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Strategies & Market Trends : Stock Watcher's Thread / Pix of the Week (POW) -- Ignore unavailable to you. Want to Upgrade?

To: Stock Watcher who wrote (15918)	9/29/1999 12:33:00 PM
From: Boddington	Read Replies (1) \| Respond to of 52051

Remember SMMM ? It's a scam. details ... SEC Sues Stratcomm, 16 Others in $20 Mln Micro-Cap Fraud Case Washington, Sept. 27 (Bloomberg) -- Stratcomm Media Ltd., a Florida company that publishes ''MoneyWorld'' magazine, and 16 other companies and people were charged by regulators with realizing $20 million in profits while defrauding investors. The Securities and Exchange Commission alleged that Stratcomm, based in Winter Park, Florida, and its president, Roberto E. Veitia, secretly obtained free or discounted stock from public companies in return for touting these concerns between 1994 and 1996. The defendants promoted the stocks of at least 15 small, thinly traded companies, the SEC contended in a lawsuit filed in federal court in Orlando, Florida. Many of the defendants, including Veitia, secretly sold the stock they owned after driving up company shares, the suit alleged. Among the companies charged were Stratcomm's public relations unit, Corporate Relations Group Inc., and one of its publishing units, Gulf Atlantic Publishing Inc., both of which are based in Winter Park. Stratcomm and all the other defendants are contesting the charges. Their lawyers either declined comment or couldn't be reached. Stratcomm's stock soared from as little as 18.75 cents a share last October to more than $3 in July. It's shares since have plunged, falling 5.5 cents today to 82 cents. The SEC alleged Corporate Relations Group and Veitia also bribed brokers to push Tracker Corp. of America stock to their customers. Tracker, a small personal-property identification company, wasn't charged. Four brokers in Florida, New York, Maryland and Vermont were charged with failing to tell customers about the bribes they received. Another small public company, Ammonia Hold Inc., was charged with violating registration requirements in the sale of its stock to Corporate Relations Group. Ammonia Hold, a maker of odor- reducing products, was the only Corporate Relations Group customer charged. Among other stocks touted was Delta Petroleum Corp., which defendants' advertisements said could realize 1000 percent gains, the SEC suit alleged. Sep/27/1999 16:49 For more stories from Bloomberg News, click here. (C) Copyright 1999 Bloomberg L.P.