off topic:
Seven stockbrokers were charged with taking illegal payments for selling over-the-counter stocks. The defendants, Paul Mabry, Darlon Gordon, Shirley McKinney, Frank Taylor, John Dankovich, John Brownson and Paul Kucik, were charged with securities fraud, money laundering and conspiracy.
According to the indictment, the brokers received illegal payments from a stock promoter in Boca Raton trying to increase the demand for the shares of companies he was backing. The brokers made about 15% of their gross purchases and were penalized if an investor sold the shares without the promoter's approval. The brokers were paid in cash, money or wire transfers and received additional sales commissions. The group sold $753,000 of stock on behalf of the promoter. The stocks promoted include Malvy Technology Inc., U.S. Exploration Inc., Linium Technology Inc. and Optimax industries Inc., all traded on the NASDAQ Bulletin Board.
The charges were the result of an investigation by the U.S. Attorney's office in West Palm Beach, the Federal Bureau of Investigation, the U.S. Postal Inspection Service and the Securities and Exchange Commission and National Association of Securities Dealers. The charges reflected a two-year series of criminal investigations by federal law-enforcement authorities into the abuses involving securities-sales practices. (Dow Jones News Service 9/07/98) |
