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Microcap & Penny Stocks : Amazon Natural (AZNT) -- Ignore unavailable to you. Want to Upgrade?

To: Janice Shell who wrote (25198)	9/21/2000 5:36:32 AM
From: EL KABONG!!!	Read Replies (1) \| Respond to of 26163

interactive.wsj.com September 21, 2000 Online Stock Message-Board Poster Is Sued for Defamation Over Statements By JOHN R. EMSHWILLER Staff Reporter of THE WALL STREET JOURNAL In the latest twist to the escalating legal battles involving Internet stock-message boards, a well-known online-message poster is being sued for defamation by a man who was barred from the brokerage business by the Securities and Exchange Commission. Richard Marchese filed suit in Chicago federal court against Gary Dobry, a boxing-gym operator in Palatine, Ill., who is known on the Internet under the moniker "Pugs." The complaint alleged that Mr. Dobry used hundreds of Internet messages to "falsely and maliciously accuse" Mr. Marchese of "securities fraud, assault, and affiliation with organized crime." Mr. Marchese is seeking more than $75,000 in damages and an injunction against Mr. Dobry. The injunction would bar Mr. Dobry from "posting false and defamatory statements on the Internet" about Mr. Marchese. In an interview Wednesday, Mr. Dobry said the suit has "no merit" and is part of a "harassment" campaign against him. He acknowledged writing often, and critically, online about Mr. Marchese. He asserted that Mr. Marchese has been involved in stock manipulations and on one occasion called and threatened him. Mr. Marchese, in his suit, denied being engaged in stock manipulation and said he "has never physically threatened Mr. Dobry." David Argentar, an attorney for Mr. Marchese, said he couldn't comment beyond the suit. The Marchese litigation is the latest of several dozen such suits against Internet stock-message-board posters -- a measure of the increasing impact that the message boards have had on stock trading. The suits are typically brought by companies or their executives who have been attacked by online critics. However, Mr. Marchese doesn't quite fit those plaintiffs' mold. He rose to prominence in the 1980s as the twenty-something co-founder of now-defunct Power Securities Corp., which was a major penny-stock brokerage firm. In 1993, Mr. Marchese was indicted for mail fraud in Denver federal court in connection with his activities at Power Securities. He was acquitted at trial. Early last year, he settled a civil complaint brought by the SEC that charged him with "repeated fraudulent conduct" at Power. Without admitting or denying the allegations, Mr. Marchese agreed to a bar from association with any broker or deal or any participation in a penny-stock offering. Messrs. Marchese and Dobry crossed paths in connection with a small Las Vegas-based company called Amazon Natural Treasures Inc. Mr. Dobry was a vocal Amazon fan and frequently did online battle with company critics, particularly another well-known online poster named Janice Shell. Mr. Dobry has argued online and off that Ms. Shell and Mr. Marchese are part of an organized group working to manipulate the prices of small-company stocks. "There is nothing noble or righteous about what these people do," said Mr. Dobry. Mr. Marchese's suit quotes several online message from Mr. Dobry, including one which told Ms. Shell that "your ties to organized crime are in stone, evidenced by ... your working relationships with ... Rick Marchese." In an interview, Ms. Shell, who is an art historian in Milan, vehemently denied being part of any manipulation or organized-crime group. She acknowledged having communicated with Mr. Marchese, though she said the two have never met. She said she came into contact with Mr. Marchese while investigating Amazon Natural. Ms. Shell said that Mr. Dobry, whom she described as "vile," had frequently posted false allegations about her online. Mr. Dobry isn't a stranger to online litigation. He was sued in New Hampshire federal court by a business executive for posting allegedly false online messages about the man. Mr. Dobry settled the suit by issuing an apology and agreeing not to post any further messages about the executive. He said he took that step to avoid the cost of litigation. Write to John R. Emshwiller at john.emshwiller@wsj.com