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Biotech / Medical : Amelot Holdings Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Boryh who wrote (165)	9/27/1999 10:41:00 PM
From: Boryh	Read Replies (2) \| Respond to of 201

Monday September 27, 6:47 pm Eastern Time SEC sues 17 for fraud in microcap companies WASHINGTON, Sept 27 (Reuters) - The Securities and Exchange Commission filed civil charges on Monday against 17 individuals and companies for allegedly defrauding investors of at least $20 million by touting 15 small companies, known as microcaps, without disclosing relationships with the companies. The SEC accused Stratcomm Media Ltd. (OTC BB:SMMM.OB - news), its subsidiary Corporate Relations Group Inc. (CRG), president and several employees of failing to disclose that they received shares in companies in exchange for promoting them, driving up the price and then selling their shares, a practice known as ''scalping.'' Roberto Veitia, the president of Stratcomm which publishes MoneyWorld magazine, and his associates James Spratt and James Skalko received free or discounted securities in exchange for advocating the stocks and then secretly sold the stocks while promoting them between 1994 and 1996, the SEC said. Monday's suit is the latest move by the SEC in its sweep of the microcap industry. In August, the regulator charged 82 people and companies of swindling investors of ''untold millions'' through various schemes and fraud. The SEC on Monday also accused the defendants of trying to hide their activity by using two Costa Rican entities, to acquire the securities to avoid the appearance of impropriety. The regulator charged the two entities, Fondo de Adquisiciones E Inversiones Internacionales XL S.A. and C.A. Oportunidad S.A. and its president with defrauding issuers. Additionally, the SEC said Veitia and Spratt allegedly sold securities ''short'' which were to be acquired from the Winter Park, Fla. public relations firm and they later used the securities to cover the short sales. Spratt's attorney said there's ''no basis for the SEC's attempt to place responsibility on him for the actions of CRG and others.'' ''Mr. Spratt intends to vigorously defend this civil action and fully expects to be vindicated in the courts,'' said Keith Miller, Spratt's attorney. The SEC also charged that CRG, Veitia, Spratt and Skalko offered and paid bribes to registered representatives so they would promote The Tracker Corporation of America (OTC BB:TRKR.OB - news). Four stockbrokers were also charged in an administrative proceeding Monday for allegedly not disclosing payments they received from CRG in exchange for promoting Tracker stock. An attorney for Veitia and Stratcomm was not immediately available for comment. All the defendants are contesting the charges. Additionally, the SEC accused Ammonia Hold Inc. (OTC BB:AMHD.OB - news), a CRG client, of failing to register shares issued and sold to the public relations firm. In its filing in Orlando, Fla., the SEC is seeking injunctions against the defendants and orders that would force them to return ill-gotten gains. Stratcomm shares fell five cents to 82 cents on the Nasdaq bulletin board. -------------------------------------------------------------------------------- More Quotes and News: Ammonia Holdings Inc (OTC BB:AMHD.OB - news) Stratcomm Media Ltd (OTC BB:SMMM.OB - news) Tracker Corp Of America (OTC BB:TRKR.OB - news) Related News Categories: US Market News -------------------------------------------------------------------------------- Help -------------------------------------------------------------------------------- Copyright © 1999 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.