You seem to know alot. Could you tell me which entity in the MOB on Wall Street Business Week article they were refering to?
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Here are some of the stocks that sources say have been the subject of payoffs
to brokers within the past few months. Company officials who could be reached
for comment denied knowledge of any payoffs.
COMPANY PRICE 52-WEEK
DEC. 1 HIGH
APPLETREE ART 3 3/4 10
AXXESS 2 1/2 8 3/4
HARVEST RESTAURANT GRP. 1 7/8 8 1/4
IMMEDIATE ENTERTAINMENT 4 3/4 7
JUNGLE STREET 4 1/8 7 1/2
LEGEND SPORTS* NA 8
SCOTTSDALE CIGAR 41 5/16 9 1/2
TCP RELIABLE 5 1/8 7 3/4
TELLURIAN 5 9/16 7 1/2
TTR 9 11/16 16 23/32
*Not trading
Anatomy of a 'Chop-Stock' Deal
Stock of XYZ Corporation is trading at $9.60 bid, $10 asked.
1. THE STOCK PROMOTERobtains 100,000 shares of ''cheap stock''--either issued overseas under Regulation S of the securities laws, or issued to insiders under Rule 144. The price: 25 cents a share, or $25,000.
2. STOCK PROMOTER sells the stock to the CHOP HOUSE at $9.60 a share, or $960,000.
3. COLD-CALLERS at the CHOP HOUSE sell the stock to the CUSTOMERS at $10 a share, or $1,000,000.
4. CUSTOMERS deliver $1,000,000 to CHOP HOUSE.
5. CHOP HOUSE delivers $960,000 to STOCK PROMOTER.
6. STOCK PROMOTER delivers the stock to CHOP HOUSE.
7. CHOP HOUSE delivers stock to CUSTOMER's account.
8. STOCK PROMOTER'S profits--$960,000 minus $25,000, or $935,000--are wired to an OFFSHORE BANK.
9. OFFSHORE BANK wires half the profits-- $467,000--to CHOP HOUSE's OFFSHORE BANK, or STOCK PROMOTER gives CHOP HOUSE its split of the profits in cash.
Are Brokers Being Paid Off to Sell These Stocks?
Here are some of the stocks that sources say have been the subject of payoffs
to brokers within the past few months. Company officials who could be reached
for comment denied knowledge of any payoffs.
COMPANY PRICE 52-WEEK
DEC. 1 HIGH
APPLETREE ART 3 3/4 10
AXXESS 2 1/2 8 3/4
HARVEST RESTAURANT GRP. 1 7/8 8 1/4
IMMEDIATE ENTERTAINMENT 4 3/4 7
JUNGLE STREET 4 1/8 7 1/2
LEGEND SPORTS* NA 8
SCOTTSDALE CIGAR 41 5/16 9 1/2
TCP RELIABLE 5 1/8 7 3/4
TELLURIAN 5 9/16 7 1/2
TTR 9 11/16 16 23/32
*Not trading
DATA: BW; BLOOMBERG FINANCIAL MARKETS
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