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To: Lawrence Burg who wrote (5136)	11/7/2002 10:14:37 AM
From: StockDung	Respond to of 6847

Donner Corp and Mark Bergman cases are pending. Christina agreed to a fine but pleaded poverty and ended up paying nothing. UNITED STATES SECURITIES AND EXCHANGE COMMISSION LITIGATION RELEASE NO.17379 / February 25, 2002 SECURITIES AND EXCHANGE COMMISSION v. CHRISTINA SKOUSEN, individually and doing business as CSK SECURITIES RESEARCH, No. C02-894 VRW (USDC N.D. CALIFORNIA). The Securities and Exchange Commission announced that it filed a settled injunctive action on February 22, 2002 against California resident Christina Skousen, individually and doing business as CSK Securities Research. The Commission's complaint alleged that between May 1999 and December 2000, Skousen, a self-styled "analyst," wrote fraudulent research reports touting eight microcap companies. Skousen's reports for seven of the companies contained false and misleading revenue, income and earnings. The revenue projections exceeded the companies' most recently reported revenue figures by as much as 260,913%, and exceeded the companies' most recently reported income figures by as much as 30,089%. Skousen's reports additionally failed to disclose that six of the companies required significant additional financing, which was not assured, to implement their business plans or continue in operation. Skousen's reports for the same seven companies also contained arbitrary projected stock prices, which exceeded the companies' current stock prices by as much as 18,650%. In addition, Skousen falsely represented that one company was "well-capitalized" when it had previously disclosed that it required additional working capital in order to continue as a going concern. Moreover, Skousen, who typically was paid in cash for all of the reports, failed to disclose her receipt of compensation in two instances where she personally published the reports. The Commission's complaint alleges that Skousen violated Section 17(b) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint seeks an injunction against Skousen and disgorgement of $30,000 and prejudgment interest and third-tier civil penalties. Without admitting or denying the Commission's allegations, Skousen has consented to the entry of an order that would enjoin her from future violations of the foregoing provisions and directing her to pay disgorgement and prejudgment interest. Under the proposed order, Skousen would not be required to pay disgorgement or civil penalties based on her demonstrated inability to pay. SEC Complaint in this matter. sec.gov -------------------------------------------------------------------------------- Home \| Previous Page Modified: 02/27/2002

To: Lawrence Burg who wrote (5136)	11/7/2002 10:40:03 AM
From: StockDung	Read Replies (1) \| Respond to of 6847

XYBERNAUT MAKES TOP 50 (DONNER BOGUS 50 STOCK INDEX) NASD v. Donner Corporation International, et al. Exhibit B Issuer Name Calendar Year 1999 Calendar Year 2000 Reports Alleged Against Uberti 1. Abaxis, Inc. May 4 X 2. Alyn Corporation July 7 X 3. American Champion Entertainment October 18 X 4. Avcorp Industries June 7 X 5. B2 Technologies March 6 X 6. Carbite Golf September 13 X 7. China Premium Food Corp. February 8 X 8. Comanche Energy, Inc. October 27 X 9. Cypros Pharmaceuticals Corp. April 2 and July 23 10. Datametrics Corporation August 23 X 11. Digital Power July 28 X 12. Dippy Foods February 8 and March 27 X 13. Discovery Laboratories, Inc. November 30 April 10 X 14. Diversified Senior Services December 16 15. Dynamic Web Enterprises March 22 X 16. Esynch Corporation September 27 X 17. General Automation (G/A Express, Inc.) June 7 and October 8 January 25 X 18. Genetronics June 16 19. Genius Products April 25 X 20. Geo2 Limited October 21 X 21. Hawaiian Natural Water Company, Inc. October 5 X 22. Ilive.com March 8 X 23. Imaging Technologies Corporation June 23 X 24. Incubator Capital February 7 X 25. Integrated Spatial Information Solutions, Inc. March 6 X 26. Interleukin Genetics March 8 27. InternetStudios.com, Inc. March 2 X 28. Itronics, Inc. March 20 X 29. Lancer Orthodontics April 19 X 30. Longport, Inc. February 2 X 31. Media Bay, Inc. March 9 X 32. Medical Science Systems, Inc. June 14 and July 12 33. Mustang Software, Inc. September 21 February 22 X 34. ObjectSoft Corp. September 13 X 35. Ocean Power Corporation February 23 X 36. Orlando Predators Entertainment, Inc. February 22 X 37. Pen Interconnect, Inc. September 21 X 38. PharmaPrint, Inc. July 23 X 39. Pioneer Behavioral Health, Inc. May 5 and June 21 40. PLC Systems, Inc. April 24 X 41. PriceNet USA, Inc. March 7 X 42. Retrospettiva, Inc. February 23 X 43. Starbase Corporation October 21 and December 16 X 44. SVI Holdings September 9 February 17 and September 26 X 45. Titan Pharmaceuticals, Inc. June 22 46. Tri-Lite, Inc. October 19 X 47. Trimedyne, Inc. July 27 February 28 and April 4 X 48. TrimFast Group, Inc. March 7 X 49. WaveRider Communications, Inc. February 8 X 50. Xybernaut Corporation October 12 January 24 X 51. Zapworld.com February 23 X

To: Lawrence Burg who wrote (5136)	11/7/2002 11:17:28 AM
From: StockDung	Respond to of 6847

MORE FRAUDULENT RESEARCH REPORTS Last week, the NASD struck another blow against fraudulent research reports that mislead investors and manipulate markets. On October 17, 2002, the NASD filed a complaint charging National Capital Securities, Inc. of Irvine, California (formerly known as Donner Corporation International), National Capital’s President, Jeffrey L. Baclet and research analyst Vincent Michael Uberti with issuing a series of false and misleading research reports between March 1999 and May 2002. The NASD says that the research reports, published online and in hardcopy, contained “fraudulent, exaggerated and unwarranted statements, and failed to contain critical information about numerous companies’ financial and business operations.” The reports also failed to disclose that National Capital received cash, stock, or both, in exchange for issuing positive reports and buy recommendations. The complaint alleges that 25 of the research reports misled investors by exaggerating the companies’ prospects and failing to provide essential financial information or to disclose that the companies lacked capital and operating experience. Specifically, the reports ignored the fact that independent auditors had issued “going concern” opinions expressing doubt about the ability of those companies to stay in business. The NASD also claims that 51 reports that National Capital was paid to issue contained “unwarranted and exaggerated statements.” National Capital violated NASD rules and federal securities laws by failing to disclose that it received compensation in exchange for those reports. In addition, Uberti and an individual named Paul Runyon were charged with issuing misleading research reports about two more companies through Lincoln Equity Research, a firm that is not an NASD member. This marks the third time in recent months that the NASD has filed charges against a member firm for issuing bogus reports. The first two complaints involved the firm of Hornblower & Weeks, which was banned from issuing research reports in May 2002, and later was sanctioned for violating that bar. See Hornblower & Weeks – In Trouble Again. (10/21/2002)