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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: StockDung who wrote (66724)	2/10/2001 8:04:06 PM
From: afrayem onigwecher	Respond to of 122089

SEC files charges against Ex-Datek broker, 4 others By John Poirier WASHINGTON, Jan 31 (Reuters) - Federal regulators Wednesday filed civil charges against a former Datek broker and four others who allegedly in 1995 sold unregistered securities of biopharmaceutical firm ImmunoGen Inc. (NasdaqNM:IMGN - news). New Jersey-based Datek, which operates the Island electronic trading network [ECN], and ImmunoGen, based in Cambridge, Mass., were not accused of any wrongdoing, the Securities and Exchange Commission said in a civil lawsuit filed in federal court in Manhattan. Charges of securities fraud and manipulation were filed against former Datek Securities broker Yezhak Dov Knoll, 45, Ari Parnes, 39, and his company Brooklyn-based ADAR Equities LLC. Two other ADAR workers, Shauel Seitler, 28 and Jacob Herman, 39, were also named in the complaint. The SEC alleges they carried out in a multimillion dollar fraud scheme to sell unregistered convertible debentures -- a form of debt securities -- and common stock in ImmunoGen. Attorneys for the defendants either could not be reached or declined to comment. Parnes, of Brooklyn, N.Y., is accused of masterminding the 1995 scheme, which allegedly sold $3.6 million of convertible debentures to five Panamanian companies with a post office box in Switzerland. According to what is called a ``safe harbor'' provision in the U.S. securities laws, securities to be offered and sold outside U.S. borders do not have to be registered with the SEC. But the debentures were held by an attorney of Parnes in New York and never left the country, the SEC argued. ``We're alleging this is really not an offshore transaction,'' Larry West of the SEC's enforcement division said. ``It was a fraudulent scheme to sell securities without registration or an exemption from registration in the United States.'' The agency also contends the four defendants who worked at ADAR allegedly sold 1.7 million ImmunoGen shares and using various techniques manipulated the company's stock price lower. The ADAR defendants converted the debentures into common stock at a 25 percent discount to the market price and then used the stock to cover their short positions. Additional charges were filed against the ADAR defendants, who were accused of receiving more than $1 million after acting as unregistered brokers in 14 other private placements of securities of 11 other companies, the SEC added. biz.yahoo.com