Why shouldn't we trade penny stocks from Boca, Vancouver, Denver or La Jolla or other penny stock capitals or vacation spots??
Because 99 percent are scams. Another one bites the dust:
Boca stock promoter faces fraud, laundering charges
By LESLIE HILLMAN
Web-posted: 12:06 a.m. Sep. 11, 1999
A federal grand jury in West Palm Beach indicted Boca
Raton stock promoter Gary Salter on charges of conspiracy,
securities fraud and money laundering, accusing him of
orchestrating a scheme to inflate the price of penny stocks
he owned so that he could then sell those shares.
Similar charges were also handed up against three Illinois
stockbrokers: John W. Deisch, Robert F. Curley and Bruce
E. Straughn.
Salter, 63, was charged with 14 counts of securities
fraud, 14 counts of money laundering and two counts of
conspiracy, the U.S. Attorney in Miami said Friday. If
convicted on all counts, Salter faces a prison term, a
$21.75 million fine and possible restitution.
The indictment continues a federal investigation that has
been doling out criminal charges since at least 1996. So far,
27 people have been charged.
Officials said Salter agreed to pay brokers secretly for
recommending their clients purchase certain stocks.
Payments to the brokers were equivalent to 15 percent of
the value of the stocks their clients bought.
Neither officials in the U.S. Attorney's office nor Salter
could be reached for comment.
Federal officials started closing in on Salter in 1996 after
a former employee, Harcourt Wiltshire, pleaded guilty to
conspiracy and agreed to cooperate with a federal
investigation. Officials then filed charges in 1996 and 1997
against several more stockbrokers who officials said
received bribes from Salter's operation, but both times
Salter avoided indictment.
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