And the spread of misinformation continues!...
Anil you printed the "Dow Jones" article....There is also a
"Wall Street Journal" article (below).
I thought Dow Jones and the Wall Street Journal were one in the same....apparently not!
From Dow Jones>>>
An attorney for Huttoe said only, ''The stakes have been made and Mr. Huttoe is attempting to resolve the
difficulties.''<<<
From Wall Street Jornal>>>
John Fedders, a Washington attorney representing Mr. Huttoe declined to discuss the allegations in detail. "Mistakes have been made and Mr. Huttoe is attempting to resolve difficulties," Mr. Fedders said.<<<
The Wall street Journal even says that SEXI is traded on OTCBB and
not the pinks sheets where it is now traded>>>
The stock is traded on an electronic bulletin
board service operated by the Nasdaq Stock Market.<<<
Both the DJ article and the times article were witten by MATTHEW K. BENJAMIN
Were the stakes made or were mistakes made...
you be the judge!
Personaly i've learned one very important lesson here...never beleive
anything you read on it's own merits Due Dilligence is a must!
The Wall Street Journal Interactive Edition -- November 8, 1996
SEC Brings First Suit Charging
Stock Manipulation on Internet
By MATTHEW K. BENJAMIN
Dow Jones News Services
WASHINGTON -- The Securities and Exchange Commission filed a suit
Thursday against several firms and individuals in its first case alleging market
manipulation of a publicly-traded stock using the Internet.
Citing the speed and efficiency the new medium can lend the dissemination of
information, and more importantly misinformation, an attorney at the SEC said
the case represents the commission's newly intensified vigilance for stock
promotion schemes involving the Internet.
Filed in the District of Columbia, the suit alleges a massive and ongoing market
manipulation in the common stock of Systems of Excellence Inc., a Coral
Gables, Fla., maker of video teleconferencing equipment. Regulators charge that
individuals involved in the case reaped more than $10 million.
Between March 1995 and July 1996, according to the SEC, Systems of
Excellence's chairman and chief executive, Charles Huttoe, distributed
unregistered shares of the company to accounts controlled by him and to
principals at SGA Goldstar Research Inc., a market research company that
publishes an electronic newsletter distributed over the Internet.
In return for the shares, the SGA employees, Theodore Melcher and Shannon
Terry, agreed to include Systems of Excellence in their electronic newsletter,
SGA Whisper Stock Report. The newsletter is disseminated electronically via a
World Wide Web site, as well as by fax and quote machines, to over 700 paid
subscribers.
John Fedders, a Washington attorney representing Mr. Huttoe declined to
discuss the allegations in detail. "Mistakes have been made and Mr. Huttoe is
attempting to resolve difficulties," Mr. Fedders said. An attorney for the SGA
Goldstar employees could not be reached.
Over a number of months, according to the complaint, the newsletter continually
urged its readers to buy and hold Systems of Excellence stock, backed up by
what the SEC says was false and misleading information. Mr. Huttoe also hyped
the company through misleading press releases about the company's success in
the video teleconferencing business, the SEC said.
The promotional information distributed by Mr. Huttoe and SGA caused the
company's share price to skyrocket from 28 cents in December 1995 to over
$4.50 in June 1996, the SEC said. Mr. Huttoe and the SGA individuals illegally
profited on the rise by reselling their shares to the public at huge profits. Mr.
Huttoe alone amassed at least $9.7 million from the sales, according to the SEC.
The stock later retreated to around $1.20 a share.
An attorney for the SEC said the securities industry regulatory agency is seeking
a return of all illegal profits, said to exceed $10 million. The commission has not
yet decided to seek civil penalties.
Systems of Excellence acknowledged last month that it was cooperating with
the SEC in an investigation of the company's financial and administrative
activities. Trading in Systems of Excellence was halted for two weeks last
month in connection with the probe. The stock is traded on an electronic bulletin
board service operated by the Nasdaq Stock Market. |
