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Non-Tech : Meet Gene, a NASDAQ Market Maker -- Ignore unavailable to you. Want to Upgrade?

To: LPS5 who wrote (440)	8/5/2000 1:13:31 AM
From: Wayners	Read Replies (1) \| Respond to of 1426

You're right it doesn't happen: The Securities and Exchange Commission ("Commission") today filed a settled civil injunctive action alleging illegal insider trading by Anthony Pollak, 31, an Israeli citizen and resident who was formerly a financial analyst at Chemical Securities, Inc., Yosi Rubenstein, 44, and Michael Shemmer, 54, formerly partners in Rubenstein-Shemmer Investments, a Tel Aviv money management firm. The Complaint, filed in the United States District Court for the Southern District of New York, alleges that from February through July 1995, Pollak repeatedly misappropriated material nonpublic confidential information to which he had access at Chemical, and tipped Rubenstein and Shemmer to buy the securities of five separate issuers: DSG International Ltd., Truck Components Corp., Playtex Products, Inc., Maxus Energy Corp., and Best Products Company, Inc. The securities were allocated to Rubenstein's and Shemmer's own accounts, to an account in Pollak's name, and to accounts of other customers in the firm. The Complaint alleges that the trades based on Pollak's tips generated profits of $542,177. Without admitting or denying the Commission's allegations, the defendants agreed to a settlement in which they will, among other things, disgorge those profits.

To: LPS5 who wrote (440)	8/13/2000 1:41:15 PM
From: Janice Shell	Read Replies (1) \| Respond to of 1426

If you don't follow the absurd MMManip board at RB, you may have missed out on an interesting cause of complaint. A recent example of "manipulation" was offered by a guy who's in AXGI. His account of what happened wasn't entirely clear, but it seems he was (mysteriously) pissed off because his buy order for 19,000 shares went throught at the bid and was called a "sell" on his Level II screen. He's convinced that "the MMs" (no, I haven't looked to see how many there are) are controlling the stock. To what conceivable end? You go take a quick look at AXGI. The thing closed on Friday at .085. Woo woo. You take a rough guess at the real dollar amount of trading we're talking, and at best it's around $40K. How on earth could, say, five or six MMs make any money at all by "manipulating" it? All things considered, it's surprising anyone's even willing to make a market in issues like this one. (And of course there are many many others that have even less liquidity...)