To: Sergio H who wrote (24361 ) 3/27/2001 7:23:36 PM From: Ditchdigger Read Replies (2) | Respond to of 29382 No GDP predictions, way beyond me<g> Well the last X CEO of TSIG/TIGI (my favorite BB) Made the news <ROFLLLLL!!> I've foolwed this stck for 3 years, and it's been worth every bit<lol> TIGI, GeneralSearch.com chief indicted in $17M stock fraud ENERGY, FINANCIAL SERVICES, INTERNET By Bill Holland, LocalBusiness.com Mar 27, 2001 07:49 AM ET ST. PETERSBURG, Fla., March 27 (LocalBusiness.com) -- The founder of Chicago's GeneralSearch.com, the "family friendly" search engine acquired this fall by TeleServices Internet Group, is charged with conspiring with a Minnesota man to defraud investors of $17 million in an stock fraud involving the penny stock of a Los Angeles company, Keystone Energy Services. Printer-friendly format E-Mail this to a friend Receive updates by e-mail for related content Stock Quote TELESVC INTERNET TIGI 0.03 0.0 -5.96% Results delayed 20+ minutes. Want to reuse this article? Click here for options! © Copyright LocalBusiness.com The indictments handed down by a Minnesota federal grand jury last Thursday charge TeleServices Internet Group vice-chairman Jeff Bruss, 34, with international money laundering, conspiracy, and securities fraud in connection with promoting Keystone stock. There was no immediate word on what Bruss' future with TeleServices Internet might be. Company spokesman Paul Henry said a loss of Bruss might have minimal impact, "We're in the middle of restructuring the board anyway," Henry said. Bruss did not return a call for comment. Federal investigation leads to charges Prosecutors say Bruss promoted Keystone's stock through a Website he operated, The Future Superstock, and was paid at least 800,000 shares of the issue in return. Following its 1997 appearance on his Website, the price of Keystone went from $5 to $12 per share and prosecutors say Bruss netted $6.9 million, which he stashed in Canadian brokerage accounts. Keystone's last quoted trading price was 17 cents. The federal charges stem from a probe by the IRS, the FBI and the Customs Service into 1998 insider trading in Keystone shares (OTC Pinksheets: KESE). The government alleges that Elk River, Minn., businessman William Nordvik merged his New Environmental Technology firm into Los Angeles-based Keystone, then distributed all the shares to two company insiders -- claiming in SEC filings those shares were held by 12 investors. Nordvik is alleged to have earned more than $467,000 in illegal Keystone stock sales proceeds, money prosecutors say he laundered through his parents' bank account. Nordvik pleaded not guilty to charges in a previous indictment on the matter and is awaiting trial, according to a spokeswoman for the U.S. Attorney Karen Bailey. Five other defendants from an earlier indictment in the same case have pleaded guilty to insider trading charges earlier this year. All are awaiting sentencing, according to the U.S. Attorney in Minneapolis. The new indictments add Bruss to the list of defendants and more charges to Nordvik's case. Bruss moves to TSIG via GeneralSearch merger Bruss, the titular head of TeleServices Internet after chairman Scott Roix resigned in the wake of Roix's Affinity Group's decision to back out of a merger with TeleServices Internet earlier this year, has had run-ins with regulators before. In 1998 the SEC permanently enjoined him from promoting stocks through the now-defunct Future Superstock site without telling readers he owned shares he was pumping. As chief executive of Chicago search engine GeneralSearch.com, Bruss closed a $6.5 million private placement early last summer, then merged GeneralSearch.com into TeleServices Internet in exchange for a significant stake in the company, as well as a seat on the board. TeleServices Internet was left at the altar twice by acquisition candidates like Tampa's Reliant Marketing and St. Petersburg's Affinity Group. Both companies backed out of mergers after getting a closer look at TeleServices Internet; Affinity cited material information that was not disclosed during due diligence. Shares in TeleServices Internet (OTC BB: TIGI) open today's market at 32 cents, up a penny from a 52-week low of 31 cents set Friday. Prices had been as high as 62 cents the week before Christmas when the Affinity merger was still on track. Bill Holland covers Tampa Bay for LocalBusiness.com. E-mail him with story ideas or comments. Related Company News 03/27/01 TIGI, GeneralSearch.com chief indicted in $17M stock fraud