How are penny stocks any more corrupt than the rest of the market? The only difference is who does the pumping and dumping. Penny stocks do it by snail mail and the web, and the so -called legit market does it on TV. They all lie through their ass.
The SEC has a Madoff rule, Bernard Madoff wrote it, not kidding here.. it may have been when he was more legit, I forget the details but that's what I heard... that's why he has that little "I saw, I came, I conquered" grin on his face all the time probably..