drbailey, no that wasn't Zeev, didn't you hear the sound of scrambling feet in the background, that was the sound of shorts rushing to cover before the April news releases. But here's an item:
Day-Trader Arrested for Bogus Lucent News
By Gail Appleson, Law Correspondent Mar 30 5:54pm ET
NEW YORK (Reuters) - A securities day-trader who allegedly posted a bogus press
release on the Internet last week that led to a drop in the price of Lucent Technologies
Inc.'s (LU.N) shares was arrested on Thursday and charged with securities fraud, the U.S.
attorney's office said.
Fred Moldofsky, 43, was to be presented in federal court in Houston, Texas, on the
charges that were filed in Manhattan federal court, prosecutors said. If convicted he faces
a possible maximum sentence of 10 years in prison and a fine of $1 million.
The Securities and Exchange Commission also filed a related civil suit against Moldofsky
in Manhattan federal court.
The complaint said that Moldofsky posted the fraudulent press release, which stated that
Lucent Technologies expected an earnings shortfall, on a Yahoo! Inc. message board last
Wednesday night.
The day after the posting, Lucent's stock price fell by as much as 3.6 percent,
representing a reduction of more than $7.1 billion in its market capitalization, prosecutors
said.
Lucent quickly assured investors it expected to meet expectations for second-quarter
earnings, dismissing rumors that had been fueled by the fake press release.
Valence should take a lesson on responsibility to shareholders. |
