More on Asensio reports...they are having a conference call today if anyone wants to listen to this. Makes me ill myself. I am not long at the moment but my mom has a few shares.
Dreyfus Fund Manager Named in Chromatics Color Sciences Inc. Report
Citing Wrongdoing
PR Newswire - June 09, 1998 08:48
- Asensio & Co. research report cites a series of questionable transactions that harmed investors -
A new research report by Asensio & Company to be published today recommends a "strong sell" of Chromatics Color
Sciences, Inc., (OTC Bulletin Board: CCSI), upon findings that a series of questionable transactions led to losses for small
investors and at two Dreyfus mutual funds managed by Michael Schonberg.
Highlights include:
-- CCSI's technology claims are false;
-- CCSI's sales estimates and product claims are false;
-- CCSI sold 12.4 million shares at a discount to market to private
investors who then sold them to the public to reap massive gains;
-- Dreyfus fund manager, Michael L. Schonberg, bought 1.875 million shares
at market prices for the two Dreyfus funds he managed;
-- Investors Associates Inc., the agent for CCSI's IPO, had its licenses
revoked simultaneously by 20 states attorneys general, including New
York's Dennis Vacco.
Asensio & Company will conduct a conference call to discuss its report in detail today at 10.30 am (EST). Press are invited to
call: 888-680-5190
The complete text of the Asensio & Co. report (of 8 pages) will be published on the firm's website at noon today (EST):
asensio.com
For information contact:
Ben Trounson (extension 24) or Tory Hayes (extension 23) at: Emmanuel Kerr Kilsby: 203-406-8800
(PR NEWSWIRE) DJ: Asensio & Co.: Dreyfus Fails to Supervise Fund Manager's
DJ: Asensio & Co.: Dreyfus Fails to Supervise Fund Manager's Chromatics Stock
Purchases
NEW YORK, June 9 /PRNewswire/ -- The following statement was issued today by
Asensio & Company, Inc.:
On April 13, 1998 the Dreyfus Corporation announced the appointment of a new
"primary portfolio manager" for the Dreyfus Aggressive Growth Fund and the
Dreyfus Premier Aggressive Growth Fund ("the Funds"). It also announced
that the former manager, Michael L. Schonberg, would continue to serve as a
portfolio manager of both Funds. Mr. Schonberg was appointed senior equity
portfolio manager at the Dreyfus Corporation in New York on August 14, 1995.
Since then he purchased at least 1.8 million shares of Chromatics Color
Sciences Inc. (OTC Bulletin Board: CCSI) ("CCSI") for the Funds.
Today, Asensio & Company, Inc. released an institutional research report and
strong sell recommendation on Chromatics. The report clearly establishes
that Chromatics' stock has little or no economic value. In fact, we believe
that even the most novice analyst can readily recognize that the company has
no intrinsic value or potential to ever generate earnings. Yet over the
last two years Mr. Schonberg bought, held, added and still maintains a
completely disproportionate amount of Chromatics in the Funds.
Mr. Schonberg is a Chartered Financial Analyst with undergraduate and
graduate degrees from the Massachusetts Institute of Technology and over
twenty-two years of experience as a securities analyst. It is difficult to
believe that Mr. Schonberg had no knowledge of Chromatics' lack of
investment value or its fraudulent activities. Despite this clear evidence
of wrongful utilization of mutual investors' money, Dreyfus has attempted to
make Mr. Schonberg's replacement appear as a proper management action to
address the Fund's poor performance. To this date Dreyfus has failed to
provide forthright disclosures or restitution plans for investors who lost
money in this scheme.
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