JONATHAN LABED ALSO FOND OF CLASSICA GROUP
SEC Settles With Minor In Alleged Online Stock Scam - Government Activity
Sept 21, 2000 by Martin Stone
The US Securities and Exchange Commission (SEC) has reportedly settled a case against a New Jersey teenager who allegedly earned more than $272,000 in profit from an Internet stock fraud manipulation scheme.
A Reuters report named 15-year-old Jonathan Lebed as the alleged culprit and noted the youth agreed to the settlement without admitting to or denying the charges. Lebed agreed to repay the money he is said to have made plus interest for a total of $285,000, according the SEC, which added it was the first time the regulatory body had brought charges against a minor.
The report said that Lebed, of Cedar Grove, N.J., was 14-years-old when he bought a large block of a small, thinly traded stock, then touted the shares on Yahoo message boards. According to the SEC, he also traded stocks of several other companies in which he had taken a position. Reuters reported some of Lebed's postings included baseless price predictions and other false and/or misleading statements and, according to the SEC, the postings always caused the price and volume of the touted stocks to rise dramatically. The stocks involved include Manchester Equipment Co., Just Toys Inc., Yes! Entertainment Inc., Fotoball USA Inc., Man Sang Holdings Inc., West Coast Entertainment Corp., Havana Republic Inc., Classica Group Inc. and Firetector Inc., Reuters said.
Reported by Newsbytes.com, newsbytes.com .
07:45 CST
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