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Options Media Holdings (OPMG) is a small tech outfit based in Boca Raton, Florida.The company produced an app called PhoneGuard that shuts down phones when you’re driving, and it won a celebrity endorsement from none other than Justin Beiber.
The young pop star says he is a belieber in the app, because, as he was quoted as saying in a press release about it, texting and driving is “tragic.”
But… according to the Broward Palm-Beach daily pulp, “the man who created the software has a criminal record that includes being part of a stolen-car ring, according to documents. And analysts have questioned the finances of Options Media, which had almost no money in the bank and a reported $10 million in losses.”
The creator of the company’s app, Anthony Sasso, was convicted of racketeering after investigators found he “was part of a conspiracy to sell stolen and “insurance give-up” cars on used-car lots using bogus vehicle identification numbers and forged documents.”
The CEO of the company has asked Sasso to resign, according to the Pulp: “Sasso will also no longer have voting rights as a stockholder and will have no relationship with the company.”
However, Sasso’s role in the Bieber-endorsed company was not what originally caught the attention of stock analysts.
Penny stocks blogger Timothy Sykes, who first decided to look into the deal had this advice for Bieber: “research a company IN DEPTH before you partner with them and become a 16% owner… Justin Bieber was given 121 million shares at roughly a penny per share, not to mention he will earn royalties on every piece of software he sells in exchange for his promotion which could mean a few million more.”
- The company only has enough cash to last for roughly about 45 days more
- It’s had to do more than 50 financing deals in the last 2 years to stay alive.
- Last year it clocked losses of $10 million
The Bieber camp had no comment on the story.