Never Mind: "Article 3 of 38 Lexington Cap/NASD -2: For Investor Fraud, Impeding Scrutiny 11/02/98
Dow Jones News Service
(Copyright (c) 1998, Dow Jones & Company, Inc.)
WASHINGTON (Dow Jones)--NASD Regulation Inc. censured and fined
Lexington Capital Corp., New York, $100,000, and its chief executive
and president, Alan Michael Berkun, $150,000, for collaborating to defraud investors and impeding regulatory scrutiny.
In a press release Monday, NASD Regulation said Lexington Capital ,
which is now known as Preston Langley Asset Management, and Berkun
were also ordered to pay more than $200,000 in restitution and interest to nearly 200 investors.
Specifically, Lexington Capital and Berkun were charged with violating
the federal securities laws by, among other things, selling thousands of shares of a penny stock, U.S. Bridge Corp., to nearly 200 investors without making the required disclosures and determining if the investors were suitable to purchase those securities.
The complaint, which was filed by the NASD Regulation's New York
District office, also alleged that Lexington Capital and Berkun charged investors more than $100,000 in fraudulently excessive markups in connection with an unregistered public distribution of 100,000 shares of Crown Laboratories Inc. (CLWB) common stock.
NASD Regulation said Berkun was also censured and barred as a general
securities principal, while another former employee and broker, Joseph
Marc Blumenthal, was censured, barred and fined $100,000.
NASD Regulation also charged that Lexington Capital , acting through
Berkun and others, falsified the firm's books and records to conceal the
fact that Blumenthal solicited and effected more than 300 transactions with
investors while not properly registered with NASD Regulation and several
states.
(END) DOW JONES NEWS 11-02-98
03:50 PM |
