SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16103 \ April 2, 1999
Securities and Exchange Commission v. Michael Cardascia and Strathmore
Equity Services, Inc. 98 Civ. 1938 (S.D.N.Y.) (KMW)
The Commission announced that a final consent judgment has been
entered in the Commission's action against radio talk-show host
Michael Cardascia and his company Strathmore Equity Services, Inc. On
March 17, 1999, Judge Kimba M. Wood permanently enjoined Cardascia and
Strathmore from further violations of Section 17(b) of the Securities
Act of 1933, and ordered them to pay $50,000 in penalties.
Cardascia, of Manhasset, New York, hosted a radio program named
Inside Wall Street, which was broadcast three times a week on WEVD in
New York, from late 1995 through at least December 1997. The
Commission sued Cardascia and Strathmore in March 1998, alleging
inadequate disclosure of payments received for touting stocks on the
radio program. Cardascia and Strathmore consented to the entry of the
final judgment without admitting or denying the allegations in the
Commission's complaint.
Cardascia, age 33, was previously charged by the Commission with
failing to disclose to broker-clients that he received kickbacks from
stock promoters. SEC v. Atlantic Capital, et al., 96-1043-Civ-ORL-19A
(M.D. Fla.). He settled that action in October 1998. See Litigation
Release No. 15082, September 27, 1996 and Litigation Release No.
15714, April 21, 1998.
For further information, see Litigation Release No. 15674, March
17, 1998. |
