To: Techplayer who wrote (5065 ) 8/20/1999 1:43:00 PM From: DuckMucker Respond to of 8858
not answering phones eh? looks like a buy! Vancouver, Aug. 20 (Bloomberg) -- Starnet Communications International Inc. shares fell as much as 49 percent after radio reports said its offices and homes of its executives were raided by Canadian authorities investigating illegal betting and pornography charges. Vancouver-based Starnet, which recently shifted from Internet pornography to online gambling, fell 5 5/16 to 7 13/16 in early afternoon trading of 4 million, more than nine times the three-month daily average. Shares earlier touched 6 3/4. CKNW/98 radio in Vancouver said that Starnet's offices and the homes of six directors and executives were raided, and that police were also investigating the possession of proceeds of crime. The company had been under investigation for 18 months regarding illegal gambling and distribution of pornography over the Internet, the station said. CKNW/98 reported that police said millions of dollars flowed through Starnet through its Internet-based gaming system. Royal Canadian Mounted Police declined to comment. A Vancouver police spokeswoman couldn't be reached. Phone calls to Starnet's headquarters weren't answered. Starnet's shares rose 52-fold, from 1/2 in November to 26 in early July, as the company shifted from online pornography to Internet gambling. The rise came despite legal restrictions for online gambling that have prompted Starnet to refuse bets from U.S. and Canadian residents and to set up its Internet casino unit in the West Indies, out of the reach of U.S. legal authorities. --Ron Day in Princeton (609) 279-4099 and Adam Steinhauer in San Francisco through the Princeton newsroom/gfh Story illustration: For a graph of Starnet Communications International shares' performance, type SNMM US <Equity> GM <Go>. R E L A T E D I N F O R M A T I O N Related Bloomberg Functions for Starnet Communications Inter 27) DES Description 29) GPO Px & Volume Graph w/Mov Avg 28) CHAT Bloomberg User Forum