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To: Cheeky Kid who wrote (3082)10/28/1998 11:50:00 AM
From: SIer formerly known as Joe B.  Read Replies (1) of 32932
 
Internet Stock-Promoters Are Hit
With Fraud Charges by the SEC
interactive.wsj.com

An INTERACTIVE JOURNAL News Roundup

In its first broad sweep of Internet securities fraud, the U.S. Securities and
Exchange Commission said Wednesday it brought charges against 44
individuals and companies who used the Net to promote stocks.

The SEC's investigation targeted online investment newsletters and Web
sites that touted stocks in exchange for cash or stock from the companies
they were promoting. The SEC requires stock promoters to disclose in
detail such disclosure. In many cases the promoters failed to adequately
disclose that they were being paid. In others, the SEC alleges, they
provided false information about the companies they promoted.

Richard Walker, the SEC's director of enforcement, said that the 23 cases
involved total cash payments of more than $6.2 million, and payments of
more than $1.8 million shares of stock and options. He said a total of 235
companies were promoted in cases brought by the SEC, almost all of
them so-called microcap companies.

Mr. Walker said that many of the promoters targeted by the SEC used
spam, or mass electronic mailings, to promote companies. He said of the
23 cases brought, five involved posts on Internet message boards and 20
involved the use of Web sites to tout securities. He said that 19 cases
involved the use of online investment newsletters, which sometimes
included dubious research reports.

The SEC has brought a total of 61 fraud cases since it started to police the
Internet in 1995.
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