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Gold/Mining/Energy : Gold and Silver Mining Stocks -- Ignore unavailable to you. Want to Upgrade?

To: lbs1989 who wrote (2822)	10/23/2001 9:26:28 AM
From: IngotWeTrust	Read Replies (3) \| Respond to of 4051

Thot U might find this of interest, lbs...re: a recent enforcement action involving a penny stock and regulators FAIR USE DOCTRINE, etc. Monday October 22, 3:09 pm Eastern Time NASD charges three traders with stock fraud NEW YORK, Oct 22 (Reuters) - The regulatory arm of the National Association of Securities Dealers Inc. on Monday charged three traders in a stock price manipulation scheme that it said put one securities firm out of business. NASD Regulation Inc. charged traders Jerome Rosen, Timothy Chamberlain and Robert Prager with joining a scheme with a U.S. fugitive and an individual barred from the securities industry. The group manipulated three million shares of H&R Enterprises stock obtained by Michael Mitton, a Canadian resident and U.S. fugitive, the NASD charged in a statement. Mitton got the stock at prices ranging between a penny and 50 cents a share. Mitton and his associates traded the shares among the three brokers at increasingly higher prices, pushing the stock from about $2 to $6.75 a share, the NASD said. They then sold out their positions, leaving unsuspecting brokerages holding shares worth only a fraction of what they paid for them, the agency alleged. Mitton and his associate David Heredia paid Rosen, Prager and Chamberlain 3 cents to 6 cents a share for participating in their scheme, the NASD charged. The NASD barred Heredia from the securities industry in 1998 after he worked at Stratton Oakmont, a defunct brokerage that has been charged with stock manipulation by regulators in the past. Saperston Financial, where Prager used to work, wound up buying 1.7 million H&R shares at about $6, only to watch the price fall below $2 in two days, the NASD said. Saperston, unable to cover the loss, was forced to close and its clearing firm had to cover the trades at a cost of $9 million, according to the agency. A second firm, J. Alexander Securities, owned about 600,000 shares that it bought at about $5.50 a share. One of the three traders, Rosen, worked at J. Alexander and the NASD earlier this year charged the company with failing to supervise two principals in its Florida branch office. Chamberlain used to work at Equitrade Securities Corp., which along with H&R was not charged with any wrongdoing. biz.yahoo.com lbs... You might wish to notice no specific securities law of 1933 sectional violation is mentioned, let alone designating Marcos' sacred Section 17(a) and 17(b) as if they are the only important ones needed to be of concern to this thread. gold_tutor