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To: Mike E. who wrote (269)	8/8/2000 3:46:58 PM
From: StockDung	Respond to of 428

2. BENOU, ROBERT S. OFF 105,000 144 5/2/00 - $0.29 - - 5/19/00 They can start with buying the insiders shares. Guess they need someone to buy them. LOL

To: Mike E. who wrote (269)	8/17/2000 5:23:59 PM
From: StockDung	Respond to of 428

IAR IS THE FIRM THAT TOOK CON-O-LOG PUBLIC. VTR IS THE FIRM THAT CON-O-LOG'S MAIN FRAUDSTER WAS ALLEDGED TO BE RUNNING. -------------------- Brokers Fined $25,000 Each by NASD Appeals Panel in VTR Case 8/17/0 16:3 (New York) Brokers Fined $25,000 Each by NASD Appeals Panel in VTR Case Washington, Aug. 17 (Bloomberg) -- Two brokers charged in 1998 for their roles in a $400,000 stock manipulation involving a New York brokerage were each fined $25,000, the National Association of Securities Dealers said Thursday. An NASD appeals panel ruled that Howard R. Perles, a trader at IAR Securities Corp., and Laurence M. Geller, a trader at Wien Securities, aided and abetted VTR Capital Inc. in fraudulently manipulating the stock of Interiors Inc., a Mount Vernon, New York home furnishings company whose common stock is listed on Nasdaq. In so doing, NASD's National Adjudicatory Council (NAC) reversed a prior hearing panel's decision to dismiss the charges against Perles and Geller. NAC concluded that the two engaged in ``prearranged, matched trading'' with VTR Capital, now called Fairchild Financial Group Inc., in separate instances, over the course of three days. Lawyers for the two men said they plan to appeal the panel ruling to the Securities and Exchange Commission. Specifically, NAC said the two traded Interiors stock in large volume back and forth with VTR Capital, when Interiors stock was trading thinly, NAC said. Then, they accumulated large short positions that were ``economically irrational'' given the large risk and razor-thin profits that they were making, NAC said. Also, the two traded Interiors stock with VTR Capital in a ``symmetrical'' pattern, NAC said. Interiors, whose common stock is listed on Nasdaq, is a Mount Vernon, New York, home furnishings company. Appeal Planned ``The NASD's decision to impose sanctions against Mr. Perles is directly contrary to clear legal precedent,'' said Perles' lawyer, Marc Dorfman, a partner with Freedman, Levy, Kroll & Simonds in Washington. ``Additionally, the decision is unsupported by the evidence. Accordingly, Mr. Perles expects to prevail on appeal.'' Jeffrey Rosen, an attorney for Geller DeMartino Finkelstein Rosen & Virga in Washington, said, ``We respectfully disagree with the decision. We believe that the the decision of the first hearing panel that Mr. Geller did not aid and abet fraudulent conduct was correct. Accordingly, Mr. Geller to prevail in the forthcoming appeal before the SEC.'' VTR Capital and its president Edward McCune agreed in December 1998 to pay $400,000 to settle NASD charges in the matter. NAC warned that aiding and abetting a manipulation violates NASD rules requiring market participants to adhere to ``high standards of commercial honor and just and equitable principles of trade.'' ``Perles and Geller rejected commercial honor and engaged in an unjust and inequitable scheme,'' the council said. NAC, however, did uphold the earlier hearing panel's dismissal of charges that Perles and Geller aided and abetted VTR in an unregistered distribution of Interiors stock. NASD enforcement officials had not proved that the two men were aware that VTR was engaged in an unregistered distribution, the council said. In addition the fines, Perles and Geller each were required to requalify as general securities representatives. Perles was suspended for one year and Geller for 30 business days. NAC is a 14-person committee made up of seven industry and seven non-industry representatives that meets bi-monthly to hear appeals of hearing panel decisions and address policy matters. --Vicky Stamas in Washington at (202) 624 1958 or vstamas@bloomberg.net /ge

To: Mike E. who wrote (269)	9/10/2000 11:51:15 PM
From: StockDung	Respond to of 428

"Warren Schreiber, a former registered representative with VTR Capital, who was added as a defendant in the expanded charges, also pleaded guilty on Friday." "The indictment charged that Pace, Schreiber and others secretly obtained control over VTR including dictating which public offering the firm would underwrite and the terms of the public offerings." Randolph Pace pleads guilty in Sterling Foster scheme NEW YORK, Sept 8 (Reuters) - The man accused of secretly owning the scandal-plagued brokerage Sterling Foster & Co. pleaded guilty on Friday to his role in a scheme that cheated investors out of millions of dollars. Randolph Pace, 54, pleaded guilty in Manhattan federal court to 13 counts of securities fraud violations that expose him to a possible maximum sentence of up to nine years in prison. U.S. District Judge Loretta Preska set a sentencing date of Dec. 21. Pace had been indicted in 1998 for controlling Sterling Foster, the Long Island, N.Y.-based brokerage that was forced out of business by a gamut of securities fraud charges ranging from unlawful sales practices to fraudulent public offerings. Pace was barred from associating with any National Association of Securities Dealer member firms when Sterling Foster was created in 1994. Prosecutors said he had been suspended from the industry at least three different times. He is also a former principal of the defunct Rooney, Pace broker-dealer that left the securities business in 1987 because of initial public offering fraud charges. The indictment grew out an expanding probe by federal and state authorities into abuses by broker-dealers who sell the stocks of small companies. In 1997 regulators from 20 states accused 14 brokerages -- including Sterling Foster -- of using fraudulent high-pressure telephone tactics to sell so-called "penny" or low priced stocks. In 1996, the National Association of Securities Dealers filed an administrative complaint against Sterling Foster and 15 of its principals alleging they manipulated trading and used unlawful sales practices to generate huge illicit profits from three small stock offering. The indictment, which was expanded last year, charged Pace and others with cheating investors out of $200 million through fraudulent public offerings marketed by Sterling Foster. Warren Schreiber, a former registered representative with VTR Capital, who was added as a defendant in the expanded charges, also pleaded guilty on Friday. The indictment charged that Pace, Schreiber and others secretly obtained control over VTR including dictating which public offering the firm would underwrite and the terms of the public offerings. 18:28 09-08-00

To: Mike E. who wrote (269)	9/10/2000 11:53:07 PM
From: StockDung	Read Replies (1) \| Respond to of 428

Two Men Plead Guilty to Cheating Investors at Sterling Foster New York, Sept. 8 (Bloomberg) -- Two men affiliated with Sterling Foster & Co., a defunct Melville, New York brokerage, pleaded guilty to charges that they helped cheat investors of $200 million by manipulating the price of stocks the firm underwrote and sold. Sterling Foster, which once had 275 brokers, closed after the FBI and U.S. Postal Inspectors, armed with search warrants, raided its offices in 1997. The firm was secretly controlled by Randolph Pace, the former owner of defunct brokerage Rooney Pace Inc., and two other men, prosecutors said. The secrecy was needed because Pace had been suspended by regulators from working in the brokerage industry for previous violations, prosecutors said. Pace, 54, of Manhattan, pleaded guilty today to 13 counts of conspiracy and securities fraud. Under a plea agreement, the government will seek a sentence of 87 to 108 months in prison. He told Judge Loretta Preska of U.S. District Court in New York that he made $2.9 million from his crimes. Warren Schreiber, 44, of Roslyn Heights, New York, pleaded guilty today to nine counts. He and Alan Novich, an attorney and former dentist, were accused of secretly controlling the company along with Pace. Schrieber will face 63 to 78 months in prison. Novich pleaded guilty last month. Prosecutors accused three men and four other former Sterling Foster executives of engaging in fraudulent sales practices, market manipulation, failing to disclose excessive stock-price mark-ups, and other crimes between 1994 and 1997. Cases against the other defendants are pending. Prosecutors accused Sterling Foster of rigging stock prices by nearly monopolizing trading in those shares. Sterling Foster bought millions of shares at a discount from the issuing companies' insiders shortly after their initial public offerings, enabling the brokerage to control prices, prosecutors alleged. The charges involved Sterling Foster's underwriting or sale of Lasergate Systems Inc., Advanced Voice Technologies Inc., Com/Tech Communication Technologies Inc., Embryo Development, Applewoods Inc. and ML Direct Inc. Preska set sentencing for Pace for Dec. 21. Sep/08/2000 18:00 ET For more stories from Bloomberg News, click here. (C) Copyright 2000 Bloomberg L.P.