LOL, here's a hot tip Date: Wed, 26 Sep 2001 11:52:23 -0500
From: David Drake
Subject: A patriotic stock play and a call to action
To: xxxxxxx
Organization: Merger Communications, Inc
[sorry Drake, fool me once shame on you...]
Good morning,
I am passing this newsletter on to you this morning because I thought you might be interested in small and micro-cap companies with real potential again now that the market seems to be moving back up. As you know, we suffered one of the worst weeks in trading history last week, but many analysts have said publicly that they believe the market is at or near its bottom at this point. They are encouraging Americans to get back in the market NOW. We believe that this is good advice. And it's working -- the market has produced several strong days in a row, but we're just starting to gain momentum.
Even if you do not like the company profiled in the accompanying newsletter, you should do your part for America and the economy. Everyone needs to get back to work, start spending like normal again and get back into the market. If we don't, we're in for a long, rough time and even worse, we've let the terrorist beat us. So as Americans, we all need to do our part.
The attached newsletter covers Ness Energy International (OTCBB: NESS), an American company that is doing its part to help ease our dependence on oil from OPEC countries. They are set to start drilling in Israel very soon and expect to be able to recover significant amounts of oil and gas from the large untapped reserves on their leases. If they are successful, this should be a major development for the company and could be just what the company's shareholders have been waiting for.
We encourage you to read the newsletter, check out NESS's news (http://biz.yahoo.com/n/n/ness.ob.html) and do your own due diligence. But whatever you decide about this particular company, please do your part to help strengthen America and keep our economy moving in the right direction.
Thank you.
This e-mail contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words ``believes,'' ``expects,'' ``anticipates'' or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Ness Energy International (the Company) to differ materially from those expressed or implied by such forward-looking statements. Such factors include, among others, the risk factors contained in the company's filings with the Securities and Exchange Commission. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. Merger Communications is a consulting firm employed by the publisher of the attached newsletter. All parties involved believe that all information in this newsletter has been obtained from sources considered reliable, but cannot guarantee that the statements presented herein are accurate or complete. Merger's compensation for redistributing this e-mail is $1,000, paid by the publisher. Merger holds no NESS stock.
ragingbull.lycos.com
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16656 \ August 17, 2000
SECURITIES AND EXCHANGE COMMISSION V. MERGER COMMUNICATIONS, INC., JUKKA U. TOLONEN, AND DAVID A. DRAKE, Defendants. Civil Action No. H-00-2791, (USDC/SDTX/Houston)
SEC FILES LAWSUIT AGAINST HOUSTON
INTERNET STOCK PROMOTION FIRM
The Securities and Exchange Commission (SEC) announced that on August 15, 2000, it filed a civil complaint against Merger Communications, Inc. ("Merger") and its two owners, Jukka U. Tolonen and David A. Drake of Houston, Texas. The complaint alleges that Merger distributed press releases and other communications via the Internet touting numerous Over The Counter ("OTC") and NASDAQ quoted stocks without properly disclosing that the companies compensated Merger.
Merger Communications, Inc. is a Houston, Texas, based "financial promotion" company.
Jukka U. Tolonen, age 35, is a citizen of Finland, residing in Houston, Texas, and owner and president of Merger. Tolonen moved to Houston in 1995 to start Merger.
David A. Drake, age 37, is a resident of Houston, Texas, and executive vice president of Merger.
The SEC alleges that in press releases and mass facsimile and e-mail distributions, Merger distributed highly favorable information concerning the issuers that was intended to create immediate increases in the trading volume and share-price of the issuers' stock. On its website and in communications with prospective clients, Merger boasted that its services often resulted in immediate increases in volume and share-price appreciation for its clients' securities. As compensation for its promotional efforts, Merger and its principals received shares of the touted issuer's stock. The amount of shares received was dependent upon the share price increase during Merger's promotional efforts.
With respect to many of its touts, Merger did not disclose that its promotional and touting activity was bought and paid for by the company whose stock was being touted and that its investment advice, therefore, was not disinterested. For other touts, Merger disclosed generally that it "may" be compensated in stock or that it was hired by the issuer, but it did not fully disclose the nature and amount of compensation.
The SEC also alleges that Merger's promotional efforts had the intended effect of increasing the issuer's stock price. For example, after Merger's promotion of one OTC stock, PinkMonkey.com, the company's shares increased 400% in the first two days after the dissemination of Merger's promotional release. In another instance, shares of another Merger client, Clearworks Technologies, Inc., increased 66% in the three days following Merger's tout of the company's stock. Typically, however, the impact of Merger's efforts was short lived, and the price of its clients' stock returned to the pre-tout price within a few days.
Merger, Tolonen and Drake, without admitting or denying any of the allegations of the SEC's complaint, simultaneously agreed to settle the charges that they violated the anti-touting provisions of the federal securities laws. Under terms of the settlement, each of the defendants will be permanently enjoined from future violations of Section 17(b) of the Securities Act of 1933. In addition, the proposed judgment orders Merger to pay a civil penalty of $50,000 and Tolonen and Drake to pay a civil penalty of $10,000 each.
Investors are advised to read the SEC's "Cyberspace" Alert before purchasing any investment promoted on the Internet. The free publication, which alerts investors to the telltale signs of online investment fraud, is available on the Investor Assistance and Complaints link of the SEC's Home Page on the World Wide Web www.sec.gov. It can also be obtained by calling 800-SEC-0330.
Investors are encouraged to report suspicious Internet offerings (or other suspicious offerings) via e-mail to enforcement@sec.gov. A user friendly form to assist you in making a report is available at the SEC Home Page www.sec.gov. Investors can also mail a report to SEC's Enforcement Complaint Center, Mail Stop 8-4, 450 Fifth Street, N.W., Washington, D.C. 20549.
sec.gov |
