T-mex has the SEC on his trail.......
htttp://cbs.marketwatch.com/news/current/tokyo.htx?source=htx/http2_mw
SEC sues 'Tokyo Joe' for securities fraud
Web-based guru accused of scalping, other violations
By William L. Watts, CBS MarketWatch
Last Update: 3:09 PM ET Jan 5, 2000
See: NewsWatch
WASHINGTON (CBS.MW) -- Federal regulators filed civil fraud
charges Wednesday against Yun Soo Oh Park, the self-proclaimed
day-trading guru and Web site operator known as "Tokyo Joe," alleging
he defrauded members of his Society Anonyme stock-alert service.
In a complaint filed in federal court in Chicago, the
Securities and Exchange Commission 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
commonly known as "front-running." In legal
parlance, the practice is called "scalping," though
it's not to be confused with the trading strategy of
the same name.
The commission said Park posted "materially false and misleading"
performance results on his Web site and accused him of "illegally touting"
shares without disclosing that he had received stock from the issuer in
exchange for his recommendation.
Park's attorney didn't immediately return a phone call seeking comment.
"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...
......The End
There are several articles out about this in the WSJ,
NY Times, The Street.com and more........
Everyone has to "pay-up" some time!
Happy investing!
KZAP |
