Media Alert: ZYTO Corp Text Messaging Scam under Investigation
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CFO Sends Message to Beware of New Illegal Trend OREM, Utah--(Business Wire)-- In a recent text messaging scam, selected individuals around the United States have received a text message promoting ZYTO Corp stock (Pink Sheets: ZYTC) and requesting that the recipient purchase its stock. "This type of text message is illegal and ZYTO is not involved in its sending," said Kami Howard, Chief Financial Officer. "These messages are neither solicited nor condoned by ZYTO Corp." According to Howard, the text message is sent by an unknown third party. "We are attempting to find the source of the messages and have them stopped. We apologize for any inconvenience this may have caused our investors, vendor partners, employees or any individual who has received these unsolicited messages." Unfortunately, this type of scam is not new. "This could be what is commonly known as a 'pump and dump' scheme where scamming parties will purchase the stock of a company and then try to artificially inflate the price of the stock through a vigorous and misleading advertising campaign," said Howard. If enough investors purchase a given stock based on the misleading advertising campaign the stock price could be artificially increased. These scamming parties then sell the stock at the manipulated price thus potentially causing an artificial price decrease. "It could also be part of a scheme whereby short sellers of our stock perpetrate the scam to discredit our company in the eyes of investors and thereby encourage a sell-off," she said. Either practice is in contravention of United States law 15 U.S.C. ss. 78(j) which prohibits manipulative and deceptive practices in regards to securities. ZYTO has been proactive about this news and has reported what it knows to the SEC. Howard noted that consumers should be mindful of this new tactic that offers great deals on "hot stock" purchases over their cell phone. Most calls come from "unknown" contacts which should be the consumer's first "heads-up" that the information may not be credible. ZYTO Corp. was founded by Dr. Vaughn Cook, OMD. The company provides decision support technology focused on the healthcare market. For more information about ZYTO, visit zyto.com or contact their Headquarters at 801-224-7199. ZYTO Corp Kami Howard, 801-224-7199 Copyright Business Wire 2008