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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Ga Bard who wrote (80223)	9/16/2002 4:08:58 PM
From: StockDung	Read Replies (1) \| Respond to of 122087

Hey Vern, here is a good story about that SURGE that you where toutin. Notice they also mention Stephen King Ontario Securities Commission - Street Wire OSC target Valentine's brokerage liked Surgical Safety too Ontario Securities Commission OSC Monday June 24 2002 Street Wire Also Investment Dealers Association of Canada (IDA) Street Wire Suspended Thomson Kernaghan chairman Mark Valentine's incredible knack for sniffing out troubled penny stocks included picking Surgical Safety Products Inc., a company followed closely by the United States Securities and Exchange Commission. Regulatory filings show Thomson Kernaghan executed a convertible debenture financing for millions of Surgical Safety shares in late 1999, a year after one of the company's touts was prosecuted by the SEC. While there is no allegation of wrongdoing by Mr. Valentine or Thomson Kernaghan in Surgical Safety, few Bay Street brokerages would touch such a stock. The Ontario Securities Commission, which imposed a sudden 15-day suspension on Mr. Valentine on June 17 amid an investigation, has not yet revealed which stock promotions it is probing. Thomson Kernaghan became a heavy backer of Surgical Safety in December, 1999, agreeing to loan the struggling company up to $5-million in instalments up to Nov. 30, 2002. (All figures are in U.S. dollars.) Surgical Safety also signed a security agreement with Thomson Kernaghan for an earlier financing on Dec. 9, 1998. While the 1999 deal called for each instalment to be supported by a secured convertible note and Thomson Kernaghan initially held 2.7 million shares in escrow for potential conversions, the total figure was eye popping. The deal called for Surgical Safety to file a Form S-3 registering a whopping initial 20.04 million shares for Thomson Kernaghan. Surgical Safety, like a number of Thomson Kernaghan's other penny stock picks, had a familiar odour. On Oct. 27, 1998, the SEC filed a civil complaint in United States District Court in Tampa, Fla., targeting Stockstowatch.com Inc. and its president, Steven A. King, who operated the Internet touting service from his home in Sarasota, Fla. The SEC claims that between October, 1997, and July, 1998, Mr. King and his company made total profits of more than $1-million illegally touting and scalping at least five penny stock promotions. Surgical Safety, one of two stocks highlighted by the SEC, was Mr. King's most lucrative promotion. By July 6, 1998, he and his company had sold 123,000 shares for a total profit of $574,000. On April 21, 1998, with the stock at 96 cents, Mr. King sent subscribers a rosy profile, stating "SURG will be a $20 stock within 18 months." Two days after the recommendation, the stock surged to a year high of $3.13 and Mr. King began dumping his shares. No allegations were made against Surgical Safety or its executives, and it is not yet known what attracted Thomson Kernaghan's chairman to the dubious penny stock promotion. (c) Copyright 2002 Canjex Publishing Ltd. stockwatch.com