SEC Alleges Fraud By Two Internet Stock Promoters-A federal court judge on Tuesday agreed to grant a temporary restraining order against two men who allegedly used the Internet to fraudulently promote shares in dozens of microcap stocks.
Named in the Securities and Exchange Commission case are Stephen Marek, 53 years old, known online as "BigProfitNews" and "Bulls-Eye Stocks," and Dominic
Roelandt, a 22-year-old Belgian who uses the name "Coldstocks."
The SEC claims the men touted stocks in 35 microcap companies to thousands of
investors through free e-mail newsletters and on Internet Web sites. However,
exactly how many of those investors followed the advice isn't clear.
Online messages contained false and misleading statements about Marek's and
Roelandt's track record for stock picks and didn't adequately disclose the fact
that both men were paid to promote the stocks and planned to sell their own
holdings after issuing a "buy" recommendation, the SEC added.
"Typically, the stock would rise after their touts and they would sell into
those touts," said Donald Hoerl, an associate regional administrator in the
SEC's Denver office.
Roelandt reaped $41,958 on his stock sales, and Marek pulled in $100,835 in
profits, the SEC claimed.
Stocks recommended by the promoters include Canceroption.com Inc. (CAOPE),
Rockport Healthcare Group Inc. (RPHL) and Smartire Systems Inc. (SMTR),
according to documents filed in federal court. The companies themselves weren't
charged with any wrongdoing in the SEC complaint.
The U.S. District Court in Phoenix agreed to an SEC request for a temporary
restraining order that bars the two men violating from federal securities laws,
freezes Marek's assets and requires him to account for and repatriate funds.
Marek, formerly of Salome, Ariz., now lives near Victoria, Canada, and the
SEC credited the British Columbia Securities Commission for its assistance in
the case.
Roelandt's whereabouts aren't known, according to the SEC. Neither Roelandt
nor Marek are believed to be represented by attorneys and the two couldn't be
reached directly for comment. |
