SEC Adds to Charges Filed Against Men in Fraud Case
By a WALL STREET JOURNAL Staff Reporter
WASHINGTON -- The Securities and Exchange Commission filed an
amended complaint listing additional allegations of Internet-based stock
manipulation against two men who were named in a fraud complaint late
last year involving defunct printing company NEI WebWorld Inc.
The SEC alleges in a complaint filed in U.S. District Court in Los Angeles
that Arash Aziz-Golshani, 23 years old, of Beverly Hills, Calif., and
Hootan Melamed, 24, of Pomona, Calif., engaged in a manipulation
scheme on the Internet relating to 11 additional stocks.
In separate criminal proceedings related to the
SEC's original December complaint, Los
Angeles prosecutors said Messrs.
Aziz-Golshani and Melamed pleaded guilty to
charges that they posted untrue information about NEI on Web sites in a
bid to drive up the company's stock price. They had purchased shares in
the company before their postings and sold after the price rose, the
complaint said. NEI, which was based in Dallas, hasn't been accused of
any wrongdoing.
Since the original complaint was filed, the SEC learned of evidence
showing the two defendants allegedly manipulated the shares of other
companies from April to October last year. As a result of his trading, Mr.
Aziz-Golshani made $321,000, in addition to the $153,000 from his
trading in NEI, the SEC said. Mr. Melamed had gains of nearly $2,000, in
addition to the $211,000 from NEI.
Michael Missal, Mr. Aziz-Golshani's attorney, said, "It's unfortunate the
SEC has expanded its charges." He added that he and his client "expect to
have the matter resolved in the appropriate manner." James Sanders, Mr.
Melamed's attorney, couldn't be reached for comment. |
