Re: Stockinvestor.com and Future Superstock
SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15958 / October 27, 1998
S.E.C. v. The Future Superstock, Inc. and Jeffrey C. Bruss, Docket No. 98C6772 (U.S.D.C., N.D.Ill.)
The Securities and Exchange Commission announced the filing of a Complaint in the United States District Court of the Northern District of Illinois, on October 27, 1998, seeking a permanent injunction, disgorgement, civil
penalties and other relief against The Future Superstock, Inc. ("FSS") and Jeffrey C. Bruss.
The Complaint alleges that since the spring of 1996, an Internet newsletter called The Future Superstock, which is published by FSS and researched and written by Bruss, has recommended to the newsletter's more than 100,000
subscribers and to visitors to the newsletter's web site (www.futuresuperstock..com) the purchase of approximately 25 microcap stocks which were predicted to double or triple in the next three to twelve months. In most instances, the prices of recommended securities increased for a short period of time after a recommendation was made in The Future Superstock, after which the prices of those stocks dropped substantially. It is alleged that in making these recommendations FSS and Bruss have violated the federal securities laws by failing to provide adequate disclosure in a number of significant areas: (1) for over two years neither the newsletter nor the web site disclosed that Bruss or FSS received compensation, in cash and stock, from nearly every issuer profiled; (2) FSS and Bruss have failed to disclose that in many instances they have sold stock in the issuer shortly after the dissemination of a recommendation in The Future Superstock caused its price to rise; (3) FSS and Bruss have represented in the profiles that they performed independent research and analysis in evaluating the issuers profiled by the newsletter when, in fact, little, if any, research was conducted in preparing the profiles; and (4) the statements made in the profiles regarding the success of past stock picks made in The Future Superstock have been false and misleading.
It is alleged that by engaging in such conduct FSS and Bruss have violated Sections 17(a) and 17(b) of the Securities Act of 1933 and Section 10(b) of the Securities Act of 1934 and Rule 10b-5 thereunder.
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Note: The claim regarding Internic data relating Future Superstock and Stock Investor is no longer true (see Internic data below). I cannot independently confirm that it was true at the time of the Stock Detective report over a year ago (9/98), though one of the futuresuperstock.com domain servers is currently 207.32.155.67.
In Other News...
One of the Internet's most notorious stock promotion sites, Future SuperStock, appears to be re-inventing itself, ready to take in a fresh flock of eager, but wary, investors. According to records at Internic, a registry for Internet IP addresses, Future SuperStock and Stock Investor. Com share the same numeric address - 207.32.155.67 and 207.32.155.68. The two companies also share a P.O. box in Chicago, according to Internic files. A coincidence? Not likely. Calls to the phone number listed for Stock Investor.com's administrative contact were for a cell phone not in service. Stock Detective had a little better luck when we called Future SuperStock's listed contact. A receptionist answering the phone said all questions about the relationship between Future SuperStock and Stock Investor.com would have to be answered to Jeff, as in Jeff Bruss, Future SuperStock's kingpin. Bruss was not available for comment when we called. For an expansive list of paid promoters, check out The List!
financialweb.com
Registrant:
The Future Super Stock (FUTURESUPERSTOCK-DOM)
P.O. Box 768
West Chicago, IL 60185
Domain Name: FUTURESUPERSTOCK.COM
Administrative Contact:
Administrator (ADM691-ORG) admin@FUTURESUPERSTOCK.COM
630-232-9603
Fax- 630-232-9605
Technical Contact, Zone Contact:
Admin (AD837-ORG) admin@FUTURESUPERSTOCK.COM
630-232-9603
Billing Contact:
Admin (AD837-ORG) admin@FUTURESUPERSTOCK.COM
630-232-9603
Record last updated on 01-Apr-1998.
Record created on 19-Jan-1996.
Database last updated on 27-Oct-1999 10:11:19 EDT.
Domain servers in listed order:
DNS1.INTERNETSITE.COM 207.32.155.71
DNS2.INTERNETSITE.COM 207.32.155.67
networksolutions.com.
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(Note from Janice):
Note that the StockInvestor domain was created on 21 February 1997, so it must originally have been registered by someone else. Moos only entered the picture earlier this year. His own two domains were registered in March:
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Moos Gabor (MG711-ORG) gabriel@STOCKINVESTOR.COM
Web Distribution Kft.
Jozsef Nador ter 9.
Budapest, 1051
HUNGARY
36-12667918
Fax- 36-12667920
Record last updated on 22-Mar-1999.
Database last updated on 27-Oct-1999 10:11:19 EDT.
Registrant:
web distribution kft. (WEBDISTRIBUTION4-DOM)
Jozsef Nador ter 9.
Budapest, 1051
HUNGARY
Domain Name: WEBDISTRIBUTION.NET
Administrative Contact, Technical Contact, Zone Contact:
Gabor, Moos (MG12841) gabriel@STOCKINVESTOR.COM
+36-1266-7917 (FAX) +36-1266-7920
Billing Contact:
Gabor, Moos (MG12841) gabriel@STOCKINVESTOR.COM
+36-1266-7917 (FAX) +36-1266-7920
Record last updated on 22-Mar-1999.
Record created on 22-Mar-1999.
Database last updated on 27-Oct-1999 10:11:19 EDT.
Domain servers in listed order:
NS.STOCKINVESTOR.COM 195.228.200.13
NS2.STOCKINVESTOR.COM 195.228.200.14
Registrant:
web distribution kft. (CENTRAL-NET4-DOM)
Jozsef Nador ter 9.
Budapest, 1051
HUNGARY
Domain Name: CENTRAL-NET.NET
Administrative Contact, Technical Contact, Zone Contact:
Gabor, Moos (MG12841) gabriel@STOCKINVESTOR.COM
+36-1266-7917 (FAX) +36-1266-7920
Billing Contact:
Gabor, Moos (MG12841) gabriel@STOCKINVESTOR.COM
+36-1266-7917 (FAX) +36-1266-7920
Record last updated on 18-Mar-1999.
Record created on 18-Mar-1999.
Database last updated on 27-Oct-1999 10:11:19 EDT.
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networksolutions.com |
