Get SF Weekly Newsletters

Monday, June 15, 2009

All that Glitters: Foster City Woman Slapped with SEC Suit Over Alleged Gold Mine Stock Scam

Posted By on Mon, Jun 15, 2009 at 4:03 PM

Don't buy it
  • Don't buy it
All you underpaid and unemployed folks trying to get by in today's bad economy can file this one away in the "Why Didn't I Think of That?" category. Don't worry -- most of us wouldn't believe we could successfully sell loads of fake stock in a non-existent Filipino gold-mining corporation. But according to Securities and Exchange Commission (SEC) officials, Foster City resident Elvira Gamboa, 57, did just that -- and made off with a nice pot of cash.

Until now.

On Friday, the SEC filed suit against Gamboa in U.S. District Court in San Francisco, claiming that she fraudulently sold close to 2 billion shares in an enterprise known as Pearl Asian Mining Industries, Inc. According to the SEC complaint, the company is "nothing but a shell used by Gamboa to generate stock sale profits." Gamboa even issued a steady string of press releases talking up the corporation's "state-of-the-art gold mill plant facility" and a novel system for refining precious metals that would save the company $10 million per year.

However, "The 'refining system' [the company] purchased was a small

machine from a jewel product supplier for which [it] paid $595 over the

Internet," the complaint states. "In fact, the machine was broken when

delivered, and [the company] never used it for any purpose." Behold the

SEC, where masters of deadpan are made.

The agency alleges that Gamboa made off with at least $1 million from this

scheme, and that an unnamed New York-based outfit sold stock

acquired from her at a total return of $5.4 million. We'll keep an eye on where this one goes. In the meantime, please reread the first three words of the above headline... you know the rest.

Photo   |   covilha.

H/T   |

  • Pin It

Tags: , ,

About The Author

Peter Jamison


Subscribe to this thread:

Add a comment

Popular Stories

  1. Most Popular Stories
  2. Stories You Missed

Like us on Facebook


  • clipping at Brava Theater Sept. 11
    Sub Pop recording artists 'clipping.' brought their brand of noise-driven experimental hip hop to the closing night of 2016's San Francisco Electronic Music Fest this past Sunday. The packed Brava Theater hosted an initially seated crowd that ended the night jumping and dancing against the front of the stage. The trio performed a set focused on their recently released Sci-Fi Horror concept album, 'Splendor & Misery', then delved into their dancier and more aggressive back catalogue, and recent single 'Wriggle'. Opening performances included local experimental electronic duo 'Tujurikkuja' and computer music artist 'Madalyn Merkey.'"