JB OXFORD IN TROUBLE AGAIN WITH THE SEC.
What else is new? LOL
JB Oxford is one of the shorts named in the AZNT lawsuit.
biz.yahoo.com
NASD Regulation Continues Microcap Market Focus;
Complaints Name Brokers At Greenway Capital and
Kensington Wells
WASHINGTON, Sept. 23 /PRNewswire/ -- NASD Regulation, Inc., today announced that it has filed complaints in two
microcap fraud cases. A total of 23 brokers at Greenway Capital and Kensington Wells, Inc., were named in the two separate
complaints.
In both cases, NASD Regulation's complaints allege a series of fraudulent practices and the extensive use of abusive and
high-pressure ''boiler room'' sales tactics to sell low-priced speculative securities to retail investors.
Greenway Capital Corp.
At Greenway Capital Corp., a now defunct New York, NY, brokerage firm that was also known as Cortlandt Capital Corp.,
11 brokers -- including the firm's President, John J. Margiotta; and one of its owners, Fred R. Luthy -- were charged with a
variety of sales practice and supervisory violations. Also named in the complaint are: Alan J. Mandel, Jason A. Prussing, James
J. Crimi, Jeffrey S. Geoghegan, Javier Hernandez, James Morrill, Joseph A. Ricci, Cosmo Scali, and Joseph S. Tarulli.
NASD Regulation charged seven of the 11 brokers with fraud in connection with the April 1996 underwriting of Dialysis
Corporation of America (Nasdaq:DCAI - news; DCA). Based on interviews with investors across the country, and after
investigating customer complaints against the firm and its brokers, NASD Regulation uncovered evidence of numerous instances
of unauthorized trading, misrepresentations, and the use of illegal boiler room sales tactics. For example, many investors
complained that Greenway's brokers threatened to cancel their purchases of the initial public offering (IPO) if the investors
refused to make additional investments in DCA.
The complaint also charges that many investors had their purchases canceled when they refused to buy additional DCA shares
in the aftermarket.
In addition, NASD Regulation charged that the owners of certain favored accounts -- such as former Greenway brokers, a
relative of a current Greenway broker, and a former girlfriend of a Greenway broker -- were permitted to purchase securities
(both stock and warrants) in the IPO, and then sell them back to Greenway for a quick profit. These customers were not
required to purchase DCA shares in the aftermarket.
The complaint alleges that in the DCA offering Greenway used young, inexperienced brokers to sell low-priced, highly
speculative securities to retail customers through boiler room sales tactics such as: trading without customer authorization;
making material misrepresentations including making baseless price predictions; omitting material information; guaranteeing
future stock performance; failing to execute customer orders; and not executing orders promptly.
NASD Regulation also charged six of the 11 brokers with unauthorized trading in connection with Greenway's dealings in
several ''house stocks,'' including: Hariston Corporation [OTC BB:HRSNF - news], Consolidated Western & Pacific
Resources, Smartel Communications Corp., and J.B. Oxford Holdings, Inc.
House stocks are generally viewed as those that
have been underwritten by a single brokerage firm in circumstances where that firm is in control of much of the company's
outstanding shares and dominates the aftermarket trading. The complaint alleges a series of violations with respect to these
stocks, including: unauthorized trading; material misrepresentations and omissions; baseless price predictions; falsifying firm
records; failing to follow customer instructions to sell securities; misusing customer funds; and violating state Blue Sky laws. |
