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Microcap & Penny Stocks : The Hartcourt Companies, Inc. (HRCT) -- Ignore unavailable to you. Want to Upgrade?

To: Investorman who wrote (1108)	9/6/2000 12:00:22 PM
From: StockDung	Read Replies (1) \| Respond to of 2413

SEC v. Torsten Prochnow d/b/a/ Stockreporter.de, Dennis C. Hass and World of Internet.com AG (U.S. District Court, Northern District of California) (SEC Contact: Donald Hoerl, 303-844-1060) The SEC alleges that Torsten Prochnow and Dennis C. Hass, residents of Germany, touted the stocks of approximately 64 U.S. public companies under the name Stockreporter.de. The touts have been disseminated through postings on Stockreporter.de's Internet website and numerous press releases. As set forth in the complaint, Prochnow, Hass and WorldofInternet.com AG (a German corporation owned by Prochnow and Hass) targeted U.S. investors and these investors purchased the touted stocks based on the Stockreporter.de recommendations. The Stockreporter.de website contained false statements concerning the purportedly "long-term" trading intentions of Stockreporter.de's principals. The website also contained baseless financial and/or stock price projections concerning one of the touted issuers. The website also falsely stated that Stockreporter.de's principals were not compensated for their touting, and both the website and press releases failed to disclose both the nature and source of the compensation. The touts caused the price and trading volume of the stock of certain issuers to increase significantly in the short term. Baseless recommendations resulted in price and volume for 28 stocks increasing an average of between 28 percent and 390 percent. On at least 15 occasions, the SEC alleges that Prochnow and Hass sold their holdings of the touted stocks into the resulting inflated market, realizing profits of $111,530. Without admitting or denying the SEC's allegations, Prochnow and Hass have agreed to the entry of an order that enjoins them from future violations of Section 17(b) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b- 5 under the Exchange Act. The order also requires them, jointly and severally, to disgorge $111,520 plus prejudgment interest, and for each to pay a civil penalty of $50,000. sec.gov

To: Investorman who wrote (1108)	9/6/2000 12:04:07 PM
From: StockDung	Read Replies (2) \| Respond to of 2413

BTW , Aaron Elstien confirmed from Dr. Phan of Hartcourt that stockreporter.de was paid about the same as as DDinvestor to write the glowing buy recommendation

To: Investorman who wrote (1108)	9/6/2000 1:19:48 PM
From: StockDung	Read Replies (1) \| Respond to of 2413

Pump&Dump.con:Tips for Avoiding Stock Scams on the Internet sec.gov One of the most common Internet frauds involves the classic "pump and dump" scheme. Here's how it works: A company's web site may feature a glowing press release about its financial health or some new product or innovation. Newsletters that purport to offer unbiased recommendations may suddenly tout the company as the latest "hot" stock. Messages in chat rooms and bulletin board postings may urge you to buy the stock quickly or to sell before the price goes down. Or you may even hear the company mentioned by a radio or TV analyst. Unwitting investors then purchase the stock in droves, creating high demand and pumping up the price. But when the fraudsters behind the scheme sell their shares at the peak and stop hyping the stock, the price plummets, and investors lose their money. Fraudsters frequently use this ploy with small, thinly traded companies because it's easier to manipulate a stock when there's little or no information available about the company. To steer clear of potential scams, always investigate before you invest: Consider the Source When you see an offer on the Internet, assume it is a scam, until you can prove through your own research that it is legitimate. And remember that the people touting the stock may well be insiders of the company or paid promoters who stand to profit handsomely if you trade. Find Out Where the Stock Trades Many of the smallest and most thinly traded stocks cannot meet the listing requirements of the Nasdaq Stock Market or a national exchange, such as the New York Stock Exchange. Instead they trade in the "over-the-counter" market and are quoted on OTC systems, such as the OTC Bulletin Board or the Pink Sheets. Stocks that trade in the OTC market are generally among the most risky and most susceptible to manipulation. Independently Verify Claims It's easy for a company or its promoters to make grandiose claims about new product developments, lucrative contracts, or the company's financial health. But before you invest, make sure you've independently verified those claims. Research the Opportunity Always ask for — and carefully read — the prospectus or current financial statements. Check the SEC's EDGAR database to see whether the investment is registered. Some smaller companies don't have to register their securities offerings with the SEC, so always check with your state securities regulator, too. Watch Out for High-Pressure Pitches Beware of promoters who pressure you to buy before you have a chance to think about and fully investigate the so-called "opportunity." Don't fall for the line that you'll lose out on a "once-in-a-lifetime" chance to make big money if you don't act quickly. Always Be Skeptical Whenever someone you don't know offers you a hot stock tip, ask yourself: Why me? Why is this stranger giving me this tip? How might he or she benefit if I trade? For more information on how to use the Internet to invest wisely and avoid fraud, be sure to visit our Internet and Online Trading web page. There you'll find a vast array of tips, including Internet Fraud: How to Avoid Internet Investment Scams. sec.gov