The Truth comes out! ASTN is a maniped stock: Feds/Stock Fraud: 18 Defendants Face SEC Fraud Charges
2001-03-08 13:50 (New York)
(now what do you say lawyere boy?)
Among those charged are Hunter Adams, 33, and Michael Reiter, 31, who
authorities say are associates of the Gambino organized crime family. Other
defendants who allegedly played a large role in the fraud scheme include
Jonathan Winston, 35, Jason Cohen, 48, Gregg Adams, 26, and Robert Mangiarano,
27.
Eighteen defendants also face civil fraud charges filed by the Securities
and
Exchange Commission.
The companies whose securities were allegedly manipulated include Ashton
Technology Group Inc. (ASTN), EquiMed Inc. (EQMDE), IRT Industries Inc., Mama
Tish's Italian Specialties Inc. and National Medical Financial Corp. (NMFS).
Authorities said the scheme centered around the activities of brokers at
First United, which underwrote initial public offerings of at least two of the
stocks involved. Principals of the firm would maintain control over large
blocks of the stocks while using a variety of misrepresentations to push the
securities on customers, according to the indictment.
In one instance, brokers drove the price of Ashton stock up to $15.25 a
share
before allowing it to plunge to less than a dollar, authorities said. Similar
patterns were seen with some of the other stocks. In the end, thousands of
customers throughout the U.S. - some of them sophisticated investors - lost
tens of millions of dollars because of the fraud, according to Lynch, the
Brooklyn U.S. Attorney.
Lynch called the case "a striking example of the rigged investment
'opportunities' that are presented to the unsuspecting investing public by
'boiler room' operations."
New York State Attorney General Eliot Spitzer, who announced the charges
with
Lynch at a Brooklyn press conference, said: "This is really a case of life
imitating art - it's a combination of 'The Sopranos' and 'Boiler Room.'
Unfortunately, this isn't the movies or TV."
(MORE) DOW JONES NEWS 03-08-0 |
