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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: pilapir who wrote (9731)	4/25/2002 4:34:28 PM
From: StockDung	Read Replies (1) \| Respond to of 19428

SEC to Begin `Formal Inquiry' Into Analyst Conflicts (Update1) By Philip Boroff New York, April 25 (Bloomberg) -- The Securities and Exchange Commission will begin a formal investigation into conflicts of interest among Wall Street research analysts, SEC Chairman Harvey Pitt said. Prompted in part by e-mails New York Attorney General Eliot Spitzer released earlier this month of Merrill Lynch & Co. analysts disparaging stocks the firm recommended, the SEC will make sure ``if anybody's violated existing laws, those people are taken to task for that,'' Pitt said in an interview with Charlie Rose to be broadcast later today. Nine states have joined New York in investigating whether analysts committed fraud by issuing favorable research to attract or retain companies as investment banking clients. ``We have asked the various state regulators to join with us,'' Pitt told Rose. Pitt speaks at 4 p.m. New York time at a Bond Market Association meeting in Manhattan. The Merrill e-mails forced Pitt to take action, said Edward Haber, a Boston lawyer who sued Merrill and former Internet analyst Henry Blodget. ``When you see these kind of cynical, dishonest e-mails, the SEC and the chairman were forced into a position of being more proactive,'' he said. Stocks of securities firms extended their declines. Merrill fell $2.60, or 2.5 percent, to $42.05, Lehman Brothers Holdings Inc. fell $3.06, or 5.1 percent, to $57.09. Morgan Stanley Dean Witter & Co. fell $3.19, or 6.3 percent, to $47.80. Goldman Sachs Inc. declined $3.09, or 3.9 percent, to $76.40. Falling Stock Merrill shares have dropped 22 percent since Spitzer announced the inquiry on April 8, compared to a 3.2 percent decline for the Standard & Poor's 500 Index. Prior to his appointment to the SEC in August, Pitt was a partner with the law firm Fried, Frank, Harris & Jacobson. He represented the Big Five accounting firms as well as Charles Schwab Corp., Merrill, and Goldman. In the Rose interview, the SEC chairman said he will look at new rules to ensure investors ``understand what's going on'' in regard to analysts and conflicts of interest. He has supported a National Association of Securities Dealers proposal that would forbid analysts from reporting to investment bankers and from being paid out of revenue from banking transactions. In a formal investigation, the SEC has authority to subpoena bank and telephone records and compel testimony. SEC commissioners have to approve the initiation of a formal probe. Most SEC investigations are begun by the staff, and are informal in nature.

To: pilapir who wrote (9731)	4/26/2002 8:28:27 AM
From: StockDung	Respond to of 19428

Earthlink Co-Founder Surrenders .c The Associated Press LOS ANGELES (AP) - Financial adviser Reed Slatkin surrendered Thursday to face charges that he ran a fraud scheme that bilked investors out of at least $254 million. Slatkin, 53, who also co-founded Internet company EarthLink Inc., appeared in federal court and was ordered detained pending a scheduled Monday arraignment on 15 felony counts of mail fraud, wire fraud, money laundering and conspiracy to obstruct justice. He was expected to plead guilty and could be sentenced to 12 to 15 years in prison, federal prosecutors said. The charges carry a maximum penalty of 105 years in federal prison and fines of up to $3.75 million. Slatkin was an investment manager for celebrities, business executives and socialites. Federal investigators contend that he bilked about 800 investors out of $593 million over 15 years. Slatkin has admitted that he is responsible for at least $254 million in losses. ``Mr. Slatkin's agreement with the government is a reflection of his decision to accept full responsibility for his conduct and move forward by continuing his collaborations with both government authorities and his creditors,'' Slatkin's attorney, Frederick D. Friedman, said in March. Slatkin resigned from EarthLink's board last year and filed for bankruptcy protection. 04/25/02 21:16 EDT