Jack, you should read this before posting Mr. Chelekis's theories.
sec.gov
CIVIL INJUNCTIVE ACTION FILED AGAINST GEORGE CHELEKIS, KGC, INC. AND HOT STOCKS REVIEW, INC.
On February 25, the Commission filed a complaint in the United
States District Court for the District of Columbia against George
Chelekis (Chelekis), KGC, Inc. and Hot Stocks Review, Inc. The
complaint alleges that from at least January 1995 through August
1995, Chelekis, a publisher who distributes various investment
newsletters, known as the "Hot Stocks" publications, over the
Internet and in print format, knowingly or recklessly made
materially false and misleading statements concerning six publicly-
traded companies. The complaint further alleges that from April
1994 through September 1995, Chelekis failed to disclose in the Hot Stocks publications that he and entities that he controls,
defendants KGC, Inc. and Hot Stocks Review, Inc., received at least $1.1 million from more than 150 issuers, and 275,500 shares of stock from 10 issuers, as payment for recommending securities of such issuers in the Hot Stocks publications.
Without admitting or denying the allegations in the complaint,
Chelekis, KGC, Inc. and Hot Stocks Review, Inc. consented to the
entry of a final judgment permanently enjoining them from violating
Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, and Section 17(b) of the Securities Act of 1933. The final judgment orders the defendants to pay a total of $162,727, representing $75,050 in disgorgement, $12,627 in prejudgment interest and a $75,050 civil penalty. [SEC v. George Chelekis, KGC, Inc., and Hot Stocks Review, Inc., Civil Action No. 97CV-00374, D.C.] (LR-15264) |
