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

To: Sir Auric Goldfinger who wrote (8978)	7/27/2000 3:05:10 PM
From: StockDung	Read Replies (1) \| Respond to of 10354

DH Blair Executives, Brokers Indicted in Nine-Year Fraud New York, July 27 (Bloomberg) -- Fifteen former executives and employees at D.H. Blair & Co., a defunct Wall Street securities brokerage, were indicted for defrauding investors of millions of dollars, partly by manipulating stock prices, in a scheme that ran from 1989 to 1998, the Manhattan District Attorney's Office said. The firm, which shut down in 1998, manipulated initial public offerings and other stocks, engaged in illegal and high-pressure sales tactics to generate excessive commissions, and sold shares at far more than prevailing market prices, according to the 173- count indictment. Those indicted included Kenton Wood, who was the firm's chairman, former vice chairmen Alan Stahler and Kalman Renov, former head trader Vito Capotorto, and 11 brokers who worked at D.H. Blair. In a statement, attorneys for the men said they ``are innocent of these charges, absolutely deny that they are engaged in any criminal activity whatsoever, and anticipate their ultimate vindication.'' The 15 executives and brokers, who surrendered to authorities this morning, are to be arraigned this afternoon in state Supreme Court in Manhattan. They face up to 25 years in prison on the most serious charge of enterprise corruption. Three other former D.H. Blair brokers pleaded guilty to related charges in recent months and have been cooperating with prosecutors. D.H. Blair Investment Banking Corp., which split from the Blair retail brokerage in 1992, is still operating and is not under investigation, prosecutors said. Some of the stocks underwritten by the investment bank were manipulated by the indicted brokers, including Interactive Flight Technologies Inc., Digital Video Systems Inc. and Advanced Aerodynamics and Structures Inc., prosecutors said. In March, the brokerage agreed to create a $2.25 million restitution fund for former customers, in a settlement with state securities regulators. Jul/27/2000 13:44 ET For more stories from Bloomberg News, click here. (C) Copyright 2000 Bloomberg L.P.