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Microcap & Penny Stocks : Zia Sun(zsun) -- Ignore unavailable to you. Want to Upgrade?

To: Sir Auric Goldfinger who wrote (4740)	10/8/1999 4:08:00 PM
From: StockDung	Read Replies (1) \| Respond to of 10354

Auric, this was a good story I read today. Also did you ever read the TMOT filings and see the huge amount of stock PT Dolok purchased way below market? I also have a copy of the bestway USA memorandum along with statements. The noose is going to get allot tighter very soon. Just got my new scanner in today. -------------------- U.K. Attorney Charged in $17 Million International Stock Fraud 6/17/99 17:34 U.K. Attorney Charged in $17 Million International Stock Fraud New York, June 17 (Bloomberg) -- A British attorney for a Manhattan brokerage has been charged with aiding an international securities fraud that generated $17 million in the U.S., the Manhattan District Attorney's Office said. Andrew Warren, 52, a former partner at the London law firm Talbott, Creggy & Co., was charged with enterprise corruption, securities fraud, and falsifying business records. Warren was arrested last year in the U.K. He's accused of helping set up dummy corporations in Liberia and the Isle of Jersey that owners of a Manhattan brokerage would use to secretly buy unregistered securities, Manhattan District Attorney Robert Morgenthau said. Morgenthau said the owners of the Manhattan brokerage, Westfield Financial Corp., would buy the unregistered securities at a discount through the dummy firms, inflate the prices by luring in other investors, then sell them, causing the prices to drop. The securities included Saratoga Brands Inc., Candie's Inc., Las Vegas Entertainment Network Inc. and Response USA Inc. ''In this case, the lawyer actually knew he was helping perpetrate a fraud,'' Morgenthau said in a written statement. Warren is out on bail in England, and the District Attorney's Office plans to seek his extradition, said Wayne Brison, a spokesman for Morgenthau. Warren's attorney couldn't immediately be reached in London for comment. The alleged scheme was discovered during an investigation of A.R. Baron Co., a now-defunct Manhattan brokerage that was charged along with 13 officials and employees, Morgenthau said. As part of the fraud at Westfield, lawyers in London and Canada recruited a foreign diplomat to pose as the owner of the shell companies, he said. Morgenthau didn't identify the diplomat. U.S. investors in the alleged scheme included Salvatore Mazzeo, Westfield's president and a New York stock promoter, who pleaded guilty in 1997 to attempted enterprise corruption. Others charged include George Carhart, chairman of Westfield's board, who pleaded guilty to attempted enterprise corruption last July; James Cohen, a consultant, who pleaded guilty to the same charge last August; and Felice Mischel, former partner at the New York law firm Schneck, Weltman, & Hashmall, who pleaded guilty to offering a false instrument for filing. All are awaiting sentencing, the district attorney's office said. Morgenthau said last year that Andrew Bressman, the former president of A.R. Baron, provided information to help Mazzeo and also encouraged people to invest in the dummy companies. Morgenthau charged Manhattan-based A.R. Baron and 13 ex- Baron officials and brokers in May 1997 with manipulating stock prices, conducting unauthorized stock purchases and refusing to obey customers' sale requests from 1991 to 1996. A.R. Baron is now liquidating under the supervision of U.S. Bankruptcy Court in Manhattan. --Betsy Jelisavcic in New York State Supreme Court, through the Washington newsroom (202) 624-1824/ep Story illustration: To graph the recent performance of Bloomberg Financial Market's Wall Street index, type BBWS <Index> GP.