That doesn't surprise me a bit concerning Riley.
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Speaking of quick runups, did you see the runup this company made recently and who is promoting it? hint......Denver
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sec.gov
DIRECTOR OF FIRST ENTERTAINMENT, INC. The Commission ordered Nicholas Catalano (Catalano), a director of First Entertainment, Inc. (First Entertainment), a microcap company headquartered in Denver, Colorado, to cease and desist violating the antifraud and filing provisions of the federal securities laws in the aftermath of his having signed several periodic filings that vastly understated compensation paid to Abraham B. Goldberg (Goldberg), the president and a director of the company. Catalano, a resident of Flushing, New York, was a director of First Entertainment from March 1992 through August 1998. In the Order, the Commission found that from 1995 through 1997 Goldberg received almost $400,000 in money and stock through various related party transactions, usually involving his wife, that were not disclosed in First Entertainment's filings signed by Catalano. It further found that Catalano knew or should have known of the related party transactions, but took no steps to insure that they and the potential compensation to Goldberg were disclosed in First Entertainment's filings. Finally, the Commission found that from 1992 through 1997 Catalano failed to report his beneficial ownership of First Entertainment securities and changes in his securities holdings. Catalano was ordered to cease and desist from committing or causing any violation and any future violations of Section 17(a) of the Securities Act of 1933 and Sections 10(b), 13(a), 14(a), and 16(a) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1, 14a-3, 14a-9, and 16a-3 thereunder. Catalano consented to the entry of the Order without admitting or denying its findings. (Rels. 33-7715; 34-41693; File No. 3-9957)
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JEFFREY BERNS BARRED FROM ASSOCIATION WITH ANY BROKER OR DEALER AND ORDERED TO DISGORGE BRIBE AND PAY PENALTY The Commission barred Jeffrey W. Berns (Berns) from association with any broker or dealer after concluding that he received a bribe in exchange for recommending that customers purchase the stock of First Entertainment, Inc. (First Entertainment), a microcap company. Berns resides in New York, New York, and was formerly employed by D.H. Blair & Co., Inc. in New York City. The Commission found that in 1995, while recommending that customers purchase First Entertainment stock, Berns received shares of First Entertainment stock worth over $27,000 from Morton Lempel (Lempel), whom he knew to be affiliated with the company. The Commission further found that Berns failed to disclose to customers the compensation he received from Lempel for soliciting them to buy the stock and indeed tried to conceal the payment by having Lempel transfer the stock to Berns' mother. Berns was barred from association with any broker or dealer and ordered to cease and desist from committing or causing any violation and any future violation of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Berns was also ordered to disgorge $39,171 and to pay a penalty in the amount of $27,500. Berns consented to the entry of the Order without admitting or denying its findings. (Rels. 33-7714; 34-41692; F
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THE COMMISSION INSTITUTES ADMINISTRATIVE AND CEASE AND DESIST PROCEEDINGS AGAINST G. BRADLEY TAYLOR The Commission instituted administrative and cease and desist proceedings against a registered representative, G. Bradley Taylor (Taylor), formerly employed by Investors Associates, Inc., in Chicago, charging that he received a bribe in exchange for recommending that customers purchase the stock of First Entertainment, Inc. (First Entertainment), a microcap company. Taylor resides in Wheaton, Illinois, and is currently a registered representative associated with Stifel, Nicolaus & Company, Inc. in Chicago, Illinois. The Commission alleges that in 1995, while recommending that customers purchase First Entertainment stock, Taylor received shares of First Entertainment stock worth almost $60,000 from Morton Lempel (Lempel), whom he knew to be affiliated with the company. The Commission further alleges that Taylor failed to disclose to customers the compensation he received from Lempel for soliciting them to buy the stock and indeed tried to conceal the payment by having Lempel transfer the stock to Taylor's mother. The Commission alleges that Taylor violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. A hearing will be scheduled to determine whether the allegations against Taylor are true, and if so, what, if any, remedial action is appropriate and whether respondent should be ordered to pay disgorgement and/or civil penalties. (Rels. 33-7713; 34-41691; File No. 3-9955)
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MORTON LEMPEL ORDERED TO DISGORGE $89,000 FOR PAYING BRIBES TO BROKERS The Commission ordered Morton B. Lempel (Lempel) to cease and desist from violating the antifraud provisions of the federal securities laws after concluding that he paid bribes to two brokers in exchange for their recommending that customers purchase the stock of First Entertainment Inc. (First Entertainment), a microcap company headquartered in Denver, Colorado. Lempel is a resident of Spring Valley, New York. In the Order, the Commission found that, from April to June 1995, Lempel gave First Entertainment stock worth approximately $87,000, to two registered representatives, Jeffrey W. Berns, formerly employed by D. H. Blair & Co., Inc. in New York City, and G. Bradley Taylor, formerly employed by Investors Associates, Inc. in Chicago, in exchange for their recommending First Entertainment securities to their customers. It further found that Lempel and the brokers tried to conceal the stock payments by having Lempel transfer the stock to accounts maintained by relatives of each broker. Finally, the Commission found that Lempel received $89,138 from sales of First Entertainment stock that he had been given by the company for his services. Lempel was ordered to cease and desist from committing or causing any violation and any future violation of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Lempel was also ordered to pay disgorgement of $89,138, but the payment was waived based upon Lempel's demonstrated financial inability to pay. Lempel consented to the entry of the Order without admitting or denying its findings. (Rels. 33-7716; 34-41694; File No. 3-9958)
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SEC v. FIRST ENTERTAINMENT, INC. The Commission today sued First Entertainment, Inc., (First Entertainment) and its president, Abraham B. Goldberg (Goldberg), charging that the company and Goldberg fraudulently failed to disclose approximately $350,000 in money and stock paid to Goldberg. First Entertainment, a microcap company headquartered in Denver, Colorado, owns the Comedy Works nightclub in Denver. Goldberg lives in Aurora, Colorado, and has a history of securities violations. The Commission alleges that from 1995 through 1997 Goldberg received compensation of approximately $350,000 that was not disclosed in Fist Entertainment's public filings. Goldberg allegedly tried to conceal the compensation by directing the money or stock through his wife in a series of related party transactions. Specifically, the Commission alleges that First Entertainment paid stock to certain consultants of First Entertainment who paid kickbacks to Goldberg's wife, Nannette Goldberg. Goldberg and his wife also each allegedly received consulting fees that should have been disclosed. In addition, the Commission alleges that Nannette Goldberg received $100,000 worth of First Entertainment stock in 1997 without approval of the First Entertainment board. The Commission alleges that material facts or omissions concerning Goldberg's compensation were contained in First Entertainment's 1995 and 1996 annual reports and in a registration statement and a proxy statement filed by the company in 1997. Finally, the Commission also charges that Goldberg failed to report his beneficial ownership of First Entertainment securities and changes in his securities holdings. The Commission alleges that First Entertainment violated the antifraud and filing provisions of the securities laws, Section 17(a) of the Securities Act of 1933 (Securities Act) and Sections 10(b), 13(a), and 14(a) of the Exchange Act of 1934 (Exchange Act) and Rules 10b-5, 12b-20, 12b-25, 13a-1, 13a-13, 14a-3 and 14a-9. The Commission alleges that Goldberg violated Section 17(a) of the Securities Act and Sections 10(b), 14(a), and 16(a) of the Exchange Act and Rules 10b-5, 12b-20, 14a-3, 14a-9, and 16a-3 thereunder, and that Goldberg aided and abetted First Entertainment's violations of Section 13(a) of the Exchange Act and Rules 12b-25, 13a-1, and 13a-13. The Commission filed its complaint in federal court in Denver, Colorado, and seeks a permanent injunction against First Entertainment and Goldberg and seeks disgorgement, civil money penalties, and an officer and director bar against Goldberg. [SEC v. First Entertainment, Inc., Civil Action No. 99K1489] (LR-16239) |
