Jones, Jensen & Co. Make the Front Page
gamblingmagazine.com
Five-year pump and dump scheme reported in the Wall Street Journal
THE BIZARRE SAGA of JONES AND JENSEN REVISITED
A story about another company connected with Starnet auditors, Jones and Jensen that made the front page of the Wall Street Journal. Gambling Magazine's private investigator has uncovered more damaging material about a company known as E-Pawn.com, Inc.
Here's a quote:
SECURITIES EXCHANGE ACT OF 1934
RELEASE NO. 42938 / June 14, 2000
"The Commission temporarily suspended trading in the securities of E-Pawn because of questions that have been raised about the accuracy and adequacy of publicly disseminated information concerning, among other things, the identity of the persons in control of the operations and management of the company and because the recent market activity in E-Pawn securities may be the result of manipulative conduct or other illegal activity."
(http://www.sec.gov/enforce/tsusp/34-42938.htm)
HERE IS YET ANOTHER FRADULENT COMPANY ASSOCIATED WITH JONES AND JENSEN. E- PAWN.COM INC filed this 10KSB on 04/24/2000
"The Company had no disagreement with its auditors, Jones Jensen & Company LLC, relating to any matters concerning its accounting procedures or policy. The Company accepted the resignation of Jones Jensen & Company LLC, and on March 16, 2000, the Company engaged the firm of Feldman Sherb Horowitz & Co., P.C., Certified Public Accountants, of New York, New York and Boca Raton, Florida to serve as its auditor
…
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
SECURITIES EXCHANGE ACT OF 1934
RELEASE NO. 42938 / June 14, 2000
The Securities and Exchange Commission announced the temporary suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934 (the "Exchange Act"), of trading of the securities of E-Pawn.com, Inc. ("E-Pawn"), of Coral Springs, Florida at 9:30 a.m. on June 14, 2000, and terminating at 11:59 p.m., on June 27, 2000…
The Commission cautions broker-dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company.
Further, brokers and dealers should be alert to the fact that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination of the trading suspension, no quotation may be entered unless and until they have strictly complied with all of the provisions of the rule. If any broker or dealer has any questions as to whether or not he has complied with the rule, he should not enter any quotation but immediately contact the staff of the Securities and Exchange Commission in Washington, D.C. If any broker or dealer is uncertain as to what is required by Rule 15c2-11, he should refrain from entering quotations relating to E-Pawn's securities until such time as he has familiarized himself with the rule and is certain that all of its provisions have been met. If any broker or dealer enters any quotation in violation of the rule, the Commission will consider the need for prompt enforcement action.
If any broker-dealer or other person has any information which may relate to this matter, Robert Knuts, Senior Trial Counsel, in the Northeast Regional Office of the Securities and Exchange Commission should be telephoned at 212-748-8192.
…
The complaint enabled the government to halt trading of Internet companies Wamex Holdings Inc., with an $184-million market capitalization, and E-Pawn.com Inc., which had a capitalization of $198 million. Wamex was expected to launch an unauthorized independent trading system on July 4. During a press conference to release the charges, the government got a chuckle when it showed a preview of a Wamex advertisement that said "Who's at risk, you."
Here's the full story:
120 charged in biggest securities fraud crackdown in US history
Story Filed: Wednesday, June 14, 2000 4:55 PM EST
New York--June 14--Members of the five largest organized crime families teamed up with seven brokerage firms to commit a micro-cap securities manipulation that defrauded investors out of about $50 million, federal prosecutors alleged Wednesday in what was described as the biggest securities fraud crackdown in U.S. history.
The U.S. Attorney's office criminally charged 120 people, of which the Securities and Exchange Commission sued 63, for engineering a nationwide scheme to manipulate public and privately held securities in an elaborate five-year pump and dump scheme.
According to the charges, defendants would control large blocks of securities they obtained for free or at very discounted prices and sell them to investors at artificially inflated prices.
At the heart of the scheme was allegedly DMN Capital Investments Inc.--which Manhattan U.S. Attorney Mary Jo White called "truly the investment bank to the crooked and the corrupt--using traditional "boiler room" tactics as well as the Internet to promote the securities. Stocks were touted on the World Wide Web as "dot.coms" to induce investors, according to the complaint.
The allegations against DMN, which was controlled by members of the Bonanno and Colombo crime families, were revealed in a ten-month undercover investigation in which "witnesses posed as willing participants in ongoing criminal schemes," and recorded th e actions at the bank.
DMN, which worked with New York's other top three crime families, allegedly offered its services to any deal "as long as it was illicit." The list of associates reads like "a virtual who's who of securities violators," according to White, including investment advisers, company executives, lawyers and accountants.
The scheme worked in a circle with DMN in the center. Organized crime members who controlled the "investment bank" infiltrated the brokerage firms which then artificially increased the prices of select securities that it sold to investors for profits that were returned to DMN and shared with the brokers.
SEC Enforcement Director Dick Walker said the case, "is a study of classic tools of stock manipulation plus new Internet tools" that earned defendants an estimated $18.5 million in illicit profits.
Walker said the complaint enabled the government to halt trading of Internet companies Wamex Holdings Inc., with an $184-million market capitalization, and E-Pawn.com Inc., which had a capitalization of $198 million. Wamex was expected to launch an unauthorized independent trading system on July 4. During a press conference to release the charges, the government got a chuckle when it showed a preview of a Wamex advertisement that said "who's at risk, you."
Of the 120 defendants charged, 21 were charged with participating in a corrupt enterprise or RICO, for allegedly engineering a scheme to manipulate eight publicly traded securities with the help of brokers, who were bribed to participate.
The enterprise controlled various New York City area brokerages where they "engaged in prearranged trades, paid secret bribes to corrupt stock brokers, and used 'no net sale' and other 'boiler room' tactics," to pump up the stock prices in time to sell at a considerable profit, according to the charges. Brokers who reneged on the deal were subject to strong-arm tactics such as beatings, threats or in one instance a solicitation of murder, the complaint alleged.
The enterprise was allegedly comprised of members of both the Bonanno and Colombo crime families who controlled crews of brokers at firms including, First Liberty Investment Group Inc, William Scott & Co and Bryn Mawr Investment Group.
A New York detective was also allegedly involved in scheme and used his position as Detective' Endowment Association treasurer to further the scheme. Those firms allegedly also included Atlantic General Financial Group and Meyers Pollock and Robbins, which has been charged in similar schemes alleging the mob's infiltration of Wall Street. Representatives of the firms either declined comment or were unavailable.
The eight securities were Spaceplex Amusement Centers International, Reclaim Inc, Beachport Entertainment Corp, International Nursing Services, Leasing Edge Corp, Globus International Resources Corp, Innovative Medical Services and Accessible Software.
Those same RICO defendants were also charged with manipulating the private placement of three securities, including one by Ranch*1 Inc., a chain of fast food restaurants. Ranch*1's top two executives were charged in scheme and are also allegedly members of the Colombo Crime family.
Defendants, if convicted, could face between five and 80 years.
Among those charged were a total of 57 stock brokers, both licensed and not, three broker recruiters, 12 stock promoters, 30 company insiders, two accountants, an attorney, investment advisor, hedge fund manager and 10 members of organized crime families. There were a total of 19 publicly and 16 private securities used in the alleged scheme involving all the defendants.
FBI Assistant director Barry Mawn said the "defendants were as diverse as the crimes they are charged with," which include securities and wire fraud, murder solicitations, wire fraud, pension fund fraud, extortion, money laundering, bribery, and witness tampering.
Although the crimes varied the organized crime families remained the same. "Whether it is the fish market or the stock market," Mawn said, "they bring along the traditional tools of the trades; violence and the threat of violence." |
