Now remember this paragraph as you read the very last news article. Look for everything connected to Electro Optical System Corp.
"The Securities and Exchange Commission last year charged Lehmann and other defendants with distributing false information about companies after Electro Optical System Corp. stock rose from 50 cents to more than $5 per share in one day"
tenkwizard.com
If to ZiaSun, addressed to it at:
Mr. Bryant D. Cragun, President
ZiaSun Technologies, Inc.
205 S. Helix, #68
Solana Beach, California 92075
Page 9 of 13
With copy to Counsel, addressed to:
George G. Chachas, Esq.
Wenthur & Chachas
4180 La Jolla Village Drive
Suite 500
La Jolla, California 92037
204.192.28.3
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15715 / April 21, 1998
SECURITIES AND EXCHANGE COMMISSION V. THOMAS EDWARD
CAVANAGH, U.S. MILESTONE, ELECTRO-OPTICAL SYSTEMS CORP.,
**GEORGE CHACHAS,** **THOMAS R. BROOKSBANK**, WILLIAM N. LEVY,
OPTIMUM FUND, AGIRA TRADING, CUSTOMER SAFETY, S.L.,
CAMBIARES, S.L., CONSTRUCCIONES SOLARIEGAS, S.L., THOMAS A.
HANTGES, COSIMO TACOPINO, ET AL., 98 Civil Action No. 1818
(S.D.N.Y.)
On April 20, 1998, Judge Denise Cote of the United States
District Court for the Southern District of New York entered
a preliminary injunction prohibiting future violations of
Sections 5 and 17(a) of the Securities Act of 1933 and
Section 10(b) of the Securities Exchange Act of 1934 by the
primary perpetrators of a market manipulation scheme in the
stock of **Electro-Optical Systems, Corp. **("EOSC"). Judge
Cote also extended the asset freeze, initially ordered on
March 13, as to all proceeds from the defendants' sales of
EOSC shares as well as to any shares of EOSC that remain in
their custody or control. In a 122-page opinion, Judge Cote
noted that the case "concerns a scheme through which the
defendants reaped millions of dollars in profits at the
expense of the American investor by creating active trading
in the United States securities market without making the
disclosures that were required for the benefit of the
investing public by the Securities Act of 1933."
On March 13, 1998, the Commission filed a complaint alleging
that the defendants defrauded primarily small, on-line
investors of at least $5 million over the course of the
scheme, the profits of which allegedly were distributed
among the 13 defendants and 19 relief defendants. On the
same day, Judge Cote issued a temporary restraining order
which ordered the defendants to cease their fraudulent
activities and froze the assets of the defendants and the
accounts of the relief defendants that contained EOSC stock
or the proceeds from sales of the stock. On March 13 the
Commission also suspended over-the-counter trading of the
securities of EOSC for a single ten-day period.
In her April 20 ruling, Judge Cote found that defendant
Cavanagh was the mastermind and a central figure in the
fraud who controlled various nominee accounts through which
the fraudulent trades were made. Hence, the Commission made
a proper showing that defendants Cavanagh, Milestone,
Customer Safety, Cambiares, Construcciones, and Chachas
violated the antifraud and registration provisions, and that
they may be found liable at trial for disgorgement of
proceeds plus penalties for their violations. The Court
entered preliminary injunctions against each of these
defendants, but based the preliminary injunction against
Chachas on his violation of the registration provisions
only. While Chachas was found to have participated in the
fraud, the Court concluded on the evidence available at this
stage that "the consequences of this litigation have
effectively deterred him" from further fraud violations.
Judge Cote also found that Brooksbank, Hantges, Levy,
Optimum, and Agira violated Section 5 of the Securities Act
and entered a preliminary injunction against Levy based on
the Commission's showing of a likelihood of repetition. The
Court observed that, in particular, Cavanagh and Levy "set
in motion a plan that had little to do with raising funds"
for the company, "but instead was designed to line their
pockets." In addition, defendant Tacopino consented to a
preliminary injunction based on antifraud and registration
violations, and deposited over $350,000 into the registry of
the court pending resolution of the case. The SEC had
earlier withdrawn its request for a preliminary injunction
against EOSC, while requiring the company regularly to
report on it s expenditures.
RE: **THOMAS R. BROOKSBANK **resident agent of Veritas and WORLD TRADE FINANCIAL CORPORATION. BTW Veritas is DQ
Name: WORLD TRADE FINANCIAL CORPORATION
Type: Corporation File Number: 15559-1996 State: NEVADA Incorporated On: July 18, 1996
Status: Current list of officers on file Corp Type: Regular
Resident Agent: THOMAS R. BROOKSBANK (Accepted)
Address: 201 W. LIBERTY STREET
SUITE 1
RENO NV 89502
President: WILLIAM P STRONG
Address: 888 PROSPECT ST
SUITE 330
LA JOLLA CA 92037
Secretary: RODNEY P MICHEL
Address: 1106 SECOND ST
#112
ENCINITAS CA 92024
Treasurer: RODNEY P MICHEL
Address: 1106 SECOND ST.
#112
ENCINITAS CA 92024
Name: VERITAS GROUP LLC, THE
Type: Limited Liability Company File Number: 3581-1998 State: NEVADA Incorporated On: June 26, 1998
Status: Default Corp Type: Limited Liability Company
Resident Agent: **THOMAS R. BROOKSBANK** (Accepted)
Address: 201 W. LIBERTY STREET
SUITE 1
RENO NV 89502
Manager or Member: JASON WILLIAM BIRMINGHAM
Address: 3916 RIVIERA DR.
SAN DIEGO CA 92109
204.192.28.3
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15715 / April 21, 1998
SECURITIES AND EXCHANGE COMMISSION V. THOMAS EDWARD
CAVANAGH, U.S. MILESTONE, ELECTRO-OPTICAL SYSTEMS CORP.,
****GEORGE CHACHAS****, *****THOMAS R. BROOKSBANK*****, WILLIAM N. LEVY,
OPTIMUM FUND, AGIRA TRADING, CUSTOMER SAFETY, S.L.,
CAMBIARES, S.L., CONSTRUCCIONES SOLARIEGAS, S.L., THOMAS A.
HANTGES, COSIMO TACOPINO, ET AL., 98 Civil Action No. 1818
(S.D.N.Y.)
On April 20, 1998, Judge Denise Cote of the United States
District Court for the Southern District of New York entered
a preliminary injunction prohibiting future violations of
Sections 5 and 17(a) of the Securities Act of 1933 and
Section 10(b) of the Securities Exchange Act of 1934 by the
primary perpetrators of a market manipulation scheme in the
stock of Electro-Optical Systems, Corp. ("EOSC"). Judge
Cote also extended the asset freeze, initially ordered on
March 13, as to all proceeds from the defendants' sales of
EOSC shares as well as to any shares of EOSC that remain in
their custody or control. In a 122-page opinion, Judge Cote
noted that the case "concerns a scheme through which the
defendants reaped millions of dollars in profits at the
expense of the American investor by creating active trading
in the United States securities market without making the
disclosures that were required for the benefit of the
investing public by the Securities Act of 1933."
On March 13, 1998, the Commission filed a complaint alleging
that the defendants defrauded primarily small, on-line
investors of at least $5 million over the course of the
scheme, the profits of which allegedly were distributed
among the 13 defendants and 19 relief defendants. On the
same day, Judge Cote issued a temporary restraining order
which ordered the defendants to cease their fraudulent
activities and froze the assets of the defendants and the
accounts of the relief defendants that contained EOSC stock
or the proceeds from sales of the stock. On March 13 the
Commission also suspended over-the-counter trading of the
securities of EOSC for a single ten-day period.
In her April 20 ruling, Judge Cote found that defendant
Cavanagh was the mastermind and a central figure in the
fraud who controlled various nominee accounts through which
the fraudulent trades were made. Hence, the Commission made
a proper showing that defendants Cavanagh, Milestone,
Customer Safety, Cambiares, Construcciones, and Chachas
violated the antifraud and registration provisions, and that
they may be found liable at trial for disgorgement of
proceeds plus penalties for their violations. The Court
entered preliminary injunctions against each of these
defendants, but based the preliminary injunction against
Chachas on his violation of the registration provisions
only. While Chachas was found to have participated in the
fraud, the Court concluded on the evidence available at this
stage that "the consequences of this litigation have
effectively deterred him" from further fraud violations.
Judge Cote also found that Brooksbank, Hantges, Levy,
Optimum, and Agira violated Section 5 of the Securities Act
and entered a preliminary injunction against Levy based on
the Commission's showing of a likelihood of repetition. The
Court observed that, in particular, Cavanagh and Levy "set
in motion a plan that had little to do with raising funds"
for the company, "but instead was designed to line their pockets." In addition, defendant Tacopino consented to a
preliminary injunction based on antifraud and registration
violations, and deposited over $350,000 into the registry of
the court pending resolution of the case. The SEC had
earlier withdrawn its request for a preliminary injunction
against EOSC, while requiring the company regularly to
report on it s expenditures.
Businessmen Killings Baffle Police
By MARTHA RAFFAELE
.c The Associated Press
COLTS NECK, N.J. (AP) - Two Internet penny stock promoters found shot to death had ties to ''shady'' business dealings, which may ultimately have led to their execution-style killings, a prosecutor said.
Alain Chalem, 41, and Mayir Lehmann, 37, were found early Tuesday face down on the bloodstained marble floor of the estate Chalem shared with his girlfriend and her 13-year-old son.
Though investigators have not pinpointed a motive or suspects, Monmouth County Prosecutor John Kaye said the attack likely was at least partly tied to the pair's penny stock Web operation, www.stockinvestor.com, or other ventures.
''It was probably related to the victims' business activities,'' Kaye said, ''and the killer or killers feared something else more than the loss of money.''
The Securities and Exchange Commission last year charged Lehmann and other defendants with distributing false information about companies after **Electro Optical System Corp.** stock rose from 50 cents to more than $5 per share in one day.
Investors eventually lost at least $10 million in that scheme, authorities have said. Lehmann agreed in January to pay $630,000 in penalties.
Between 1994 and 1996, Chalem worked at the brokerage A.S. Goldman, which was indicted in July in New York on charges connected with stock manipulation, forgery and illegal trading. The firm has denied the accusations, and Chalem was not named in those charges.
The men's Web site used mass e-mails to promote penny stocks to prospective investors. In exchange, the partners received commissions or discounted stock from securities firms. The Web site was registered in Panama and managed in Hungary.
''Penny'' or ''micro-cap'' stocks are cheap, highly speculative securities that are vulnerable to investor manipulation. Authorities suspect the victims' Web site was based overseas to avoid SEC scrutiny. Kaye called the men's business practices ''shady.''
Investigators believe at least two gunmen attacked the men late Monday while they were reviewing business papers in the $1.1 million home. Chalem and Lehmann were first crippled by the gunfire, then shot point-blank in their heads, authorities said.
Chalem was shot once in the chest and five times in the head, while Lehmann, of Woodmere, N.Y., was shot in the leg and once in the back of the head, Kaye said. Their cellular telephones were inches from their hands, and they were still ringing on Wednesday.
''People are still calling these people, and we're answering the phone,'' Kaye said.
The home's wrought-iron gates were open and its front door unlocked, but there were no signs of burglary, Kaye said.
Kaye said the ex-husband of Chalem's girlfriend has been eliminated as a suspect and there are few leads, no suspects and no murder weapon.
Chalem had lived on the 16-acre property for up to eight months with his girlfriend. Her father owns the home in this small, wealthy community about an hour from New York City.
The friends who found the bodies said that Chalem had planned to drive to Tennessee and then charter a plane to Florida to meet his girlfriend, authorities said.
The friends told authorities they had talked with both Chalem and Lehmann throughout the day on Monday, then could not reach them later that night.
AP-NY-10-28-99 1209EDT |
