Mark Howe publishes on his website as if it were proof my technology is ineffective.

    Vince didn’t accept almost all of his claims being rejected, so he initiated other precedings that failed. Shown on my site is the result of the latest case. I did not attend this hearing because his claims were so outrageous that I was sure his case would be rejected, which it was.

    ----------------

    AMPLE PROOF OF THIS IS ON MY SITE, BUT ADMIN DOESNT ALLOW ME TO LINK TO IT HERE. He'd rather the owner of a competing forum be attacked, without being able to properly defend himself. It's just how some people do business.
     
  6. mr j

    mr j Well-Known Member

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    Australian Man Jailed Over Stock Spam Incident
    30 October 2000
    CANBERRA, Australia -- An Australian man has been given a two-year sentence after pleading guilty in the County Court to charges related to the sending of mass commercial e-mail, or spam, and bulletin board postings to millions of Internet users.

    Steven George Hourmouzis of Donvale, Victoria, has already had his computer removed and now faces three months in prison after having 21 months of his two-year sentence suspended.

    The United States Securities and Exchange Commission (SEC) also recently obtained a judgment against Hourmouzis and his co-accused and will wrestle back US$15,000 in "ill-gotten profits" from manipulated stock movements on the Nasdaq exchange.

    In what is being hailed as one of the first criminal prosecutions of its kind, two Australian men were charged with criminal offenses in both Australia and the US in May.

    The case was brought by the Australian financial watchdog, the Australian Securities and Investments Commission (ASIC).

    The landmark investigation by ASIC and the SEC was sparked by spam and Web message board postings in May of last year containing information about the stock of a US company called Rentech Inc.

    The two men were charged with sending the messages urging investors to buy Rentech stock.

    Rentech, traded on the Nasdaq market between 1991 and August 1999, develops technology processes that convert gaseous and solid compounds containing carbon into liquid hydrocarbon.

    The spam, Raging Bull and Yahoo message board postings claimed the company's stock was about to jump to $3 or more from around 33 cents, when patents were released. Other promises about the company's shares were made, prompting recipients to buy the stock.

    ASIC said that more than 4 million e-mail messages were sent out. The next trading day, Rentech's stock doubled "on trading volume that was more than 10 times the previous month's average trading volume."

    The watchdog alleged that the spam messages and Web board postings contained information that was false and misleading and was intended to induce investors to purchase Rentech stock.

    Hourmouzis had bought 65,000 Rentech shares through a stock brokerage in Canada a few days before the spam e-mail was sent out and the Web board messages were posted. He then sold the shares on the first trading day after the spamming, raking in a profit of approximately A$17,000 (US$8,891).

    Hourmouzis pleaded guilty to the charges related to misleading stock information. He also pleaded guilty to the "interference with, interruption of or obstruction of the lawful use of file server computers" operated by a range of Australian companies that received the spam "by means of a telephone facility operated by Telstra" - the national telecommunications carrier.

    The Judge earlier ordered his computer removed and Hourmouzis will now spend three months in jail because of the stock trading spam.
     
  7. mr j

    mr j Well-Known Member

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    @Steve >> What is the big issue with my posts? (lol) Remember, it helps your SALES (your words). An absolute load of shit BTW. My analogy for the day >> a guy opens a new bakery. Many complaints regarding the quality and poor service. They take to social media, Yelp etc., slamming the bakery. Your logic, that HELPS the place (lol). Fuckin dumb as a rock you are. If you believed it, you would post NOTHING here and just let me do my thing. Lies as usual.

    Ken
     

  8. mr j

    mr j Well-Known Member

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    @Scammer Steve >> You might not respond but I know you'll read it. So I was bored, looking over Azim's posts at RF to me. Late Sept & early Oct......post after post after post insulting the shit out of me with very rude comments. The reaction from you and Turncoat Turner? Nothing.

    You are the most bias and inconsistent cocksucker on these boards. Also, its almost three weeks for Tamino to be on moderation? Wait wait wait, I know already....you are not bias. At least man the fuck up and admit it. Gain some of your pride back. It'll look better for your SALES (cough). You are no better than Michael S.

    Cut from the same cloth. Some of the members are your friends?....just as long as they are doing something for you. (rofl)

    Ken
     
    Last edited: Oct 29, 2016
  9. SteveH

    SteveH Compulsive Liar Compulsive Liar

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    Almost 20 years ago when I was 21 years old, I was involved in the stock market and publicly stated a company’s stock price would increase by about +900%. The judge thought it was absurd, and I was sentenced to 3 months in prison. Later, my predictions came true and the stock price increased by +1,500% but it was too late.

    At the time, my internet promotional company was one of the top 3 in the world and was well known. I was approached by a company to promote their public shares on the NASDAQ exchange. They offered me company shares in exchange for my promotional services. When I publicized this new service I offered, other companies approached me with similar arrangements. Basically I received “stock options” from clients (company shares), and I was able to either keep or sell the shares once they reached a certain price. For example, a company would pay me $200,000 in stock options at $1 per share, but I could only sell them when the value reached over $2 per share.

    I was only about 20 years old at this stage and barely knew what shares were. Essentially all I knew was that if you promote stock by convincing investors that the company had strong potential for growth, people buy shares in the company, and the shares increase in value. I didn’t know anything about dividends or what the shares actually represented. Essentially, the company sent me press releases which I promoted. I conducted numerous such promotions with the word of my success spreading quickly to other companies wishing to promote their stock.

    In addition to the shares I received as payment, I eventually began to also buy shares from my own money because I knew the effect of my promotions.

    Typically to promote shares, I would research various companies with the following criteria:

    • Positive company news that indicated developments are likely to increase the company’s profits: although I didn’t understand it at the time, I knew if a company was expected to increase its profits, more investors would purchase shares and the share price would increase.
    • Previous negative company press releases that investors over-reacted to by selling shares: This created undervalued stocks. I would look at particular company press releases and the respective dates of release, then see how the stock price was affected in the following 3-6 months. For example, company news may indicate its revenue will drop by 5%, but the stock price may have dropped by 15% as a consequence of the company news.
    • Initially undervalued stock price: such shares have greater potential to increase in value when more investors read the press releases I promote.
    There was a variety of other factors I considered. I was still very new to the stock market but learning very quickly, although was not aware of how strictly regulated it was by authorities such as the SEC and ASIC. As far as I was concerned, ASIC was a shoe.

    When I selected a company for promotion, I basically promoted precise copies of the company’s most positive press releases. This basic approach earned me approximately $30,000 per promotion, and I was able to do such promotions frequently. At only 20 years of age, I was earning quite a bit. However, one particular promotion taught me a lesson in being careful about what you publish.

    As associate suggested a list of companies for me to consider. One of them was “Rentech” and after conducting my own research, I believed it had enormous potential for growth. Therefore I created a summary of the company’s most favourable press releases, and commenced a promotion. The material I published was based on the following facts:

    1. Rentech generates revenue by licensing patented technology

    2. Rentech had a pending patent for new technology.

    3. Rentech was facing delisting from the NASDAQ stock exchange because their share price had fallen below the minimum required value. Therefore, Rentech asked NASDAQ for a time extension to make several important announcements that they believed would sufficiently increase their share price, and keep them on the NASDAQ exchange. NASDAQ granted Rentech the extension after a hearing, so clearly they were satisfied that the pending announcements were likely to increase the share price.

    4. The company’s representative (Mark Koenig) personally told me they did indeed have critical positive news that will soon be released, although details were confidential at the time.

    5. Rentech’s technology is widely used by large companies including Texaco oil company. Therefore Rentech’s new technology may be extremely profitable for them.

    Based on these facts, I believed that Rentech was going to announce revolutionary new technology that would be used by Texaco and other oil companies, and that this will dramatically increase its share price. It may be a clumsy assumption, but at 21 years old, I believed it was reasonable. And based on all factors and my experience to this point, I believed Rentech’s share price would increase by over 900% in time, and I published my beliefs throughout the Internet.

    The reality was that Rentech did indeed have multiple positive announcements scheduled for release that were likely to increase the share price, just as Rentech’s directors themselves said. And they did have a pending patent. But their announcements had nothing to do with Texaco. So the core of the case was I published my assumptions which were not quite correct.

    My initial promotion of Rentech would increase the share price in the short term, but the majority of the increase was expected after Rentech’s expected announcements we made. The material I published was more intended to have people watching Rentech’s announcements to verify my beliefs, which is why the material I published claimed there was “imminent outstanding news” the company would soon release. So I intended to sell my shares some time after Rentech’s announcements. This would have been perfectly legal if I had only published exact copies of Rentech’s press releases, instead of including my assumptions as I did.

    After my promotion, message board postings from investors indicated I had made a mistake, although at the time I did not know what it was. In panic, I sold all my shares and made only a small profit. At this stage I conducted my business as usual. Eventually though I was charged by ASIC who alleged that I deliberately misaligned facts to mislead investors. They also claimed that my 900% price rise prediction was absurd and purely to mislead investors. Initially I was charged with “intentionally” making misleading statements to induce investors to purchase shares. But after meeting with ASIC to explain what happened, the charge was downgraded to “recklessly” making misleading statements. As publishing my assumptions was arguably “reckless” regardless of my young age, I pleaded guilty and served 3 months.


    What about the stock price of Rentech? Did it increase like I said?


    rentech.jpg

    In my promotional material, I stated I believed the stock price would increase by about 900%. Shown left is what it did. From the price at which I purchased the shares ($0.33) to the 10 year high ($5.3) is over a 1500% price increase – almost double the increase I stated. The phenomenal price increase lasted over a year and occurred some time after my promotion, so it clearly had nothing to do with my actual promotion. Unfortunately this occurred after my sentence, so it couldn’t be used as evidence.

    If I had held onto my stock and sold at the optimal time, I would have profited approximately $800,000.

    Additionally, ASIC alleged that the victims of my crime were the investors. But the reality is any investor who took my “unlawful advice” and purchased the shares and sold at the right time, or still held shares today, would have profited substantially.

    Despite me being up-front and honest about what happened, as you can expect, “sellers of other gambling products” distort the facts of this case to portray me as a dishonest scammer that went to jail. This is how they “compete”. But what happened nearly 20 years ago when I was close to a teenager is no indicator of the effectiveness of my technology. Of course “competitors” know this, but would they care? Additionally, ASIC knew about the other stock promotions I conducted, but I was only charged with this promotion because it was the only time I published inaccurate assumptions instead of precise copies of company press releases.

    Nevertheless, regrettably, not everything was innocent. For example, I falsely claimed that “analysts” had made the predictions when it was in fact me. However, I was not charged for this. Additionally, under a fabricated name, I posted messages on chat forums encouraging investors to investigate Rentech’s company news and purchase shares. Although these postings were designed to encourage investors to research Rentech, not to mislead them. Otherwise, I truly believed in the accuracy of my claims and honesty of my actions – specifically that Rentech will be announcing news that will dramatically increase its share price. And I was correct about this, with the share price increasing by approximately 1500%.

    Again this happened nearly 20 years ago when I was quite young and inexperienced, but involved with strict regulations of the SEC and ASIC. I accept that I made mistakes and learned from them. But this case is more a matter of publishing clumsy assumptions as an adolescent, rather than deliberate deception. Unfortunately various people use these events against me for their benefit, without consideration of the truth.
     
  10. mr j

    mr j Well-Known Member

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    You're gonna have a contest vs. me? Good luck.

    Ken
     
  11. RouletteGhost

    RouletteGhost Well-Known Member

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    Yea steve. What are you thinking.

    You cant reason with a moron.
     
    mr j and SteveH like this.
  12. SteveH

    SteveH Compulsive Liar Compulsive Liar

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    Ken said:

    The math is this: anyone with a brain and intention to spend between $2500 - $80,000 with me, or enter an arrangement to pay only with winnings, is going to do proper research and find kens motives, the motives of people like mark howe, and see my response with facts. The truth is on my side. People with money are not idiots. Only people on forums who are broke and desperate to harm others have no brains.

    That's why there's the saying no publicity is worse than bad publicity.

    I'm not trying to stop the lies about me because that's impossible. All I need to do is respond with facts. Then anyone with a brain can just research. And anyone not smart enough to figure it out is not the type of person i want to work with.

    It's impossible to suppress even one persons efforts to post junk. Negative information can be posted anywhere, so I do not even bother to try to suppress it, and buying every site is not a viable approach. All you'd do is post elsewhere.

    So I just respond with the truth, and remind people they can even test my computers and system before buying. Remember the truth is on my side. In the end the reason i respond is not for money. I do rather well either way. Its to tell the truth about me. I'm an honest person who is attacked with atrocious blatant lies.

    i offered to buy this site because i wanted a forum that covered all games, not just roulette. That's why I created my other forum (which I wont mention because admin doesnt like it, but links are on my site). As I told this site owner, this forum has almost no organic traffic, the members are almost all banned from other forums, most of the posts are stolen from other forums, and virtually the only original posts are junk bickering like yours. What I liked was the site functionality.

    Ken, chatting with you is like chatting with a child. You are incredible immature. I'm not having a contest with you. I couldn't possibly waste more time on this than you. I've said what I had to say for now, and you'll continue to cut and paste nonsense. If admin lets you keep bumping the thread, anyone who's interested can read my responses, the facts, and do more research. The end result is anyone in a good financial position is going to have enough brains to figure it all out.
     
    Last edited: Oct 29, 2016
  13. SteveH

    SteveH Compulsive Liar Compulsive Liar

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    There is no bias. For years you were mod and didn't even understand simple rules to enforce. I dont expect you'd understand it now either.

    Actually Bombus and I were somewhat friends when he was mod. And he was removed as mod because I felt he was moderating you unfairly. I didnt like you, but there was no bias for or against you. So please, dont tell me I'm biased. I'm as fair as I could possibly be.

    As explained to every member, the mods don't have time to read everything. So you need to report infringing posts, or we dont know about it. The reason people like Azim post like that towards you is because you attack them and treat them with so little respect. You were just getting back what you give. Like I said before:

    People see through you Ken, which is why nobody likes you. So you just attack me, the admin, instead of understanding you are the problem - not other people. I know you'll have more questions and comments but I don't have time, sorry.
     
  14. Turner

    Turner Active Member

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    Well...its an improvement on "biased prick" lol
     

  15. RouletteGhost

    RouletteGhost Well-Known Member

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    Steve were you taking hard drugs when you replaced bombus with mrj

    and were you still on drugs when you kept him a mod for years

    The guy is an obvious idiot.
     
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  16. SteveH

    SteveH Compulsive Liar Compulsive Liar

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    In yet another ironic twist, you can blame Bombus for that.
     
    Bombus likes this.
  17. SteveH

    SteveH Compulsive Liar Compulsive Liar

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    At my forum (rouletteforum .cc), I've started a thread regarding another Ronjo style test. That's where I send me roulette computer to some here or whatever forum for free, so they can test and report back the truth. IF YOU ARE INTERESTED, YOU NEED TO DISCUSS THIS AT MY FORUM. the thread is in the testing zone.

    Admin, sorry for this dominating the forum for now (and it being on multiple threads), but remember I'm only responding to the nonsense.
     
  18. mr j

    mr j Well-Known Member

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    This really needs more attention !! Plus, I love seeing Scammer Steve's cool title (hahaha)

    Ken
     
  19. mr j

    mr j Well-Known Member

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    Australian Man Jailed Over Stock Spam Incident
    30 October 2000
    CANBERRA, Australia -- An Australian man has been given a two-year sentence after pleading guilty in the County Court to charges related to the sending of mass commercial e-mail, or spam, and bulletin board postings to millions of Internet users.

    Steven George Hourmouzis of Donvale, Victoria, has already had his computer removed and now faces three months in prison after having 21 months of his two-year sentence suspended.

    The United States Securities and Exchange Commission (SEC) also recently obtained a judgment against Hourmouzis and his co-accused and will wrestle back US$15,000 in "ill-gotten profits" from manipulated stock movements on the Nasdaq exchange.

    In what is being hailed as one of the first criminal prosecutions of its kind, two Australian men were charged with criminal offenses in both Australia and the US in May.

    The case was brought by the Australian financial watchdog, the Australian Securities and Investments Commission (ASIC).

    The landmark investigation by ASIC and the SEC was sparked by spam and Web message board postings in May of last year containing information about the stock of a US company called Rentech Inc.

    The two men were charged with sending the messages urging investors to buy Rentech stock.

    Rentech, traded on the Nasdaq market between 1991 and August 1999, develops technology processes that convert gaseous and solid compounds containing carbon into liquid hydrocarbon.

    The spam, Raging Bull and Yahoo message board postings claimed the company's stock was about to jump to $3 or more from around 33 cents, when patents were released. Other promises about the company's shares were made, prompting recipients to buy the stock.

    ASIC said that more than 4 million e-mail messages were sent out. The next trading day, Rentech's stock doubled "on trading volume that was more than 10 times the previous month's average trading volume."

    The watchdog alleged that the spam messages and Web board postings contained information that was false and misleading and was intended to induce investors to purchase Rentech stock.

    Hourmouzis had bought 65,000 Rentech shares through a stock brokerage in Canada a few days before the spam e-mail was sent out and the Web board messages were posted. He then sold the shares on the first trading day after the spamming, raking in a profit of approximately A$17,000 (US$8,891).

    Hourmouzis pleaded guilty to the charges related to misleading stock information. He also pleaded guilty to the "interference with, interruption of or obstruction of the lawful use of file server computers" operated by a range of Australian companies that received the spam "by means of a telephone facility operated by Telstra" - the national telecommunications carrier.

    The Judge earlier ordered his computer removed and Hourmouzis will now spend three months in jail because of the stock trading spam.
     
  20. mr j

    mr j Well-Known Member

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