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

To: RockyBalboa who wrote (8800)	7/17/2000 3:30:04 PM
From: StockDung	Respond to of 10354

Being accumulated. LOL ->KNGI - Who said that? I did, it has not traded for months and now it trades 9000 shares at .01. $90 worth of stuck

To: RockyBalboa who wrote (8800)	7/17/2000 3:43:31 PM
From: Sir Auric Goldfinger	Read Replies (1) \| Respond to of 10354

All-Tech, Stock USA Day-Trading Firms Charged by NASD Washington, July 17 (Bloomberg) -- Day-trading firms All-Tech Direct Inc. and Stock USA Inc. were charged by regulators with supervisory failures, including All-Tech's widespread use of allegedly misleading advertising. Montvale, New Jersey-based All-Tech, one of the largest day- trading firms, and San Diego-based Stock USA said they plan to contest the National Association of Securities Dealers' charges. The NASD complaints come as day-trading firms, which train investors on their premises to make dozens of rapid-fire trades each day, have come under increasing scrutiny from regulators and Congress. The NASD accused All-Tech and its chairman, Harvey Houtkin, of making misleading statements in print and radio advertisements, on television and the firm's Web site, and in a book. Among Houtkin's statements cited were that ``day trading gives one unlimited earnings potential'' and that ``most of my customers have enjoyed successes virtually unheard of in the trading community.'' The NASD also noted that All-Tech claimed that ``three in ten'' and ``four in ten'' people trained as day traders become successful. The NASD contended that All-Tech lacks supporting data and customer records to back these claims, and does not have written procedures for determining the accuracy of advertising statements. ``We're reviewing the charges with our outside attorneys and we are confident that we will prevail in an impartial forum,'' said All-Tech general counsel Linda Lerner. A study by state securities regulators found last year that 70 percent of the traders at All-Tech's Massachusetts office lost money. All-Tech also was charged with failing to properly supervise employees who arranged $131 million in loans between customers when their account balances fell below minimum thresholds. Some customers were repaid late or not at all, the NASD alleged. Some of these loans involved fees ``at usurious rates'' and employees who weren't properly registered with authorities, the NASD alleged. All-Tech also let Jeffrey Sadowski in its Chicago branch provide training and execute trades for customers even though he was barred from the securities industry by the Securities and Exchange Commission, the NASD said. The NASD complaint charged Sadowski, 52, with violating the SEC's 1988 order. Sadowski's lawyer couldn't be reached for comment. Stock USA allowed a person to recruit its customers and give them investment advice even though he wasn't properly registered and was barred from associating with a brokerage because of a criminal conviction, the NASD alleged. The person cited by the NASD was Harry Edward Bassett III, who pleaded guilty in 1996 to making a false workers' compensation claim, a misdemeanor, the NASD alleged. He was officially an employee of Sagamore Capital Trading Inc., which occupied part of Stock USA's Roslyn, New York office. The NASD alleged Bassett made announcements to a roomful of Stock USA traders suggesting that they watch certain stocks, advised one customer about specific trades and conducted on-site seminars. Bassett couldn't be reached for comment. ``This is an example of the NASD attempting to overreach in an area that's real popular right now -- day trading,'' Stock USA lawyer Jeffrey Kob said. ``We're not aware of any customer complaints or any customer losses.'' Also charged was Stock USA president and principal owner Ralph Mann. Almost a year ago, disgruntled day trader Mark Barton went on a rampage at two Atlanta day-trading firms, one of which was an All-Tech branch office, killing 12 people and wounding 12 others before killing himself. Last February, the SEC accused All-Tech of making 103 unsecured loans of more than $3.6 million to customers to let them keep trading when their account balances fell below required levels. The firm is contesting those charges. Last week, the SEC approved new rules requiring day-trading firms to screen customers on their qualifications. About 7,000 day traders in the U.S. account for as much as 10 to 15 percent of Nasdaq Stock Market volume, a congressional study has found. The Electronic Traders Association, an industry group, says its member firms make clear to prospective clients that they face risks -- and that only disciplined, market-savvy people should try day trading, and then only if they have money they can afford to lose. --Neil Roland and Judy Mathewson in Washington (202) 624-1868 or nroland@bloomberg.net /rp