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 : Zia Sun(zsun) -- Ignore unavailable to you. Want to Upgrade?

To: jjs64 who wrote (7256)	4/4/2000 7:07:00 PM
From: Sir Auric Goldfinger	Read Replies (2) \| Respond to of 10354

SEC Alleges Fraud By Two Internet Stock Promoters-A federal court judge on Tuesday agreed to grant a temporary restraining order against two men who allegedly used the Internet to fraudulently promote shares in dozens of microcap stocks. Named in the Securities and Exchange Commission case are Stephen Marek, 53 years old, known online as "BigProfitNews" and "Bulls-Eye Stocks," and Dominic Roelandt, a 22-year-old Belgian who uses the name "Coldstocks." The SEC claims the men touted stocks in 35 microcap companies to thousands of investors through free e-mail newsletters and on Internet Web sites. However, exactly how many of those investors followed the advice isn't clear. Online messages contained false and misleading statements about Marek's and Roelandt's track record for stock picks and didn't adequately disclose the fact that both men were paid to promote the stocks and planned to sell their own holdings after issuing a "buy" recommendation, the SEC added. "Typically, the stock would rise after their touts and they would sell into those touts," said Donald Hoerl, an associate regional administrator in the SEC's Denver office. Roelandt reaped $41,958 on his stock sales, and Marek pulled in $100,835 in profits, the SEC claimed. Stocks recommended by the promoters include Canceroption.com Inc. (CAOPE), Rockport Healthcare Group Inc. (RPHL) and Smartire Systems Inc. (SMTR), according to documents filed in federal court. The companies themselves weren't charged with any wrongdoing in the SEC complaint. The U.S. District Court in Phoenix agreed to an SEC request for a temporary restraining order that bars the two men violating from federal securities laws, freezes Marek's assets and requires him to account for and repatriate funds. Marek, formerly of Salome, Ariz., now lives near Victoria, Canada, and the SEC credited the British Columbia Securities Commission for its assistance in the case. Roelandt's whereabouts aren't known, according to the SEC. Neither Roelandt nor Marek are believed to be represented by attorneys and the two couldn't be reached directly for comment.