Internet Analyst to Pay $1 Million in Settlement
A WSJ.COM News Roundup
A tree-trimmer who portrayed himself as a financial analyst agreed to
return more than $1 million in trading profits to settle stock-fraud charges
with the Securities and Exchange Commmission.
Stephen C. Sayre rose to prominence last year when he issued reports
over the Internet under the name of Independent Financial Reports. He
urged investors to buy shares in eConnect, a tiny San Pedro, Calif.,
software maker. Mr. Sayre said eConnect's stock, which traded for under
$1.50 at the time on the OTC Bulletin Board, would reach as high as $135
a share in a year's time. The SEC contends that Mr. Sayre neglected to tell
investors that he owned 177,000 eConnect shares and was selling them as
investors acted on his recommendation.
The SEC alleged in a case filed in April 2000
that Mr. Sayre collected more than $1.4
million in "illegal profits." In a settlement
announced Wednesday, Mr. Sayre agreed to
return more than $1 million in profits, plus about $76,000 in interest, and
pay $110,000 in civil penalties. Mr. Sayre, who didn't admit wrongdoing,
couldn't be reached for comment.
The terms of Mr. Sayre's settlement are harsher than for some others
charged with similar manipulation. Yun Soo Oh Park, better known as
"Tokyo Joe," settled similar charges with the SEC earlier this year and paid
$754,000 in returned profits and penalties.
An official at the U.S. attorney's office in Los Angeles said a criminal case
against Mr. Sayre, which was also filed last April, is still pending.
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