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

To: jjs64 who wrote (9664)	9/6/2000 11:02:16 AM
From: Bear Down	Read Replies (1) \| Respond to of 10354

As predicted by TheTruthseeker Stockreporter.de ends up in the SEC archives. SEC Charges 33 Companies and Individuals With Fraud for Manipulating Microcap Stocks sec.gov 8. 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.