Re: 11/16/00 - Bergen Record: N.J. won't charge teen in stock case
N.J. won't charge teen in stock case
Thursday, November 16, 2000
The Associated Press
CEDAR GROVE -- The New Jersey teenager who paid $285,000 to settle civil charges of stock manipulation brought by the Securities and Exchange Commission will not face state charges, the state Attorney General's Office said Wednesday.
State authorities are not considering civil or criminal charges against Jonathan G. Lebed, office spokesman Paul Loriquet said.
Officials at the SEC and the U.S. Attorney's Office in Newark declined to comment, as is their policy, on whether a federal criminal case is being considered against Lebed.
Lebed, 16, and his lawyer have maintained that he did nothing wrong. On Wednesday, the boy's mother referred questions to attorney Kevin Marino of Newark.
"It was an appropriate resolution of the case in this very gray area of the law," said Marino. "I am very gratified the state has decided not to pursue criminal charges against Jonathan Lebed, because I am confident he committed no crime."
In September, the junior at Cedar Grove High School in Essex County became the youngest person penalized by the SEC, which alleged a "pump and dump" scheme.
It charged that Lebed bought large blocks of nine low-priced stocks from Aug. 23, 1999, to Feb. 4, 2000, said favorable things about them on Internet financial message boards, watched the prices rise, and then sold -- all within 24 hours. He used this method twice with two stocks.
His profits on those 11 trades totaled $272,826. The $285,000 settlement reflects prejudgment interest of $12,174.
Lebed reportedly cleared about a half-million dollars from other online trades. The SEC has declined to say how much Lebed made, but it has said the boy made thousands of trades.
His mother said he bought the family a Mercedes-Benz sport-utility vehicle costing about $42,000.
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