SEC Charges Minnesota Man With Stock Fraud-
By Judith Burns
Dow Jones Newswires
Wednesday February 19, 10:15 AM
WASHINGTON -- Securities regulators filed a lawsuit against a Minnesota man who allegedly used mass e-mail spam to commit stock fraud. Samuel Meltzer, 37 years old, of St. Paul, Minn., operated under at least 30 different assumed identities online to push penny stocks, the Securities and Exchange Commission alleged in a complaint filed in federal court in Brooklyn, N.Y.
Mr. Meltzer claimed to recommend investments based on his own research when he was touting stocks he was paid to promote, the SEC said. The SEC also claims Mr. Meltzer included false and misleading information about the stocks in his e-mails and Web sites.
Regulators estimate Mr. Meltzer received about $160,000 in stock and cash to promote a dozen or more stocks from 1998 to 2001. The SEC is seeking a court order that would force Mr. Meltzer to stop the alleged fraud, return his fees, pay a fine and be barred from the penny-stock business.
Stocks promoted by Mr. Meltzer include CityView Energy Corp., Bach-Hauser Inc., Envirokare Tech Inc. and Silk Botanicals.com Inc., according to court documents. The companies weren't sued by the SEC in connection with the alleged scheme.
Mark Schonfeld, an associate regional director in the SEC's New York office, said the suit shows the SEC's willingness to target those who disseminate fraudulent information, including through high-volume e-mail spam.
Mr. Meltzer's attorney, Daniel Boivin, said Mr. Meltzer's e-mails and Web sites included a disclaimer that he was paid to promote stocks. "Sam is a young guy who thought he did everything right," said Mr. Boivin. "He provided full disclosure." Mr. Boivin declined further comment, saying he hadn't seen the SEC's lawsuit against Mr. Meltzer. |
