WOW JIM.UNBEL.(COMTEX)B: SEC Alleges Manipulation of Several Small Cap Stocks
B: SEC Alleges Manipulation of Several Small Cap Stocks
Ridgeland, MS, OCT 12, 2001 (EventX/Knobias.com via COMTEX) -- Wamex Holdings
Incorporated (OTC WAMX), Ramoil Management, Ltd. (OTC RAMO), and
Absolutefuture.com (OTC AFTI) have each been included in an SEC Press Release,
regarding alleged sptock manipulation schemes in theses company's publicly
traded securities.
The following is excerpted from the note put out by the SEC.
SEC PRESS RELEASE:
The Securities and Exchange Commission announced today that it filed four
complaints in the United States District Court for the Southern District of New
York alleging that in 1999 and 2000, Edward A. Durante and other defendants
manipulated the trading and generated artificial price rises in the stocks of
four companies: U.N. Dollars Corp., WAMEX Holdings, Inc., Ramoil Management,
Ltd., and Absolutefuture.com. Defendants reaped more than $30 million in illegal
profits by secretly controlling the trading in these stocks...
The filing of these complaints comes as part of coordinated investigations by
the staff in the Commission's Washington headquarters, New York and Boston
offices, and the United States Attorney's Office for the Southern District of
New York.
The complaints allege that Edward Durante, using the name "Ed Simmons,"
established an offshore finance company, Carib Securities Ltd., in 1999 to hide
his personal involvement in the manipulation schemes.
In particular, the complaints allege the following:
* Durante manipulated the market for U.N. Dollars Corp. ("UNDR"), driving the
stock price from one penny to over $1.25 before the Commission suspended trading
in UNDR securities in March 2000. He contracted with UNDR's former executives to
"stimulate" the company's stock price and trading volume, and in return,
received 10 million newly-issued shares, which gave him control of UNDR's public
float...
* Durante and Roger DeTrano, a New York-based stock promoter, gained control of
over 19 million shares of WAMEX Holdings, Inc. ("WAMX") with the assistance of
the company's executives. Durante drove the price for WAMX stock from $1.375 per
share to an all-time high of $19.50, and dumped 6.9 million WAMX shares into the
market for a $24 million profit, before the Commission suspended trading in WAMX
securities in June 2000...
* Durante entered into an illegal funding scheme with Ramoil Management, Ltd.
("RAMO"), in which RAMO provided a million shares of its stock to Durante's
offshore entities pursuant to sham consulting agreements. Durante had his broker
for the offshore accounts execute a series of manipulative public trades in RAMO
stock that moved RAMO's price from $7.0625 per share to an all-time high of
$20.00. Durante dumped 1.8 million shares of RAMO into the market, making
approximately $3.3 million...
* Durante and DeTrano entered into an illegal funding scheme with
Absolutefuture.com ("AFTI") pursuant to which AFTI provided 4.1 million shares
of its stock to entities controlled by Durante and DeTrano...Durante used those
shares, along with an additional 3.3 million shares which he purchased on the
market, to engage in manipulative trading activities, including matched orders
and illegal block trades, which increased AFTI's stock price from $0.21 per
share in December 1999 to $6.00 per share in March 2000, an increase of more
than 2,700 percent...
As a result of the conduct alleged in the complaints, Durante and his offshore
entities...are alleged to have violated the antifraud and registration
provisions of the securities laws. The Commission seeks permanent injunctions,
disgorgement of proceeds, prejudgment interest thereon, civil money penalties,
and officer and director bars against Durante et.al...
The Commission acknowledges the assistance of the United States Attorney's
Office for the Southern District of New York, the Federal Bureau of
Investigation, and the British Columbia Securities Commission in these matters |
