Obviously this is all a game for you, and unfortunately this and other threads are clogged with your idle chatter.
Joseph Charles (like all brokerage firms and their brokers) are not governed by constitutional amendments but by the SEA regulations. Violations of any one of these regulations is illegal. Yes, you can go lose your licence, go out of business, or even go to jail for violating them. Some game, huh?
It is common knowledge among brokers and managers who own Newcom (and a few private investors) that JCC has violated at least two regulations.
First, their brokers have been executing unauthorized trades by the hundreds, selling a stock they put in their customers' accounts just a few short months ago on the IPO, without the customers' expressed consent, in order to put those customers in another JCC IPO. Some customer complaints against the company for this practice have already been filed.
More serious is the practice of the Company to allow their brokers to buy and sell Newcom away from the market. It is not unusual for JCC brokers to mark up (or mark down)their trades by $1. to $1.40. This practice is currently the subject of a complaint being filed with SEC. I hope the SEC acts on it somewhat faster than Rafi Khan's 1993 infractions.
Inspection of all JCC Newcom trades for the last six months will quickly resolve the Company's guilt or innocence of these violations. In the meantime, the vindictive selling of the last month or so, while not illegal, is highly reprehensible for the underwriter of the Company's stock. And where the spirit of the law has been violated in one area, you will usually find the letter of the law has been breached in another.
I should quickly add that some account executives at JCC do not follow their Company's bad example. They represent their customer's best interest by investing for the longer term, and not churning them from one IPO to another. They are still long Newcom, having invested in the company for its excellent growth prospects - as have most of the rest of us. They are to be congratulated for their independence. |
