WASHINGTON (AP) — Continuing their ''sweep'' against Internet investment scams, federal securities regulators announced Thursday they had charged nine people and four companies with fraud online.
*****I hope this was not posted here to infer that "someone" here Is guilty of fraud.....most of all law is "intent". Stating the financial condition of a company and/or the number of outstanding shares and public float...calling the company and having someone hint to you that news will be released in a few days or so.....
then posting that you feel it is a good stock....does not in anyway
shape or form constitute fraud.
The Securities and Exchange Commission alleged separate schemes that deceived investors around the world by fraudulently promoting stocks in Internet junk mail, online newsletters, Internet message board postings and Web sites.
****Good ...too many good people have been hurt by this garbage
the word "fraudulently" used here means that it was the "intent"
of the promoter to lie and falsify information about a stock or a company for the sole purpose of driving the stock price up.
As long as the "truth" is posted here, or anywhere, about the company or stock, than it is not concidered "fraudulently" promoted.
The market watchdog agency made the allegations in a civil lawsuit and three administrative actions. All four cases involved people allegedly promoting stocks without disclosing they were paid for it.
***This is not the way people operate here...
The lawsuit also involved an alleged ''pump and dump'' scheme, in which promoters pushed up a stock's price by making false claims about the company and later sold their own shares to cash in on the artificially high price.
****the key to this is the phrase "false claims". Revealing that a company, in your opinion, has promise, AND why you feel that way
along with "facts" about the company...is the heart and sole of SI...it is also not illegal
The accused individuals, including one current and two former stockbrokers, promoted more than 56 publicly traded companies and received more than $450,000 for doing so, the SEC said. The companies are fairly small and their stocks are relatively cheap, risky and thinly traded.
****they should be forced to give all the money back to the defrauded investors
The agency ''continues to be vigilant in its efforts to stamp out fraud on the Internet,'' said SEC Enforcement Director Richard Walker. ''If you're trying to cheat investors on the Internet, we are watching and we will catch you.''
***Big difference between "trying to cheat" investors and "picking" a stock that you like and feel will grow in value.
The actions were the latest moves in a nationwide crackdown against investment fraud in cyberspace started by the SEC in October. The agency has been targeting people promoting stocks over the Internet who don't disclose they are paid to do so.
****This is really simple 2 things ...is there fraud here??? NO!
The targeted people, as mentioned above, would exclude "someone" I know on this board
Such stock promotions are known as ''touting.'' Stock touting is not
illegal in and of itself, but any compensation received from the companies must be fully disclosed, including the nature and amount of payment in cash or stock.
***does not apply here folks
In the new lawsuit, the SEC alleged that P. Joseph Vertucci, an insider of Interactive MultiMedia Publishers, and Bruce Straughn, a former Chicago stockbroker, manipulated the company's stock price in a ''pump and dump''scheme. Vertucci and Straughn also are accused of arranging for publications to tout Interactive MultiMedia, a software development company, on the Internet and elsewhere. They allegedly
paid the touters with cheap or free company stock, which the touters failed to disclose. Interactive MultiMedia's stock later collapsed and the company ceased operating, the SEC said. The agency sued Vertucci, Straughn and five other people allegedly involved in the scheme, seeking unspecified civil penalties and repayment of illegal profits from some of them. Vertucci denied any wrongdoing, saying he was deceived when he bought Interactive MultiMedia. The SEC ''missed the point. ... What they're doing is wrong,'' he said in a telephone interview. Straughn said he hadn't seen the details of the case yet and had no immediate comment.
In the three administrative actions, the SEC alleged that:
— Scott Flynn and his company, Strategic Network Development Inc., used Internet junk mail and a Web site called Stockprofiles.com to disseminate favorable information about several companies without fully disclosing his payments from the companies.
Flynn, a former stockbroker convicted of securities fraud in another case, is said to have received at least $183,200 in cash and 322,500 shares of stock from at least 10 of the companies.
Flynn could not immediately be reached for comment.
—Hastings Communications, the owner and publisher of Stockprofiles.com, promoted the companies without fully disclosing its payments from the same companies.
In a settlement with the SEC, Hastings Communications agreed to refrain from such violations in the future. The company neither admitted nor denied wrongdoing.
—Max Ramras, through a business named RCG Capital Markets Group Inc.,
touted the stocks of nine companies on a Web site without disclosing payments in cash and stock options from the companies. RCG Capital Markets allegedly made more than $100,000 from the companies since November.
Don Wall, an attorney in Phoenix for Ramras and his company, did not
immediately return a telephone call seeking comment.
The Flynn and Ramras cases will be heard by SEC administrative law judges, who will determine whether the allegations are true and whether any remedial actions should be imposed.
****OK folks get the picture?? PAID PROMOTION WITHOUT DISCLOSURE..
That means paid promotion WITH disclosure is legal if a disclaimer is posted.......but paid promotion one way or another is not the mode of operation here
———
EDITOR'S NOTE: The SEC advises investors to read its Cyberspace Alert before buying any investment promoted on the Internet. The publication is available on the investor assistance and complaints link of the agency's Web site at <http://www.sec.gov/>www.sec.gov. It also is available by calling
1-800-SEC-0330.
Investors also are urged to report suspicious investment offerings to
enforcement@sec.gov.
*****SUSPICIOUS INVESTMENT OFFERINGS...does not mean a person or persons who "pick" stocks they like....SO you sorry @$$ed losers don't even think of wasting my tax dollars complaining to the SEC...they will laugh in your face
nuff said
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