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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,
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To: Anthony@Pacific who started this subject3/8/2001 3:56:08 PM
From: StockDung  Read Replies (1) of 122087
 
Lucent Trickster Convicted of Fraud for Posting Phony Warning


New York, March 8 (Bloomberg) -- A Texas day trader was convicted of stock fraud today for posting a phony profit warning for Lucent Technologies Inc. on an Internet message board.

After 4 1/2 hours of deliberations, a federal jury in New York convicted day trader Fred Moldofsky of stock fraud.

``Guilty,'' the jury forewoman said, as Moldofsky sat passively beside his public defender.

Moldofsky faces up to 10 years in prison on securities fraud charges for spreading false information on a Yahoo Inc. message board last year, in which he announced a quarterly earnings shortfall for Lucent. Prosecutors say the Houston man's posting was made to look like a PRNewswire press release, using language copied from a real warning by Lucent two months earlier.

Moldofsky's lawyers argued that he posted the phony warning because he believed Lucent executives were lying about earnings expectations, and that he never intended to deceive investors. Moldofsky made no money from his scheme and traded no shares after his posting.

Stock in the world's largest phone-equipment maker fell 3.6 percent after Moldofsky posted the warning 20 times, late on March 22 and on March 23. Shares in the Murray Hill, New Jersey-based company jumped after Lucent discovered the announcement and alerted investors.

Lucent shares rose 14 cents to $12.89 in afternoon trading.

Mar/08/2001 15:34 ET

For more stories from Bloomberg News, click here.

(C) Copyright 2001 Bloomberg L.P.
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