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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: steve h who wrote (58270)	7/24/2000 9:10:29 PM
From: StockDung	Respond to of 122087

Golf Emporium CEO gets prison term for embezzling NEW YORK, July 24 (Reuters) - The head of Golf Emporium Corp. was sentenced on Monday to 41 months in prison for embezzling customer funds and selling securities in a fraudulent private placement. Golf Emporium president and chief executive officer Frederick Tropeano, 34, was also ordered to pay $4.7 million in restitution by U.S. District Judge Shira Scheindlin. In February, Tropeano had pleaded guilty in Manhattan federal court to one count of committing fraud in the offer and sale of securities. According to the charges and his guilty plea, Tropeano began distributing a private placement memo to investors in February 1998 offering 500,000 shares of Golf Emporium at $2 per share. The company professed to sell and market golf equipment and related products. In an effort to get investors to buy the securities, he misled them by saying efforts were being made to take the company public, that the necessary documents had been filed with the Securities and Exchange Commission and that the initial public offering would take place in June 1999. In fact, no such steps had been taken. According to the charges, Tropeano falsely stated that Golf Emporium had entered into a business agreement that would add $8 million to its revenues, that it had exclusive licensing agreements with other golf apparel and equipment companies, and that Golf Emporium's assets included $1.9 million worth of inventory. As part of the scheme, he told potential investors that Golf Emporium had hired Chuck Daly, former head coach of the Detroit Pistons, Orlando Magic and New Jersey Nets professional basketball teams, as a consultant. Prosecutors said this representation was also a lie. 18:49 07-24-00