TV Commentator Smith Charged Over GenesisIntermedia Stock Picks
Feb. 7 (Bloomberg) -- A financial commentator who appeared on CNBC, CNN and Bloomberg Television was arrested on federal charges of failing to disclose that he received $100,000 cash from a telemarketing company whose shares he touted.
Courtney Smith, 53, was arrested at his Manhattan apartment today following a nine-count indictment from a federal grand jury, according to the U.S. attorney's office in Los Angeles. If convicted of all counts, he could face as much as 45 years in prison.
Smith promoted the stock of now-defunct GenesisIntermedia Inc. as a ``very hot speculative pick'' and ``very cheap from my perspective'' during television appearances from late 1999 to mid- 2001, according to the indictment. Unknown to viewers, Smith received cash and 72,000 shares in the company valued at $1.2 million.
Smith's recommendation of GenesisIntermedia as a ``Double Your Money Pick'' during a Feb. 25, 2000, appearance on CNBC Market Watch prompted the company's shares to rise 58 percent. The company reported losses of $8.2 million in 1999, $33.5 million in 2000 and $119 million in the first three quarters of 2001 before it shut down.
George Newhouse, Smith's attorney, didn't immediately return a call for comment. A message left on Smith's office voicemail wasn't immediately returned. Smith made his initial appearance today in U.S. District Court in Manhattan.
Van Nuys, California-based GenesisIntermedia sold the ``Ab- Twister'' exercise device and ``Men Are From Mars, Women Are From Venus'' relationship products through infomercials. The company was also attempting to place Internet kiosks in shopping malls.
According to the indictment, one of Smith's co-conspirators was a ``high-ranking officer and substantial shareholder'' at GenesisIntermedia who was not named.
To contact the reporter on this story:
Joyzelle Davis in Los Angeles joydavis@bloomberg.net and David Evans davidevans@bloomberg.net
To contact the editor responsible for this story:
Patrick Oster in New York poster@bloomberg.net
Last Updated: February 7, 2005 16:45 EST |
