To: Bob Tate who wrote (37549 ) 3/9/2001 7:58:54 AM From: long-gone Respond to of 116782 & having added to the prior bubble?: Thursday March 8, 7:52 pm Eastern Time 20 indicted on charges of securities fraud-SEC (UPDATE: Updates with arraignment, quotes paragraphs 4-7) WASHINGTON, March 8 (Reuters) - A federal grand jury indicted 20 people, including two alleged associates of an organized crime family, on charges of alleged securities fraud involving penny stocks, U.S. regulators said on Thursday. Accused of using ``boiler-room'' tactics, they bought large blocks of microcap stock at low prices, artificially inflated the stock with misrepresentations of the companies then sold them to investors at higher prices. U.S. authorities said investors' losses amounted to about $50 million from the actions of the defendants, who face criminal charges in a U.S. federal court in Brooklyn, N.Y. They were arraigned late Thursday. Loretta Lynch, U.S. attorney for the Eastern District, said that organized crime figures ``acted not just as muscle, or enforcement, but were involved in the day-to-day stock operations.'' Attorneys representing the defendants could not immediately be reached for comment. Joseph Tacopina, a lawyer for one of the brokers, said: ``I vigorously refute the government's version of events.'' Attorneys representing Michael Reiter, the son of jailed Gambino captain Mark Reiter who was an associate of now-jailed mob boss John Gotti, declined to comment. The offices of the U.S. Attorney for the Eastern District of New York, the Federal Bureau of Investigation and the New York State Attorney General are handling the criminal case, which also involves two accused associates of the Gambino organized crime family. (cont)biz.yahoo.com