To: Jeffrey S. Mitchell who wrote (1938 ) 9/7/2001 5:00:56 AM From: EL KABONG!!! Read Replies (2) | Respond to of 12465 Hi Jeff, Remember M&A West and Scott Kelly? Major touts on SI about 2 years ago or so... Busted!!!interactive.wsj.com September 6, 2001 Prosecutors, SEC Say 'Internet Incubator' Was Just an Old-Fashioned Stock Fraud Dow Jones Newswires WASHINGTON -- A self-proclaimed Internet incubator was nothing more than an old-fashioned stock fraud with a dot-com twist, authorities charged in criminal and civil lawsuits filed in San Francisco. Federal prosecutors unsealed an 82-count indictment charging attorney Frank Thomas Eck III and his wife, Zahra Gilak, with stock manipulation and money laundering in a scheme that allegedly cost investors at least $100 million. Ms. Gilak was arrested at her Pengrove, Calif., home, according to the U.S. attorney's office in San Francisco, and Mr. Eck surrendered to authorities, his attorney said. Authorities say Mr. Eck, Ms. Gilak and others ran a so-called pump-and-dump scheme that artificially inflated prices for VirtualLender.com, Workfire.com, Digital Bridge, Inc., and parent company, M & A West, Inc., which purported to be an Internet "incubator" that identified and nurtured online start-ups. Allegedly illegal profits from the stock manipulation were funneled into M & A West, according to a companion civil lawsuit filed against the company by the Securities and Exchange Commission. "It's safe to say we're going to enter a not-guilty plea. The government has its facts wrong," said Mr. Eck's attorney, William Goodman. The SEC also sued Mr. Eck, who acted as the firm's outside counsel; Ms. Gilak, formerly its corporate secretary; former Chief Executive Scott Kelly; former Chief Financial Officer Salvatore Censoprano, of Foster City, Calif.; and Stanley Medley, a Los Angeles businessman. Attorneys for Ms. Gilak, Mr. Kelly, Mr. Medley, Mr. Censoprano and M & A West weren't available to comment. Regulators allege the scheme netted more than $20 million of illegal profits for the four, and caused at least $100 million of investor losses. KJC