Marlboro man indicted in Internet fraud case
Published in the Asbury Park Press 10/08/04
By JAMES A. QUIRK
STAFF WRITER
NEWARK -- A New Jersey Internet stock promoter from Marlboro was indicted yesterday for failing to disclose that he was earning money from Global Datatel, Inc., the very firm he promoted to the public, U.S. Attorney Christopher J. Christie said.
According to the indictment, Stuart Bockler, 52, controlled and operated three corporate public relations companies and a Web site: International Market Advisors, Inc.; International Market Call Inc.; Imcadvisors, Inc.; and www.imcadvisors.com.
In January 1999, Bockler and IMA executed a consulting deal with Global, in which Bockler agreed to write and distribute Global investment reports that detailed Global's products, management results, trading history and projected stock performance results.
For one count of undisclosed compensation, Bockler faces a maximum penalty of up to five years in prison and a $250,000 fine, or twice the gross proceeds of the fraud, or twice the loss to any victims.
The indictment is not connected to the ongoing investigation surrounding the murders of Albert Alain Chalem and Maier Lehmann, former stock traders who promoted shares of Global Datatel. Prosecutors say between five to 10 people involved in business deals with the two victims may have arranged to kill them.
Chalem and Lehmann were found shot execution-style on Oct. 25, 1999, in Chalem's home in Colts Neck. The Monmouth County Prosecutor's Office has said the two dead men were killed as a result of a business deal gone awry and that they were promoting stocks on the Internet in classic pump-and-dump schemes.
On Oct. 13, 1999, Bockler distributed a Global investment report to the public that promoted the company. Bockler posted the report to the IMA Web site and sent roughly 30,000 e-mails directing people to view the report. The report contained a "strong buy" recommendation for Global, and projected their stock at $60-75 for the long term and $30-45 for the short.
But according to the indictment, the report did not contain a disclosure of Bockler's compensation from Global, or the fact that Bockler was paid about $175,000 from the sale of 18,750 free trading Global shares he had received from the company in early 1999.
Bockler is also charged with disseminating the Oct. 13, 1999 report, knowing he had received and sold the Global free trade shares, as well as 200,000 restricted shares.
On Oct. 13, 1999, those 200,000 shares, based on a closing price of $6.50, were worth about $1.5 million. Bockler also failed to mention this to the public, the indictment charges. These failures to disclose information of compensation violate a facet of federal securities laws known as "anti-touting" provisions.
Federal authorities did not arrest Bockler. His indictment is related to Allen Barry Witz, 63, a Beverly Hills lawyer who in April pleaded guilty to conspiracy to commit securities fraud in connection with Global Datatel, Inc. and its Latin American subsidiary, eHola.com Online Service Network.
Witz identified two men by initials only -- J.L. of Clifton and S.B. of Marlboro -- who conspired in the scheme to inflate the perceived value of Global stock.
Bockler is expected to be arraigned on the one-count indictment within the next two weeks before U.S. District Judge Joseph A. Greenaway, Assistant U.S. Attorney Mauro M. Wolfe said in a prepared statement.
Christie yesterday credited the FBI, IRS and U.S. Postal Inspection Service for their assistance in the case. The investigation into business surrounding Global is ongoing, he said. |
