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Microcap & Penny Stocks : ECNC (OTC:BB) - eConnect -- Ignore unavailable to you. Want to Upgrade?

To: buffaloha who wrote (7894)	3/24/2000 5:40:00 PM
From: Anthony@Pacific	Respond to of 18222

Somebody please call 911, Buffalohopeless is being poisoned by his own water supply.. Kerplatt!!! March 23, 2000 SEC Files Lawsuit Against eConnect For Allegedly Defrauding Investors By AARON ELSTEIN THE WALL STREET JOURNAL INTERACTIVE EDITION Ten days after suspending trading in eConnect Inc. shares, the Securities and Exchange Commission sued the company for allegedly defrauding investors. The suit, filed Thursday in federal court in Los Angeles, contends that eConnect and its president, Thomas S. Hughes, tried to inflate the company's stock price by disseminating false and misleading press releases. According to the suit, eConnect issued a fraudulent press release Feb. 28 announcing a "strategic alliance" with Empire Financial Group, a Longwood, Fla., brokerage firm. The SEC alleges there was no alliance, but rather a "nonbinding letter of intent" between Empire and a joint venture partner of eConnect. The commission added that a draft press release indicated that eConnect and Empire had signed a "letter of intent," but the wording was changed after Mr. Hughes reviewed it. The SEC also says that the company issued a fraudulent release March 3 stating that eConnect and a partner had established a "unique licensing agreement" with Palm Inc. The release was issued one day after Palm's highly-publicized spin-off from 3Com Corp. The SEC says "Hughes knew that there was no unique licensing arrangement with Palm." The SEC says that eConnect distributed the fraudulent press releases through Business Wire, and posted them on its Web site and on the stock-chat site, Raging Bull. The commission alleges the false press releases caused the price of eConnect's shares, which are quoted on the OTC Bulletin Board, to soar from $1.375 to over $21.875 in two weeks before the SEC suspended trading in the stock March 13. Mr. Hughes, 52 years old, couldn't be reached Thursday, and Michael Sitrick, a spokesman for eConnect, declined to comment because he hadn't seen a copy of the lawsuit. Based in San Pedro, Calif., eConnect makes financial-transaction software and has an online gaming unit, according to the SEC. Investors were alerted to eConnect's rising stock price and press releases days before the SEC suspended trading in the stock. Anthony Elgindy and a person who goes by the name of Steve Pluvia issued separate reports March 10 urging investors to sell their shares because they said the company had issued "false, misleading" press releases, including one about an alleged alliance with Empire Financial. Their work was the subject of an article in the online Journal last week. eConnect issued a press release Monday saying it had hired a lawyer "to provide legal as well as corporate governance counsel" and a public relations firm, which would write, review, and approve all press releases. "This should help ensure that the company's releases are clear and accurate," Mr. Hughes said. On Thursday, eConnect issued another release saying that Stephen E. Pazian had been named president and chief operating officer of the company, effective immediately, and was seeking a chief financial officer. Mr. Hughes remains as chairman and chief executive. Mr. Pazian said, "eConnect must immediately free up Tom's time, so that he can concentrate exclusively on implementing his global vision for eConnect." This isn't the first time a company run by Mr. Hughes has had difficulties with the SEC. In March 1999, the commission filed an action against Betting Inc., whose president was Mr. Hughes, for failing to file an annual and quarterly report. Betting Inc. consented to "permanent injunctive relief." Betting Inc. later changed its name to eConnect.

To: buffaloha who wrote (7894)	3/24/2000 8:31:00 PM
From: uthabros	Read Replies (1) \| Respond to of 18222

Buff, I am new here but have enjoyed your factual posts. I believe what you are saying and I will hold my shares also but the fact is that A@P AND CO are winning here whether by hook or crook, because the PR put out by the SEC will affect alot of share holders who want to decrease their losses.I don't know wherther tom & co are frauds or not but this stock is going to suffer and nothing you or anyone can say will help it now. That is wishfuil thinking. So for me, I'LL just hold and let the dice roll. Good trading