“I’ve never seen a super PAC used to promote a penny stock.”
In the era of super PACs, where an unlimited of money can be spent to campaign for or against political figures and policies, loose regulation and lack of oversight can make it a lucrative enterprise if abused just the right way.
And no one knows how to abuse the system better than Kyleen Cane.
As reported by ProPublica, a publically-traded company called CrossClick Media had been awarded a contract by a super PAC known as, “Voters For Hillary” to run call centers and provide other services for Hillary Clinton’s campaign. CrossClick (XCLK) stock, initially trading at a hundredth of a penny, soared in the OTC markets following the announcement, its price going up as much as twelve-fold. Anyone selling at peaks would’ve made a tidy profit, which indeed happened multiple times.
But as ProPublica investigated deeper into the relationships between CrossClick and Voters For Hillary, they discovered questionable relationships and spending habits (or lack thereof). It turned out that the majority shareholder for CrossClick is married to the chairman of Voters for Hillary, and that the super PAC has not spent one dime supporting Secretary Clinton’s campaign.
What’s interesting is the money loaned to Voters for Hillary. Some of the lenders, contributing sums up to $250,000, were also registered Republicans. Among the lenders was Kyleen Cane herself, who lent $10,700 of her own money.
Billions of CrossClick’s shares were outstanding by mid 2015, its price history resembling a sharp mountain ridge with steep drop-offs, a sure sign of pumping and dumping. Sadly, the names of whoever made a profit from dumping CrossClick’s shares will never be known as they are not public if trades contain less than 10% of total shares or the seller isn’t a senior officer.
But knowing her history, it’s very likely that Cane was one of those profiteers.