SEC files complaint against stock picker
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ORLANDO, Fla. (AP) -- The Securities and Exchange Commission filed a complaint Monday against a man who reportedly passed himself off as an impartial stock picker but actually was being paid by the companies he pitched. The regulatory body has asked a federal judge to make Steven Samblis disclose in his magazine "New Stock" and unsolicited e-mails that he was paid as much as $20,000 by two companies he touted.
The SEC also is seeking the return of the profits Samblis made and civil penalties, which could amount to as much as $100,000 per violation.
"Here we have a guy who is passing himself off as an impartial source of information but the fact is he has been paid to make the recommendations," said Christian Bartholomew, senior trial lawyer for the SEC's Miami office. "This isn't a gentleman who is unfamiliar with the securities law and we consider this violation to be serious."
In an e-mail sent out in September, Samblis announced the start of his magazine and called himself "one of the nation's leading experts on Initial Public Offerings," according to the complaint. He also said his past picks had averaged a return of 38.78 percent annually.
According to the complaint, Samblis received $10,000 each to promote Nevada-based Associated Technologies and Delaware-based LEC Technologies in the glossy magazine he published and in e-mails he randomly sent out.
Samblis mailed out 25,000 copies of his September issue promoting Associated Technologies that included tear-out cards for readers to mail in for more information on the company.
Twenty-five thousand copies of the fall issue recommending LEC Technologies were mailed out in October. They also included tear-out cards.
Both companies ended their contracts with Samblis in October.
Samblis couldn't be reached by telephone at his Altamonte Springs office and he has an unpublished residential phone number.
(Copyright 1998)
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