Is this our debenture holder due july 31,1998 (Austost Anstalt Schaan)
Involved in a law suit!!
Wednesday July 22, 12:43 pm Eastern Time
Company Press Release
National Affiliated Corporation Files Lawsuit Alleging Fraudulent Stock
Shorting Scheme
Suit Seeks Treble Damages for Scheme to Depress Company's Stock Price By Certain Debenture Holders
NORTH BETHESDA, Md.--(BUSINESS WIRE)--July 22, 1998-- National
Affiliated Corporation (OTCBB:NAAC - news) announced today that the
company and certain company stockholders have filed a lawsuit in U.S.
District Court in Los Angeles seeking treble damages and other remedies
for an alleged fraudulent ''stock shorting'' scheme to depress the
market price of the company's common stock.
In the suit, the company and the shareholders allege that the
defendants, who are various entities holding the company's convertible
debentures and individuals controlling those entities, purchased the
company's debentures as part of an illegal scheme and conspiracy which
entailed significant manipulative short selling of the company's common
stock.
This alleged scheme of market manipulation commenced in the fall of 1997
and allegedly depressed the market price of the company's common stock,
reducing market capitalization of the company by almost $15 million. The
company also seeks relief that it be excused from any obligations to
issue common stock on conversions.
The suit, brought by the Los Angeles law firm of Christensen, Miller,
Fink, Jacobs, Glaser, Weil & Shapiro, LLP, names as defendants Ronald G.
Williams, Sheldon D. Taiger, Arie Rabinowitz, Chris Rossman, Ethel
Schwartz, Guilherme Duque, Dora Fried, Joseph Schonkopf, Thomson
Kernaghan & Company Ltd., Excalibur Limited Partnership, Vengua Capital Markets Ltd., London Select Enterprises Ltd., Select Capital Advisors, Inc., (( Austost Anstalt Schaan )) , UFH Endowment Ltd., L.H. Financial
Services, Willora Company Ltd., Iguana Investments, Arcadia Mutual Fund,
Asia Equities, Passy Holding, Paril Holding and others unknown at this
time.
National Affiliated Corporation is committed to the acquisition and
consolidation of insurance companies, mainly those with a clear
potential for a high return on investment from immediate cost
reductions, and timely marketing of profitable niche products.
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Contact:
Martin E. Janis & Company
Wayne Schumacher
312/943-1100
or
National Affiliated Corporation
Brent Chapel
888/984-0800
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