Yesterday I was flabbergasted to see what purported to be a press release from Eternal Technologies Group (ETLT.OB) entitled “Eternal Technologies Does Not Have Sufficient Assets in the United States to Post Bond to Stay Enforcement of Writ of Execution and Asset Seizure.”

Yet even a quick glance revealed that something was not right. First, the press release was not worded in the way a company — even one that has stumbled with the English language — communicates with shareholders. The whole press release seemed to be aimed at striking fear in ETLT shareholders, based on a threat that can best be described as a meaningless sideshow.

There were other red flags. The release was issued on Market Wire. There’s nothing wrong with Market Wire; its as good as any other wire service. But its not the one that Eternal Technologies uses. Every Eternal Technologies press release this year has been issued on Business Wire. And the bogus press release listed Angela Junell as the contact, instead of ETLT’s real IR contact, Annie Shi of Heron Public Relations Group.

Since I was 99% sure that the negative release was a hoax, as I posted in the comments here, I bought a lot of ETLT shares into the plunge this morning. Sure enough, later in the morning, Western Securities posted what it called a “Clarification.” It didn’t explain that the former release was fraudulent, but it at least correctly attributed Western Securities as the source of the ridiculous drivel.

To ETLT management I have this advice: you may not agree with the lawsuit, but either post the bond or pay up. For only $730,000 you can probably add 50% to your current market cap. and ensure your ability to continue to access U.S. capital markets. That’s a very small price to pay, so do it and move on.

DISCLOSURE: Long ETLT.OB.