SEC Alleges Fraud By Four In
Teletek Stock Payments
Scheme
Dow Jones Newswires
WASHINGTON -- The Securities and Exchange
Commission brought administrative proceedings
against four men who allegedly engaged in a stock
kickback scheme involving shares in Teletek Inc., a
marketer of long-distance calling services.
The SEC alleged that Steven Wertman, a New York
stock promoter; Robert Orkin, owner and principal
officer of now-defunct Florida broker R.B. Webster
Investments Inc.; Edward Donner, Webster's vice
president and compliance officer; and Earl David, a
New York immigration attorney, committed
securities fraud by engaging in a scheme in the
early 1990s in which Webster sold Teletek stock in
return for secret payments that weren't disclosed to
the broker's customers.
The SEC's order was issued Friday. Attorneys for
Donner and David declined to comment. An
attorney for Wertman couldn't be reached. Officers
at Teletek's principal office in Las Vegas didn't
return calls.
Michael Pasano, an attorney with the Zuckerman,
Spaeder law firm, who represents Orkin, said in a
telephone interview that it was ''disturbing that the
SEC chose to bring an administrative proceeding
against someone like Mr. Orkin who's out of the
business, who's company closed several years
ago, and where the underlying allegations will be
aired in a federal criminal trial this fall.''
He said Orkin has been charged with conspiracy,
securities fraud and mail fraud in the criminal
case, which he said would be ''vigorously
contested.''
''Surely the SEC has more culpable people to bring
proceedings against,'' Pasano said.
The SEC noted in its order that Wertman and
Donner have already pleaded guilty to criminal
charges brought in U.S. District Court in Nevada
which encompass securities fraud, and are
awaiting sentencing. |
