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To: Pink Minion who wrote (61936)	11/4/2000 10:28:21 AM
From: StockDung	Respond to of 122087

Utah Man Tried to Cash Fake $100 Mln Bond, US Says Newark, New Jersey, Nov. 3 (Bloomberg) -- A Utah auto mechanic was indicted today on charges of attempting to defraud a Donaldson, Lufkin & Jenrette Inc. unit by trying to redeem a phony 1934 Federal Reserve bearer note valued at $100 million. A federal grand jury charged Kevin S. Jackson, 49, of Hyde Park, Utah, with trying to redeem the bond while relying on a phony letter from a fictional Utah State University professor. Jackson told brokers at the Pershing Division of DLJ Securities Commission and at Advantage Capital Corp. that Professor Ronald A. Gilmore had said the bond's paper and ink were authentic. ``In fact, there was no such professor at Utah State University,'' the indictment said. Jackson was charged with conspiracy, mail fraud, and transporting a counterfeit $100 million security. Prosecutors said Jackson set up a family trust, known as the KKSSJ III Trust, which he and others used to further a scheme that they devised in May. On May 19, prosecutors said, Jackson and a co-conspirator deposited 25 counterfeit $100 million bearer bonds in a Utah bank for safekeeping. But four days later, the indictment said, U.S. Secret Service agents seized those bonds and told Jackson that all of them were phony. However, on May 26, Jackson deposited one phony $100 million bond in another bank, the indictment said. Jackson then opened an account at Advantage Capital, a brokerage firm based in White Plains, New York, and told the firm that he held the bond through the trust, prosecutors said. Jackson also lied when he told Advantage Capital and Pershing, a clearinghouse for Advantage Capital, that the trust ``was set up to do charitable works both in underdeveloped nations and among Native American tribes.'' He told the firms that the proceeds would be used to support those causes, prosecutors said. Using a New York attorney, Jackson also set up a bank account in Bermuda in the name of the trust to receive proceeds from redemption of the bond, the indictment said. With those plans in place, Jackson sent a phony letter from ``Professor Gilmore'' to try to redeem the bond through Advantage Capital, prosecutors said. He also directed the firm to wire proceeds from the bond to Bermuda and place $7 million in a New York bank account, the indictment said. Jackson also asked Pershing for a $10 million advance by trying to use the bond as collateral, authorities said. He sent a separate request asking for a $20 million advance from Pershing, the indictment said. Jackson was arrested in Utah on June 23, and has been free since then on $10,000 bail. If convicted, he faces up to five years in prison. Nov/03/2000 18:19 ET For more stories from Bloomberg News, click here. (C) Copyright 2000 Bloomberg L.P.

To: Pink Minion who wrote (61936)	11/4/2000 10:32:40 AM
From: StockDung	Respond to of 122087

Australian faces sentence on U.S. stock web fraud SYDNEY, Nov 3 (Reuters) - An Australian is awaiting sentence after pleading guilty to misleading use of the Internet to sell the U.S. shares of Rentech Inc, a developer of gas to liquid fuels conversion technology. Wayne Loughnan of Yeppoon in the state of Queensland was committed to the County Court of Victoria for sentencing. His associate Steven Hourmouzis pleaded guilty in October to charges of sending millions of junk e-mails and posting false information on Internet sites in May 1999 in the United States predicting a massive jump in Rentech's share price. A Victoria County Court judge sentenced Hourmouzis to two years jail concurrently on each of three charges on Monday, but ordered him to serve only three months, with the release tied to him staying out of trouble for two years. Australian and U.S. regulators alleged that Hourmouzis and Loughnan sent out more than four million e-mails and messages to Internet sites in May 1999 with misleading statements that Rentech's stock would rocket 900 percent to $3 once the company released pending patents. The U.S. Securities and Exchange Commission said in May the messages triggered a doubling in Rentech's share price and a 1,600 percent rise in trading volume on May 19, 1999, leading Nasdaq to halt trading on the stock. Rentech <RTK.A> shares, now listed on the American Stock Exchange, last traded up 0 1/402 at $1 1/411. The state of Victoria's court adjourned the matter for a case conference to be held on March 7, 2001. 00:12 11-03-00