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Pastimes : Investment Chat Board Lawsuits -- Ignore unavailable to you. Want to Upgrade?

To: Arcane Lore who wrote (1286)	3/29/2001 10:04:57 PM
From: Arcane Lore	Read Replies (2) \| Respond to of 12465

On March 29, the Commission filed a complaint in the United States District Court for the District of Columbia alleging that Sean E. St. Heart, age 25, engaged in an illegal cyber smear by posting a false message about NCO Group, Inc. on the Yahoo! Finance Internet message board. The message posted by Sean St. Heart is still available at the Yahoo! site. This appears to have been the only post by this alias on the NCOG thread during the time period of interest. Note: According to the SEC, the following Dec., 1999 Yahoo! post "was false in that St. Heart (1) had not prepared such a lawsuit, (2) had not joined with any other company in connection with such a lawsuit, and (3) had no basis to claim that he had been damaged in the amount of $20 million." See sec.gov or the preceding post. Bad business relations... by: seanstheart (23/M/Studio City, California) 12/03/99 11:33 pm EST Msg: 197 of 1187 I am the president and CEO of St. Heart Productions, LLC. Today, my company has prepared to file a 20 million dollar law suit against NCOG for their business practices. Anyone doing business with this company has something to fear. The company uses intimidation and poor judgement. Blue Angel Productions, LLC, Stamford Entertainment Ageny and ten other companies have joined us in our law suit, which we should have ready by next week. This company has a lot to learn about people and business ethics. messages.yahoo.com See also: messages.yahoo.com messages.yahoo.com

To: Arcane Lore who wrote (1286)	4/1/2001 5:09:04 PM
From: Arcane Lore	Respond to of 12465

In the interest of accuracy, it should be noted that the SEC issued a correction to the summary of the enforcement action concerning Sean St. Heart. There appear to be two changes: 1. The NCOG closing price prior to Sean St. Heart's post should have read $46 9/16 rather than $49 9/16. 2. The litigation release number was changed to LR-16947A. Here is the corrected text: An error appeared in yesterday's Digest in a summary entitled "SEC SUES SEAN ST. HEART FOR INTERNET FRAUD". The summary should have read as follows: SEC SUES SEAN ST. HEART FOR INTERNET FRAUD On March 29, the Commission filed a complaint in the United States District Court for the District of Columbia alleging that Sean E. St. Heart, age 25, engaged in an illegal cyber smear by posting a false message about NCO Group, Inc. on the Yahoo! Finance Internet message board. St. Heart's message had a dramatic impact on NCO's stock price, causing its market capitalization to drop by over $200 million. The Commission's complaint specifically alleges that on Friday night, December 3, 1999, St. Heart posted a false message on Yahoo! in which he claimed that he, as the President and CEO of St. Heart Productions, together with twelve other companies, had prepared a $20 million lawsuit against NCO for its "business practices." The message was false in that St. Heart (1) had not prepared such a lawsuit, (2) had not joined with any other company in connection with such a lawsuit, and (3) had no basis to claim that he had been damaged in the amount of $20 million. The complaint alleges that on the same day, St. Heart received a telephone call about an unpaid debt from someone engaged by NCO, a public company engaged in accounts receivable management services. Several hours after he received that call, St. Heart posted his fraudulent message with the knowledge, or reckless disregard of the fact, that the message would materially impact NCO's stock price. The complaint alleges that St. Heart's message had a dramatic impact on NCO's stock price. Over the next two trading days, NCO's stock price dropped $12 3/16, or 28 percent, to $34 5/16 from its closing price of $46 9/16 on Friday, December 3, 1999, representing a loss of over $200 million of NCO's market capitalization. NCO's trading volume also surged to 2.9 million shares on December 7, 1999 - representing a ninefold increase relative to the average three-month daily volume. Simultaneously with the filing of the Commission's complaint, St. Heart, without admitting or denying the Commission's allegations, consented to the entry of a judgment permanently enjoining him from violating the antifraud provisions of the federal securities laws - Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. St. Heart further consented to the entry of a judgment that waives the imposition of a monetary penalty based on his demonstrated inability to pay. [SEC v. Sean Edward St. Heart, Civ. Action No. 01-CV-00695, TPJ, D.D.C.] (LR-16947A) sec.gov