Judge Deals Setback to 'Tokyo Joe,' Rejects Appeal
By JUDITH BURNS
June 6, 2000
WASHINGTON -- A federal judge dealt a setback to Yun Soo Oh Park, better known as "Tokyo Joe," rejecting his efforts to appeal a prior ruling allowing regulators to press fraud charges against the online stock picker.
U.S. District Court Judge Charles Kocoras last month rejected a motion to dismiss the Securities and Exchange Commission's fraud case against "Tokyo Joe" and his Societe Anonyme Corp.
Park's attorney responded by filing another motion requesting an appeal of the ruling. On Tuesday, Kocoras denied that request, paving the way for a trial later this year.
"We see the case as a simple fraud case," and will present it that way if it goes to court, said Thomas Szromba, senior trial counsel in the SEC's Chicago office.
The SEC sued "Tokyo Joe" in January, claiming he overstated his performance record, illegally touted stocks, and engaged in scalping, or selling stocks he was recommending that others buy.
A South Korean immigrant and former burrito vender, "Tokyo Joe" had an estimated 3,800 subscribers paying up to $200 a month to receive his stock picks, the SEC said, either through e-mail alerts or "members-only" areas of Joe's Web site, at www.tokyojoe.com.
Ira Sorkin, Park's New York attorney, casts the case in a different light, characterizing it as an attempt to regulate free speech and curb the flow of information on the Internet.
"The fact that he does this on the Internet is irrelevant," responded Szromba. He said Park is using a new medium to break old laws, including the anti-fraud provisions of federal securities laws.
Sorkin filed two counter-claims against the SEC, arguing that it would be unconstitutional for the agency to apply its investment-adviser registration provisions to Park and seeking to prevent it from doing so. Sorkin said Park can't be treated as an adviser since he gives only general advice that isn't tailored to individual clients.
"They have to respond to that," said Sorkin.
Szromba said the SEC will seek to dismiss Park's counter-claims. While the agency believes Park is an unregistered investment adviser, it isn't asking him register since he isn't required to do so, Szromba said.
A ruling on Park's counter-claims is expected shortly.
-By Judith Burns (202) 862-6692; judith.burns@dowjones.com
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Kinda old, but missed it.
Jack |
