...Also, unless I'm mistaken, J.T.'s was a client of the infamous spamming IR firm Sloan Fitzgerald (also on the Commissioner's list). SF's other well known client was Eventemp - see #Subject-19857. ...
SEC Charges 44 Stock Promoters in First Internet Securities Fraud Sweep
Purveyors of Fraudulent Spam, Online Newsletters, Message Board Postings, and Websites Caught
...Among the schemes in today's sweep, the SEC alleges a wide range of Internet-related securities fraud. Below are a few highlights. ...
Francis A. Tribble and his promoting company, Sloan Fitzgerald, disseminate more than six million spams touting two Microcap companies and were the subject of the largest number of complaints received in the history of the Enforcement Complaint Center (SEC Enforcement's Online Complaint Center at www.sec.gov) They also republished their touts in several other forms including an online newsletter and a Web site. Simultaneous with the filing of the complaint, Tribble and Sloan Fitzgerald consented, without admitting or denying the SEC's allegations, to the entry of a permanent injunction and payment of a civil penalty of $15,000. (SEC v. Tribble) ...
sec.gov
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
S.E.C. v. Francis Tribble and Sloane Fitzgerald Civil Action No. 98-8699 (RVX ) (C.D. Cal. October 27, 1998).
Litigation Release No. 15959/ October 27, 1998
SEC Fines Internet Stock Promoter Responsible for Massive Spam Campaign
The Securities and Exchange Commission filed a civil action in federal district court against Francis A. Tribble, a stock promoter, and Sloane Fitzgerald, Inc., a public relations firm which Tribble owns, alleging that Tribble and Sloane Fitzgerald touted two microcap stocks over the Internet without disclosing contractual arrangements with the issuers of those stocks to pay stock and cash
compensation for those promotional efforts. The Complaint alleges that Tribble, through Sloane Fitzgerald, entered into contractual agreements with Eventemp Corporation and JT's Restaurants, Inc. to promote their companies and securities over the Internet and elsewhere for stock and cash compensation. According to the complaint, between November 1997 and August 1998, Tribble disseminated several million Internet e-mails, known as "spams;" designed and maintained several Internet websites; and distributed an online investment newsletter, each of which recommended investment in Eventemp or JT's Restaurants common stock, without making legally sufficient disclosure of Tribble's compensation arrangements with those issuers. Without admitting or denying the allegations in the complaint, Tribble and Sloane Fitzgerald have consented to be enjoined
from violating Section 17(b) of the Securities Act of 1933, and Tribble has consented to pay a civil penalty of $15,000.
The Complaint alleges that Tribble sent out millions of spams to Internet users touting the potential earning power of Eventemp and JT's Restaurants stock. Many of the spams purported to be from independent stock promoters such as "HotStock," "Net-Vest," and "Cyber-Stock," which were actually only names Tribble invented. Tribble's spams also referred readers to a variety of Internet websites which he built, containing additional information about the companies he was touting and recommendations to buy their stock. Finally, in August 1998, Tribble wrote an online investment newsletter touting JT's Restaurants and distributed it over the Internet to 200 subscribers whom he had solicited through previous Internet e-mails and websites.
In conducting this Internet promotional campaign, the Complaint alleges, Tribble failed fully to disclose that he had a vested interest in an increase in the price of the stocks he was touting, or that he would be compensated by the companies he was touting in cash or securities of those companies. Tribble's activities violated Section 17(b) of the Securities Act of 1933, which makes it unlawful for any person to recommend stock for consideration, whether past or
prospective, without disclosing the fact, nature, and amount of that consideration.
Investors are advised to read the SEC's "Cyberspace" Alert before purchasing any investment promoted on the Internet. The free publication, which alerts investors to the telltale signs of online investment fraud, is available
on the Investor Assistance and Complaints link of the SEC's Home page on the World Wide Web <www.sec.gov>. It can also be obtained by calling 800-SEC-0330." Investors are encouraged to report suspicious Internet offerings (or other
suspicious offerings) via e-mail to <enforcement@sec.gov>. A user-friendly form to assist you in making a report is available at the Enforcement Complaint Center, Mail Stop 8-4, 450 Fifth Street, Washington, D.C. 20549."
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