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Technology Stocks : George Gilder - Forbes ASAP -- Ignore unavailable to you. Want to Upgrade?

To: Anthony@Pacific who wrote (3768)	4/29/2000 10:04:00 PM
From: Anthony@Pacific	Read Replies (1) \| Respond to of 5853

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: Anthony@Pacific who wrote (3768)	4/30/2000 8:34:00 AM
From: Taylor Mill	Read Replies (1) \| Respond to of 5853

"What happend 7 years ago isnt going to stop me from asking questions today..Get that through your skulls." Anthony, you are the "ex-con"; you are seeking to "cast stones" at one without a tarnished reputation like your own. Yes, I do believe that one should be forgiven for misdeeds of their youth. However, I do not believe that the way one seeks forgiveness is by manufacturing issues suggesting dishonesty and unethical behaviour on the part of others who have lived their life cleaner than you. I first read George's writings years ago; and his clear concise thinking and writings on technology issues had already established a stellar reputation in the technical journals even before you made your choice to put this permanent blemish on your record. I would have never expected that his newsletter would have become a vehicle for daytraders and others seeking quick bucks from the non-productive sectors of our economy. His audience is not you or your ilk -- and you apparently don't understand the focus is on legitimate technical innovation and not the identification or creation of the next big momentum stock to feed the current frenzy that you associate yourself with. Yet, I agree, you still deserve to be forgiven. I just suggest to you that you are seeking it in the wrong place if you expect to find it through taking your hypocritical pot shots at GG. I suggest you focus your efforts on a few boiler room P&D factories. Clean up a few of them and maybe we will accept that your debt to society has been repaid.