<Off Topic>
John, about three years ago I was sitting in the office of the President of a California healthcare technology company, doing my stuff, when in walks the one and only Rafi Kahn. ...
COMMISSION CHARGES STOCKBROKERS RAFI KHAN AND TIMOTHY TYRRELL WITH STOCK
MANIPULATION
The Commission filed a complaint in federal district court in Los
Angeles charging Rafi M. Khan with fraud for manipulating the stocks
of two companies, Future Communications, Inc. (FCMI), and The L. L.
Knickerbocker Co., Inc. (KNIC). From June 30 to August 30, 1993,
FCMI's stock price rose from $6.50 to $27.25. Two months later, the
company declared bankruptcy. From July 3 to August 11, 1995, KNIC's
stock price rose from $6 to $52 per share. The complaint alleges
that Khan orchestrated these price runs using a variety of
manipulative practices, including acquiring substantial control of
the market for each stock, executing unauthorized trades, touting
wildly exaggerated earnings projections, and promoting a "short
squeeze" scheme. The complaint also alleges that Timothy J. Tyrrell
participated in the FCMI manipulation by, among other things,
orchestrating a collusive trading arrangement with another broker.
The Complaint charges Khan and Tyrrell with violating Section 17(a)
of the Securities Act of 1933 and Section 10(b) of the Securities
Exchange Act of 1934 and Rule 10b-5 thereunder, and seeks permanent
injunctions, disgorgement of improper trading profits with
prejudgment interest, and civil penalties. [SEC v. Rafi M. Khan and
Timothy J. Tyrrell, Civil Action No. CV-98-6143 MMM, SHx, C.D. Cal.]
(LR-15827)
sec.gov |
