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

To: Frank_Ching who wrote (6854)	2/19/2000 12:09:00 AM
From: Sir Auric Goldfinger	Read Replies (1) \| Respond to of 10354

ZSUN is a rear orifice company. "New York Broker Is Accused Of Running 'Boiler Room' By JUDITH BURNS Dow Jones Newswires A New York City brokerage firm, its owners and brokers were arrested on charges of using "boiler room" tactics to sell $5 million of fraudulent stock in their own company to unsuspecting elderly investors. On Thursday, one day before the film "Boiler Room" is set to open, the U.S. District Attorney for the Southern District of New York announced a 14-count criminal indictment against four men alleged to have run a real-life boiler room. J.P. Gibbons & Co. Inc., formerly known as the Golden Lender Financial Group, also was charged, and a related civil suit was filed by the U.S. Securities and Exchange Commission. U.S. District Attorney Mary Jo White said the indictments underscore the fact that prosecutors will crack down on brokerage firms, "especially where the [illicit] conduct is pervasive and orchestrated by top management." "This was really an outlaw firm," said Wayne Carlin, an assistant regional director in the SEC's New York office. "They were selling stock in themselves, using the usual high-pressure boiler-room tactics." From January 1998 through November 1999, those tactics pulled in at least $5.2 million from investors, many of them elderly and living on fixed incomes, prosecutors charged. Investors who paid $5 to $10 per share for Golden Lender stock were told that an initial public offering of was imminent, yet "the firm never went public," said Mr. Carlin. In fact, Golden Lender amassed losses of $5.7 million from 1996 through September 1999, and its finances were so shaky that its outside auditors questioned whether the firm would remain solvent, authorities said. The brokerage firm reportedly faces a number of pending civil lawsuits that allege it mismanaged client accounts, charged excessive commissions, engaged in unsuitable trades, failed to pay rent on its office space and discriminated against certain employees. While the company was going broke, authorities said its two owners, Aron Bronstein, 29 years old, of Alpine, N.J., and Tomer Yuzary, 30, of Tenafly, N.J., took $5.6 million in salaries, bonuses and loans. Two brokers, Roman Sakharovich, also known as Roman Sakh, 22, of Staten Island, and Iosif Pak, also known as Joseph Pak, 23, of Manhattan, were charged along with Messrs. Bronstein and Yuzary. All four face criminal charges of conspiracy to commit securities fraud and numerous counts of securities fraud. Such charges carry a maximum sentence of five years' imprisonment, and fines of $250,000 or two times the losses involved, whichever is greater. The civil charges alleged the defendants violated federal antifraud laws and sold unregistered stock. The SEC is seeking to permanently bar the defendants from future securities-law violations, disgorge their allegedly ill-gotten gains and require them to pay civil fines. David Touger, a New York attorney representing broker Mr. Sakh, said his client will mount a vigorous defense against the charges. "We've been furnished with the charges by the government and we deny each and every one of them," Mr. Touger said. "We are not a boiler room." Attorneys for owners Messrs. Bronstein and Yuzary didn't return phone calls seeking comment, and Mr. Pak's attorney couldn't be reached for comment."