We spoke with this gentlemen a few months back, and he mentioned how he was going to trade penny stocks and make it big (the dream), we advised him that he will most likely lose his shirt since millions try penny stocks for the lure of quick gains, but don't understand the risk involved or simply know how to trade to begin with.
Long story short, this guy got smoked because of a penny stock that he bought with out any research and now its a "scam", no one told him to buy it. He is no one to blame and no one else.
Don't trade Penny stocks or you will end up losing your shirt at some point.