A Juicier Version: WAMEX execs arrested, SEC halts stock
WAMX
Shares issued 0 close $0
Wednesday Jun 14 2000
by Brent Mudry
Trading in shares of WAMEX Holdings Inc. was abruptly halted by the United States Securities and Exchange Commission on Wednesday, in conjunction with the predawn arrests of company chief executive Mitchell Cushing and vice-president Russell Chimenti at their homes in the New York area. Mr. Cushing was arrested in Manhattan, while Mr. Chimenti was arrested in Brooklyn, both on criminal charges of securities fraud.
WAMEX shares last traded at $1.62 on Tuesday, down from a peak of $22.50 in late February. (All figures are in U.S. dollars.)
With both men in custody before markets opened, the SEC imposed a 10-day trading halt of shares of WAMEX on the OTC Bulletin Board, citing questions about the accuracy and adequacy of publicly disseminated information. The SEC notes that despite its public claims, WAMEX is not lawfully authorized to operate its touted Alternative Trading System.
The SEC also questions the company's claims about funds purportedly raised from private investors. "In addition, recent market activity in WAMEX securities may be the result of manipulative conduct or other illegal activity," states the regulator.
WAMEX claimed on April 25 that it closed a $6.9-million financing with an unidentified investment group, two months after it claimed to have finalized the terms of "funding through a U.S. consortium with a Swiss financial institution."
The arrests come as WAMX gears up for its purported Fourth of July launch of its new electronic ATS, to mark "Independence Day for Investors." In a pair of press releases moved on newswires a few hours before the arrests, WAMX announced its launch of CNBC advertising campaign on Wednesday and an investor conference call set for June 20.
"The functionality of the Alternative Trading System will be the topic of discussion with Mitchell Cushing ... WAMEX's revolutionary trading platform provides investors 24-hour access seven days a week to trade all registered securities at low cost with anonymity across all continents, in any major currency, in nine different languages, and with a link to trade all major exchanges," states WAMEX. |
