i was talking about this, which chat room and which poster made accusations in a chat room and caused the sec to initiate investigation
Newsletter denies wrongdoing in online chat probe
NEW YORK, Sept 28 (Reuters) - The editor and publisher of the financial newsletter S.A. Advisory said he told federal regulators investigating boat distributor Great White Marine & Recreation Inc. <JAWS.OB> that he was never paid for publishing a buy recommendation on the company's stock.
"They can tie me up and burn holes in my body before I do that," William Velmer told Reuters in response to questions surrounding the Securities and Exchange Commission's (SEC) probe of Great White.
The SEC is trying to determine if such payments -- which are legal as long as they are disclosed -- were made by Great White without proper disclosure.
Great White, saying the SEC probe was sparked by someone -- possibly a short-seller -- bad-mouthing the company on the Internet, has denied any wrongdoing.
Velmer is one of several newsletter publishers pulled into the investigation of Waco, Texas-based Great White, which distributes products ranging from cabin-cruiser style boats to outboard motors to all terrain vehicles.
Velmer said that while he sometimes gets paid for his profiles of companies, his recommendations to his subscribers and readers of his online newsletter cannot be bought, he said. Such payments are fully disclosed, he added.
"I look at the numbers," he said. "I never meet management."
Velmer publishes S.A Advisory both on the Internet and in a hard copy that has circulation of up to about 3,000 which comes out usually every other month.
Velmer said he first recommended the stock on March 30. By May 13, after the company's stock had increased 200 percent, he told his audience to sell.
The day after he issued a second sell recommendation earlier last week, the company came out with its announcement that it was being investigated by the SEC.
"I would never own a stock of a company being investigated by the SEC because you don't know how what the outcome is," Velmer said.
Great White has denied any wrongdoing and said when it had paid for write-ups in newsletters, the articles appeared with a disclosure saying so.
S.A. Advisory's Internet address is www.saAdvisory.com.
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