out of june 14 globe & mail
Indicted stock trader Valentine launches on-line travel service
By JACQUIE McNISH AND ANDY HOFFMAN
UPDATED AT 8:23 PM EDT Saturday, Jun. 14, 2003
Indicted stock trader Mark Valentine, who made and lost a fortune backing emerging technology companies, is back in business with the launch of an Internet service for stranded Canadian travellers.
In an e-mail sent to friends in April, Mr. Valentine announced the formation of SOStravelclub, which he described as an on-line club offering travel discounts, air ambulance and other emergency services for a "cheap" price of $69.95.
The former chairman of failed Toronto brokerage Thomson Kernaghan & Co. Ltd. described the new company as one of two ventures that he has been working "non-stop on" since he was arrested last August by the FBI on two counts of securities fraud.
"It has been a most interesting nine months to say the least," Mr. Valentine's e-mail said. "However as in everything in life, it must go on. As I am sure many of you know I am always the optimist and as such I conduct my life always thinking tomorrow will be a better day."
Mr. Valentine, 33, is currently residing in Toronto, where he is awaiting clearance from the U.S. Homeland Security Office to travel to Florida to prepare for his court case, which has been delayed until at least the end of the year.
When contacted by phone yesterday, he declined to discuss details about SOStravelclub or the other unnamed venture he is pursuing.
"I never wanted attention when I was doing my business at Thomson Kernaghan. I never spoke to the media then . . . All I'm doing is continuing to live my life and keep a low profile."
Mr. Valentine's lawyer Joseph Groia confirmed yesterday that Mr. Valentine was the author of the e-mail, but he declined to comment on the new company. Shortly after Mr. Valentine was contacted by a reporter, SOStravelclub's Web site was apparently suspended. A Toronto lawyer who is listed on the Internet as the Web site's domain representative could not be reached.
The travel service is Mr. Valentine's third business pursuit since he was suspended last summer from Thomson Kernaghan and slapped with allegations of improper trading and a trading ban by the Ontario Securities Commission.
In July, two weeks after the OSC's ban, Mr. Valentine began trading on the Chicago Mercantile Exchange, a move that triggered a regulatory hearing and lengthier trading ban.
In August, he flew to Germany to discuss with other investors the possibility of investing in a brokerage on Frankfurt's controversial penny stock market. It was during that trip that he was arrested and later charged by the FBI with two counts of securities fraud.
Mr. Valentine's e-mail described SOStravelclub as a project he is launching in "conjunction with" on-line travel discounter itravel2000.
The message described itravel2000 as "one of my [venture capital] investments."
Anthony James, vice-president finance with itravel2000, said Mr. Valentine is not an investor in the company. Mr. James said Thomson Kernaghan helped "facilitate" the sale of itravel2000 debentures in April, 2000.
Andy Hoffman is a Report on Business Television reporter |
