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The Mobile Virtual Network Operator (MVNO) market has been getting overcrowded lately, and one me-too company called Xero was rumored to have raised $300 million to start a business offering the free ad-supported mobile service.

What raises red flags here? First, that $300 million figure is unbelievably high for a company that's not really doing anything new, second, most of the executives at the company came from that spectacular failure of a gaming device company, Gizmondo. And third, the company just pulled off a "reverse merger," a tricky technique that's often a sign of some sort of pump-and-dump scam going on. Caveat emptor.

Sketchy New Mobile Firm Does Sketchy Reverse Merger [techdirt]