Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : The Hartcourt Companies, Inc. (HRCT) -- Ignore unavailable to you. Want to Upgrade?

To: Ice Cube who wrote (463)	12/14/1999 9:44:00 PM
From: Sir Auric Goldfinger	Read Replies (1) \| Respond to of 2413

Dude, long time no see! 'Cha been up to? Anyway, here's some info on one of the manips in this POS, PGON: " financialcounsel.com MORE BROKERAGE FIRMS PENALIZED Several brokerage firms recently have joined Olde Discount in the unenviable position of having been penalized for customer abuses. These firms are VTR Capital, Inc. (now known as Fairchild Financial Group, Inc.), Lexington Capital Corporation (now known as Preston Langley Asset Management), and Paragon Capital Corporation. Readers may remember the significant customer abuses that the Securities and Exchange Commission (SEC) found against Olde Discount. In a consent decree, the SEC levied substantial fines and suspensions against the firm and some of its principals (including a $1 million fine and a 12 month suspension against the firm's very founder and chairman, Ernest Olde). See "SEC case reveals 'egregious' abuses at brokerage firm", Law Bulletin, 9/25/98. Readers should remember that Olde Discount has waived certain defenses against investors filing arbitration claims to recover their investment losses, but investors must file those claims by March 9, 1999 to receive the special treatment. VTR Capital has joined the club of disrepute. In December, the National Association of Securities Dealers (NASD) censured and fined the brokerage firm and its former president and owner $100,000. The firm has agreed to pay $300,000 in restitution and interest to nearly 150 customers in 30 states including Illinois. The abuse alleged was that the firm participated in an illegal distribution and fraudulent manipulation of a common stock named Interiors, Inc. In addition, the NASD alleged that the firm paid additional compensation to its brokers who used high pressure sales tactics. In November, Lexington Capital Corporation and its president were censured and fined $250,000 and ordered to pay more than $200,000 in restitution and interest to nearly 200 investors. Another broker was fined $100,000. The NASD alleged that they collaborated to defraud investors and impeded regulatory scrutiny. Specifically, the firm was charged with violating federal securities laws when it sold thousands of shares of a penny stock, U.S. Bridge Corp., to nearly 200 investors without making required risk and suitability disclosures, and without determining whether the investors were suitable for the penny stock. Additionally, in the stock of Crown Laboratories, Inc., there were fraudulent and excessive markups in sales to customers - from 47% to 70%! The final new member of the club of disrepute is Paragon Capital Corporation. In November, the NASD censured and fined the brokerage firm and its president $135,000. The NASD charged that the firm and its president failed to establish, maintain and enforce required written supervisory procedures relating to trade reporting, customer limit orders, Small Order Execution System (SOES), best execution, registration of persons and record keeping. The NASD and the SEC regularly post results of their prosecutions on their websites, as well as a host of other information worth reading.