Hi Pete, Mike & All ***SEC v. CHARLES HUTTOE, ET AL.,; U.S. v. THEODORE MELCHER, JR.
The Commission announced that Theodore R. Melcher, Jr. (Melcher),
publisher of SGA Goldstar Whisper Stocks, a daily stock newsletter
disseminated over the internet, was sentenced to a prison term of 12
months followed by two years supervised release and a $20,000 fine.
Melcher had pled guilty to an information charging him with
securities fraud for his conduct in publishing favorable commentary
upon and recommending the purchase of Systems of Excellence, Inc.
securities. The information alleged that Melcher received 250,000
shares of SOE stock in exchange for his recommendations, a fact he
did not disclose, and that he sold his stock while recommending that
his subscribers purchase. On November 7, 1996, the Commission filed
a complaint against Melcher and others based on a complaint alleging
a massive securities fraud at SOE. On January 21, 1997 the
Commission amended its complaint to allege that Melcher
systematically published favorable coverage of other issuers in
exchange for compensation, without disclosing that fact. The
criminal case against Melcher was the result of a coordinated
investigative effort by the Commission, the U.S. Attorney's Office
for the Eastern District of Virginia and the Internal Revenue
Service - Criminal Investigation Division from Northern Virginia and
Las Vegas, Nevada. [SEC v. Charles O. Huttoe, et al., Civil Action
No. 96-02543, GK, D.D.C.] [U.S. v. Theodore R. Melcher, Jr., Cr. 97-
244-A, AVB, ED VA] (LR-15490)
SOURCE: sec.gov |
