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SEC sues 'Tokyo Joe' for securities fraud
Web-based guru accused of scalping, other violations
By William L. Watts, CBS MarketWatch
Last Update: 1:47 PM ET Jan 5, 2000
See: NewsWatch
WASHINGTON (CBS.MW) -- Yun Soo Oh Park, the self-proclaimed
day-trading guru and Web site operator known as "Tokyo Joe," faces civil
fraud charges accusing him of defrauding members of his Society Anonyme
stock-picking service, the Securities and Exchange Commission said
Wednesday.
In a complaint filed in federal court in Chicago, the
SEC said Park, a New York resident, engaged in
scalping, illegal touting and lying about his
performance record.
The SEC said Park and Societe Anonyme charged
members up to $200 a month for Park's stock picks
and other investment advice. Meanwhile, Park
allegedly misled members or lied to them about his
positions in the stocks he was recommending.
According to the SEC, Park was contemporaneously
selling the same stocks he was recommending that
Society Anonyme members to buy. In such cases,
Park allegedly bought the stock shortly before his
buy recommendation and then profited by selling the
stock into the buying flurry that followed his
recommendation, a practice known as "scalping."
The commission said Park posted "materially false
and misleading" performance results on his Web site
and also engaged in illegal touting.
"The Internet has witnessed the rapid growth of Web sites run by
self-proclaimed investment gurus. Today's action makes clear that we will
not tolerate fraudulent conduct or undisclosed conflicts of interest by those
peddling investment advice on the Internet," said SEC Enforcement Division
chief Richard H. Walker.
The SEC is seeking a permanent injunction against Park and Society
Anonyme, which is operated from Park's New York home, as well as
disgorgement of any ill-gotten gains and civil penalties. |
