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

To: Sir Auric Goldfinger who wrote (9071)	8/1/2000 4:57:56 PM
From: StockDung	Read Replies (1) \| Respond to of 10354

Stock Promoter Robert Brennan Indicted in Bankruptcy Fraud Case Trenton, New Jersey, Aug. 1 (Bloomberg) -- Former stock promoter Robert E. Brennan was charged with bankruptcy fraud today after authorities arrested the former owner of First Jersey Securities Inc. at his Colts Neck, New Jersey, home. Prosecutors allege in separate state and federal indictments that Brennan, 56, tried to hide from creditors more than $500,000 in Las Vegas casino chips that he amassed before filing for personal bankruptcy protection in 1995. Brennan, who has battled civil charges that he duped small investors in a notorious penny stock fraud from the early and mid- 1980s, was ordered held on $250,000 bail on state charges of theft and fraud, authorities said in a statement. He is to be arraigned Thursday on federal charges on making false statements in a bankruptcy proceeding. ``Mr. Brennan is learning how seriously we view lying to the bankruptcy court,'' U.S. Attorney Robert Cleary said. ``You cannot say under oath that you can't afford to pay your debts and then walk away with a half a million dollars from a casino cashier window.'' Brennan filed for personal bankruptcy in August 1995, seeking protection from creditors including the Securities and Exchange Commission. Three weeks earlier, the SEC won a judgment against Brennan in U.S. Court in New York for more than $74 million. Brennan in June 1999 settled civil claims that he made $300 million in profits on penny stocks he controlled by manipulating prices and using illegal high-pressure sales tactics from 1982 to 1985. Brennan denied wrongdoing but agreed to a finding that he used ``substantial influence'' at two brokerages to make ``unreasonably excessive profits'' in stocks in which he held an undisclosed interest. He accepted a lifetime ban on securities trading in New Jersey and agreed to pay $45 million to investors. Investors were to collect another $55 million from the 1995 bankruptcy liquidation of Brennan's estate. Brennan was once chairman of International Thoroughbred Breeders, which owned and operated race tracks throughout New Jersey. He faces up to 15 years in prison if convicted. Aug/01/2000 16:12 ET For more stories from Bloomberg News, click here. (C) Copyright 2000 Bloomberg L.P.