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

To: afrayem onigwecher who wrote (11482)	4/7/2003 12:06:58 AM
From: scion	Read Replies (1) \| Respond to of 19428

Selling short-selling short Paul Kedrosky Financial Post Tuesday, March 25, 2003 'Our shareholders can't obtain stock certificates." That plaintive headline from Nutek Inc. briefly flashed across newswires yesterday. Were Nutek shareholders barred from brokerage offices? Or had they fallen and not been able to get up? And why does Nutek care that its shareholders can't get their stock certificates? More importantly, who worries about stock certificates these days anyway? In answering those questions we enter the Spy-vs.-Spy struggle between short-sellers and penny stocks, a place where things rarely happen for the reasons given. Nutek says in its press release that 24 of its shareholders, representing 4,524,943 shares, are not being given stock certificates by their brokerage firms. According to Nutek, the offending companies are a who's who of the major brokers, including E*Trade, Ameritrade, TD Securities, and Charles Schwab. So with these brokerage firms being understandably intransigent about delivering millions of paper certificates, Nutek announced this morning that it had entered into a federal lawsuit in the United States to force delivery. Why does Nutek want so badly for its shareholders to have shares in paper form? The company says on its Web site that it is trying "to ensure the integrity of the market for shares of Nutek's common stock and to protect the investments of bona fide shareholders." The preceding is truly a laudable instinct, but it is also a mischievous interpretation of the facts. Companies like Nutek are convinced that short-sellers -- people who borrow stock and sell it, hoping to buy it back later -- are driving down the value of their shares. Short-sellers, for their part, see their actions as a necessary response to overpriced companies, large or small. Neither think very much of the other side, and they are both prepared to use whatever tactics they can to prevent their counterpart from gaining any sort of advantage. So, late last year, Nutek, as well as a better-known and more picked-upon company named GeneMax, announced that they were withdrawing from the Depository Trust Company (DTC). The firm is a global electronic securities settlement clearing house, a mechanism for allowing brokerage firms to manage stock trades without having to deal with an avalanche of stock certificates and collateral paper. Their idea in withdrawing from DTC? By forcing owners of their shares to hold them in paper certificate form they could make life much more difficult for short-sellers. Why? Because, and this is a much-debated point, short-sellers in the United States need to make an "affirmative determination" before selling the shares. In other words, they need to have borrowed the stock before they can sell it. By tying ownership to paper certificates, Nutek and GeneMax hope to make short-selling much more difficult -- and thereby frustrate their opponents. In Canada the situation is somewhat different, with no affirmative determination required. In other words, short-sellers in Canada, or using Canadian brokerage firms, can sell stocks short without borrowing the stock first. Called "naked shorting," it is even more loathed by its targets, because it means there is always a ready supply of stock to be sold. Naked short-selling is so despised that there is a new and somewhat suspicious-sounding National Association Against Naked Short Selling (NAANSS) in the United States. It provides a helpful checklist for executives worried that they are "victims" of naked short-selling: If your company experiences repeated sales of stock that drive the share price down, or it has unreasonable trading volumes, or there generally seems to be more shares around than you wanted, you too may be at risk! The truth, of course, is that the biggest detractors of short-selling (naked or clothed) are promoters and principals in penny stock companies. Why? Because promoters of penny stocks want to keep those stocks thinly traded. That is how they engineer the price. If short-selling were to suddenly make the market for those stocks more liquid, their prices might, after all, fall to some more reasonable approximation of what the underlying company is worth, and that is often closer to zero than to $100. Opponents act as if short-sellers are getting a free ride, especially when they naked short. The truth is something else. One of the most dangerous games in the world of selling short is shorting penny stocks. These stocks could go up 50-100%, or more, just as easily as halve. Short-sellers messing with penny stocks are taking on immense risk -- they don't need the rules to change against them. For its part, DTC is fighting back. It has a proposal in front of the Securities & Exchange Commission rightly arguing that it should be shareholders who demand their certificate in paper form, not the issuing companies who force shareholders to hold shares in one form or another. Good for DTC, and its proposal stands a reasonable chance of success. It won't, however, change anything for GeneMax or Nutek. They managed to demand paper certificates from shareholders before DTC asked for the rule change. It may seem mad in a world of electronic communications to suddenly become fond of paper share certificates, but no gambit is too tricksy in the Spy-vs.-Spy tussle between penny-stock promoters and short-sellers nationalpost.com ? Try LiveCharts - One Month FREE!

To: afrayem onigwecher who wrote (11482)	4/8/2003 7:19:57 PM
From: StockDung	Respond to of 19428

Boots & Coots staring at bankruptcy despite Iraq April 08, 2003 6:13:00 PM ET By C. Bryson Hull HOUSTON, April 8 (Reuters) - Boots & Coots International Well Control Inc. (WEL) acknowledged on Tuesday that it still faces bankruptcy risk despite the cash infusion it expects for its work battling oil well fires in Iraq. The Houston-based oil field firefighting company on March 28 rejected a proposal from one of its lenders, Checkpoint Business Inc., to declare Chapter 11 bankruptcy and cancel shareholders' equity. But Chairman Kirk Krist said the company's substantial debt -- $21 million at the end of 2002 -- means bankruptcy is still a possibility despites its efforts to the contrary. "The board of directors and senior executives continue to work toward an out-of-court restructuring of the company," Krist said in a conference call in which the company took no questions except for written submissions. Checkpoint, a mysterious group of investors chartered in Panama that Boots & Coots has refused to identify, lent the company up to $1 million in December and soon thereafter declared the loan to be in default. Boots & Coots on March 28 said it paid off roughly $700,000 in principal and interest it owed Checkpoint. Checkpoint's bankruptcy proposal led some investors to question whether it was a grab for control of Boots & Coots before it secured the substantial business fighting the Iraq oil well fires. Boots & Coots and competitors Wild Well Control, a subsidiary of Superior Energy Service Inc. (SPN), are the two firefighting companies subcontracted by Halliburton Inc.'s (HAL) engineering arm KBR to battle oil well blazes in southern Iraq. Both companies are now in Iraq's Rumaila oil fields fighting oil fires set by fleeing Iraqi soldiers. Boots & Coots Chief Executive Jerry Winchester did not elaborate on the company's progress or operations in Iraq. Halliburton, once run by U.S. Vice President Dick Cheney, on March 24 was awarded a U.S. Defense Department contract to rebuild Iraq's oil production infrastructure. CHECKPOINT MYSTERY The identity of Checkpoint's principals remains a mystery, although Boots & Coots on Tuesday denied that any of Checkpoint's members had ever worked for the company. Checkpoint still has an option to buy Boots & Coots' Venezuelan subsidiary, but has not signaled its intention to do so, Krist said. Kevin Johnson, the vice president of finance for Boots & Coots, said the company had assets of $4 million and total liabilities of $21 million at the end of 2002. That equalled a working capital deficit of $17 million, he said. "This resulted in a deficit on shareholders' equity of $14 million," Johnson said. Last week, Boots & Coots reported a net loss of $9.2 million for 2002, compared with net income of $1.3 million in 2001. When dividends for preferred shareholders were figured in, the loss to common shareholders for 2002 was $12.3 million, or 28 cents per share, compared with a net loss of $1.6 million, or 4 cents a share, in 2001. Shares of Boots & Coots, which has been threatened with delisting from the American Stock Exchange, closed on Tuesday at 61 cents, down 6 cents or nearly 9 percent. REUTERS © 2003 Reuters

To: afrayem onigwecher who wrote (11482)	4/9/2003 6:11:07 PM
From: StockDung	Respond to of 19428

Scam artists use patriotism as cover John Sullivan April 9, 2003 LAFAYETTE — Consumers are being warned that scam artists are using patriotism as a way of getting money from unsuspecting people. Sharane Gott, president of the Better Business Bureau of Acadiana, said Tuesday her office has received calls about organizations collecting funds for veterans and their families. She said the calls have been received during the past several days. “It’s unfortunate to think that citizens are the target of scam artists —even during a time of war,” Gott said. “We have learned, though, that fraud perpetrators pick newsworthy events to trigger interests in their marketing ploys.” Gott said the calls from Lafayette residents were about alleged charities collecting money for disabled veterans, homeless veterans and war orphans. Several callers also asked about Internet sites collecting money for organizations that are pro- and anti-war themed, she said. Gott added that no formal complaints have been filed, and all of the callers said they did not give the telemarketers any money. “No one doubts the urgent importance of supporting our military and their families,” Gott said. “You want to be certain, however, that your best wishes, money and other support actually goes to supporting those defending this country.” Gott said a national alert was sent to Better Business Bureaus advising them of three types of war-related pitches that have been reported: pleas for funds to help victims of the war or those fighting in the war; appeals to patriotism and claims of government affiliation or approval; and promotions that hype fear and panic. How to protect yourself: Never give out personal information to a telemarketer. Never give out financial information, such as credit card or checking account numbers over the telephone. Do not feel pressured into buying something. Ask for written information about a charity before donating to it. Contact the Better Business Bureau of Acadiana at (337) 981-3497. SOURCE: Better Business Bureau

To: afrayem onigwecher who wrote (11482)	4/12/2003 11:27:10 PM
From: StockDung	Read Replies (1) \| Respond to of 19428

At-home work firms accused of fraud By Michael Gormley, Associated Press, 4/12/2003 13:13 ALBANY, N.Y. (AP) State Attorney General Eliot Spitzer is suing two work-at-home operations that promised people they could earn thousands of dollars doing simple secretarial tasks. Spitzer said more than 70 consumers statewide complained about the firms that placed classified ads in weekly newspapers and pennysavers seeking workers with the promise of big pay checks to stuff envelopes and fill out forms. He filed the lawsuit Friday in state Supreme Court in Albany. Spitzer spokesman Darren Dopp said the practice appears to be widespread among work-at-home companies because of the large number of complaints. No charges were made against the firms' owners. ''Work-at-home schemes are attractive to many people in all walks of life, including homemakers, senior citizens and persons with disabilities,'' Spitzer said. ''It is imperative that consumers investigate a company before making any commitments. In many cases, these appeals involve substantial upfront costs and little or no return.'' Spitzer accuses Magnum Marketing and Promotions, based in Syracuse, of falsely claiming in newspaper ads that it would pay $500 to $3,000 a week for stuffing envelopes at home. Spitzer said people complained to his office that they had to pay a $40 enrollment fee and, instead of receiving envelopes, were sent instructions on how to place classified ads to recruit more participants. The owner, Frank Russo Jr. of Rome, declined comment through a spokesman, John Leonard. The other firm accused of civil charges of fraud, false advertising and deceptive business practices is National Marketing Network, based in Rome, Oneida County. Spitzer accuses the firm of placing newspaper ads nationwide promising pay up to $2,000 a week for filling out insurance firms. An upfront fee of $38 to $50 was charged and forms of potential contacts were sent, but contained inaccurate and useless information, according to Spitzer. Attempts to reach the president, Robert Bruno Castellini, at either National Marketing Network or the parent firm Castellini and Associates were unsuccessful. Castellini had an unpublished home phone number. None of the consumers who complained to the state earned the advertised income, Spitzer said. Attorney general's consumer line 800-771-7755. On the Net: oag.state.ny.us

To: afrayem onigwecher who wrote (11482)	4/16/2003 12:42:15 PM
From: StockDung	Respond to of 19428

YOURE NEXT?->SEC targets GeneMax tout Agora in broad Pirate case Wed 16 Apr 2003 Street Wire Also (U:GMXX) by Brent Mudry The United States Securities and Exchange Commission has filed an unflattering civil action against financial publisher Agora Inc., its PirateInvestor.com subsidiary and Pirate editor Frank Porter Stansberry, claiming Agora various newsletters spread "baseless speculation and outright lies." In its civil complaint, the SEC also claims Agora often forgets to disclose relationships to promoted companies, such as editor James Dale Davidson's position as an officer, director and significant shareholder of Endovasc Ltd. and controversial Howe Street promoters Grant Atkins and Brent Pierce's GeneMax Corp. In its civil complaint, announced Tuesday, the alleges that Agora, Pirate and Stansberry violated the antifraud provisions of the federal securities laws, and the regulator seeks disgorgement and civil fines from all three defendants. It should be noted that neither Mr. Davidson, nor any companies promoted by Agora, are specifically targeted by the SEC as defendants in the action. In its complaint, filed April 10 in U.S. District Court for the District of Maryland in Baltimore, the SEC claims the defendants Agora, Pirate Investor LLC and Mr. Stansberry engaged in a continuing scheme to defraud public investors by disseminating false information in several Internet newsletters published by Agora or its subsidiaries such as Pirate. The SEC notes that Agora, based in Maryland, publishes books, magazines and newsletters, and operates at least 15 financial Web sites in the U.S. and Europe. Its noted publications include The Cutting Edge, Penny Stock Advisory, The Red Zone, Taipan, Rogue Trader, The Flying V Lockup Trader, CSX Trader, Fleet Street Letter, Options Hotline, Outstanding Investments, Richebacher Letter, Daily Reckoning Investment Advisory, Carpathia Letter, Strategic Opportunities, Jim Davidson's Vantage Point Investing, and the Contrarian Speculator. The regulator asserts that Agora's publications have well over 21,500 paid subscribers. "Through various publications, defendants claimed to have inside information about certain public companies. Defendants suggested that its readers could cash in on the inside information and make quick profits. The defendants offered to sell the inside information to newsletter subscribers for a fee of $1,000," states the SEC. (All figures are in U.S. dollars unless otherwise noted.) "Numerous subscribers purchased the defendants' 'inside tips' and made investment decisions based on that information. The purported inside information was false and, as a result, the subscribers did not realize the profits the defendants promised." The SEC claims the defendants, however, "profited handsomely," with Agora receiving more than $1-million from the sale of false information to its newsletter subscribers. The SEC notes that Agora's newsletters, including PirateInvestor.com, claim to be "a service featuring independent, original and thoughtful research into the process of wealth creation." "Instead, the newsletters contain nothing more than baseless speculation and outright lies, fabricated to induce investors to pay Agora (or its subsidiaries) for subscriptions or purported inside information," states the SEC. "The subscribers paid Agora for the alleged insider information only to later discover that the inside information was false." Much of the complaint is devoted to Pirate's promotion last May of USEC Inc., which bills itself as the world's leading supplier of enriched uranium fuel for commercial nuclear power plants. Pirate allegedly lured subscribers through spam E-mails touting the unnamed company as being on the verge of a major deal, relating to buying dismantled Russian nuclear warheads, which would create more than $2.5-billion in profits, then offering to sell a full report identifying the company for $1,000. A USEC official confirmed to the SEC that some of Mr. Stansberry's claims were false, while others were general public domain amongst analysts. In a broader section of its complaint, the SEC also claims Agora continued disseminating false information about penny stock companies, typically with cures for cancer or AIDS or a technological breakthrough, even after the publisher became aware it was under investigation. "In some instances, the individual writing the reports Agora provides to its subscribers has an undisclosed relationship to the company being promoted. For example, James Dale Davidson is the editor of Agora's Vantage Point Investment Advisory, a financial newsletter with a worldwide circulation," states the SEC. "In December, 2002, and January, 2003, Agora distributed E-mails written by Davidson to its subscriber base. These E-mails promote several unnamed microcap issuers and offer to provide reports naming these issuers if the recipient of the E-mail paid $149 to subscribe to the Vantage Point newsletter," states the SEC. "Among the issuers promoted in this manner have been GeneMax Corp. and Endovasc Ltd., Inc. Davidson is an officer, director and, indirectly, a substantial shareholder of these two issuers. Neither the soliciting e-mail nor the subsequent company report discloses Davidson's relationship to the companies." Mr. Davidson has been a director of GeneMax, a tiny biotechnology company listed on the OTC Bulletin Board and based in the border town Blaine, Wash., since it began trading last July after a reverse takeover of Eduverse.com, one of the penny shells in the stable of Mr. Pierce and his long-time associate Mr. Atkins. Since then, the company has been in the midst of a high-profile broad penny stock war against naked shorts. Mr. Pierce had the misfortune of being banned for 15 years and fined $15,000 (Canadian) by the British Columbia Securities Commission in 1993 in the Bu-Max Gold case. Two years later, Stockwatch revealed Mr. Pierce's behind-the-scenes involvement in Ultra Pure Water Systems (Canada) Inc., a disastrous Howe Street promotion which left $2.36-million (Canadian) in unpaid debits at seven brokerages after the Alberta Stock Exchange abruptly halted the stock. A number of Mr. Pierce's fronts, including Ultra Pure president Mr. Atkins, a key player in the promoter's former Vancouver Stock Exchange promotion, Cost-Miser Coupons, opened or dealt in dubious offshore accounts at Merit Investments, the brokerage which took the biggest hit, although Mr. Pierce was careful to keep his name off any public documents for Ultra Pure. The Ultra Pure case was the feature of a major probe by the commercial crime section of the RCMP. The Mounties capped up a 13-month criminal investigation in April, 1996, with a recommendation that charges be laid, but a Crown prosecutor subsequently "no-charged" the file, in a controversial decision. There is no allegation, of course, of any wrongdoing in regards to GeneMax, or that anyone involved with GeneMax had any idea that Agora tout Mr. Davidson forgot to disclose his ties to the company in his newsletter promotion. By coincidence, on Tuesday, the same day the SEC announced its Agora prosecution, noting Mr. Davidson, GeneMax released its 10KSB annual report, which describes him as "an initial founding shareholder." The filing notes that Mr. Davidson is GeneMax's second biggest declared shareholder, with 1.46 million shares, an 8.63-per-cent stake. This includes 788,000 shares held in his own name and a total of 500,000 shares held in the name of his two minor children, over which he has sole voting and disposition rights. bmudry@stockwatch.com (c) Copyright 2003 Canjex Publishing Ltd. stockwatch.com

To: afrayem onigwecher who wrote (11482)	4/17/2003 5:13:41 PM
From: StockDung	Respond to of 19428

NYSE Investigating Trading at Specialist Firms (Update2) By Philip Boroff New York, April 17 (Bloomberg) -- The New York Stock Exchange is investigating whether specialist firms, including FleetBoston Financial Corp. and LaBranche & Co., illegally traded stocks ahead of their clients, a practice called front running. FleetBoston specialist David Finnerty on Monday was suspended in connection with the trading of the shares of General Electric Co., the largest company by market value. ``While exchange policy precludes us from commenting on regulatory matters, the NYSE does confirm that, as part of its ongoing commitment to surveilling the marketplace, it is conducting a review of trading practices at several specialist firms,'' the exchange said in a statement. NYSE spokesman Ray Pellecchia declined to elaborate further. The investigation, which comes as revenue at specialist firms is plummeting, may examine whether specialists profited from their position on the floor of the exchange by trading on information they received on buy and sell orders before the general public. NYSE specialists control trading on the Big Board by overseeing individual stocks and acting as middlemen, pairing buyers and sellers. They're obligated to ensure continuous trading and make money based on the volume and volatility in shares. LaBranche has exclusive rights to trade in about 582 of the NYSE's common stocks. Some of the exchange's largest customers, institutional investors such as mutual funds, have complained specialists ignore their orders and capitalize on the knowledge of incoming orders by trading ahead of them. Michael LaBranche, chief executive of LaBranche, the largest NYSE specialist, said he doesn't comment on regulatory matters. ``We work diligently to make sure our customers are getting best prices available,'' he said in an interview. ``It is our priority to make sure their interests are protected.'' LaBranche shares fell as much as 8.3 percent on news of the investigation. The stock, down 38 percent this year, slid $1.48 to $16.42 at 2:13 p.m. in NYSE composite trading. Fleet spokesman Charles Salmans said yesterday ``an internal investigation caused us to place an employee on administrative leave.'' Finnerty didn't return a call for comment. FleetBoston shares fell 14 cents to $25.16. The investigation comes at a difficult time for specialist firms. Companies like LaBranche have seen profit fall as trading has declined along with the slide in U.S. benchmark indexes and shares have started trading in penny increments instead of fractions, cutting revenue. LaBranche on Tuesday said first-quarter profit fell 80 percent as trading for its own account declined. Revenue fell 37 percent to $77 million. The Securities and Exchange Commission rebuked the NYSE in 1999 for a breakdown in supervision allowing floor brokers to profit illegally by sharing in customers' gains. NYSE Troubles The NYSE has been enmeshed in a series of recent embarrassments. Most recently, Citigroup Inc. Chairman Sanford Weill withdrew his name as a candidate for the NYSE board, after New York Attorney General Eliot Spitzer complained Weill was an inappropriate appointment given Citigroup's prominence in the probe of research analysts. On Monday, the NASD charged Invemed Associations Inc., an investment bank run by NYSE director Kenneth Langone, with charging inflated commissions to customers in exchange for sought- after initial public offerings. The Wall Street Journal earlier reported the investigation into LaBranche. Last Updated: April 17, 2003 14:21 EDT

To: afrayem onigwecher who wrote (11482)	4/17/2003 7:03:41 PM
From: StockDung	Read Replies (1) \| Respond to of 19428

Australia threatens to jail fraud suspects SYDNEY - Australian Treasurer Peter Costello said the leaders of failed insurance giant HIH should be jailed if they commited crimes and contributed to the biggest collapse in Australian corporate history. In a damning report that bumped the Iraq war off newspaper front pages around Australia Thursday, a Royal Commission of inquiry said the leaders were guilty of mismanagement and should be pursued for possible breaches of criminal as well as civil law. HIH Insurance sensationally imploded in March 2001 to the tune of 5.3 billion dollars (3.2 million US) and the story was subsequently embellished with tales of spending extravagance, witnesses trying to flee the country before giving evidence and doctored testimonies. Comparisons were made with failed US energy giant, Enron. "A calamity born of ineptitude," was the headline in the Sydney Morning Herald, which led other newspapers in devoting several pages to the report. "The royal commission's report on the follies, indulgences and stupidities of the men who ran HIH would serve as a manual on how not to run an insurance company," said the Australian Financial Review. In his 1,500 page report published Wednesday, commission chief Neville Owens detailed the events leading to the collapse, laying the blame squarely with those who managed the insurance group and criticising the industry watchdog and auditor Arthur Andersen for not doing their jobs. He said HIH collapsed because it ran out of money – it failed to set aside enough money for future claims. But its leadership continued to spend vast amounts, they misled watchdogs and the shareholders were non the wiser. "There was blind faith in a leadership that was ill-equipped for the task," Owen said. Costello said he had already referred some matters to prosecutors. "All of the evidence will be put before the courts and, if the courts convict somebody of a criminal offence, yes, I believe it would be appropriate for a jail term to be imposed," Costello told Australian Broadcasting Corporation radio. "... I can pledge to investors and policy-holders alike that the investigative bodies will be fully funded to get all of the evidence and we will be asking the prosecutors to aggressively prosecute in the courts." In the Federal Court Thursday, about 1,200 HIH shareholders launched a class action against the group's directors, auditors and reinsurance firms to recoup an estimated 70 million dollars in losses. Their lawyer said HIH had misled the shareholders about the value of the shares at a time when directors knew the company had a negative net worth. Owens said founder Ray Williams could face three criminal charges for providing false or misleading information. The offences each attract two-years' jail. "No-one rivalled him in terms of authority or influence," said Owen. Rodney Adler, the director of FAI insurance which was bought by HIH, faces a possible criminal charge for making false or misleading statements to secure a deal with entrepeneur Brad Cooper. "Adler had a flawed understanding of the concept of conflict of interest," concluded Owen. Cooper was paid millions of dollars by HIH through his failed burglar alarm business and could be charged with bribing an HIH executive with a BMW convertible. "For reasons that were never satisfactorily explained, HIH's cashflow problems seeemed to present little impediment to Cooper receiving funds." AFP

To: afrayem onigwecher who wrote (11482)	4/18/2003 5:38:08 PM
From: StockDung	Respond to of 19428

Couple charged with criminal securities fraud Associated Press Posted on Fri, Apr. 18, 2003 COLUMBIA, S.C. -A Midlands high-tech entrepreneur and his wife have been charged with criminal securities fraud. Tracy and Nancy McGee were arrested Wednesday on felony charges of lying to investors, according to the state attorney general's office. Tracy McGee, 40, is charged with breach of trust and fraud. If convicted, he could be sentenced to 20 years in prison. Nancy McGee, 39, is charged with breach of trust and could be sentenced to 10 years if convicted. Wesley Shaw, an employee of the McGees, also was charged with helping mislead more than 60 investors who put more than $1 million into companies controlled by the couple. Shaw, 52, faces a maximum sentence of five years if found guilty. The McGees started two failed technology firms, MediCompass and Top Box. Investors put $1.1 million into MediCompass, according to previous findings by the attorney general's office. The company was supposed to make laptop computers for medical workers, but an investigation by the State Law Enforcement Division found no proof that any products were ever sold. Top Box was supposed to manufacture flat, plasma television screens installed in sports stadiums. The company never had any major operations, and investors say the McGees misled them. Jack Swerling, an attorney for the couple, said they would be cleared of any wrongdoing. "These people are innocent," Swerling said. "When the dust settles, we expect them to be fully exonerated." Almost two years ago, the state attorney general's office fined the couple $800,000 for civil securities fraud. A spokesman for the attorney general's office said attempts to recover these fines will be put on hold while the more serious criminal charges are pursued. In addition to the attorney general's actions, Tracy McGee and his companies have been the subject of six lawsuits by investors, suppliers and former employees. Many of those lawsuits have resulted in judgments against the couple. One group of investors that won a judgment is still trying to recover $500,000 it says was lost in a McGee company.

To: afrayem onigwecher who wrote (11482)	4/21/2003 1:41:47 PM
From: StockDung	Respond to of 19428

Former A.S. Goldmen stockbroker dies in New York prison Wednesday, April 16, 2003 Daily News staff Paul Cilmi, a former A.S. Goldmen & Co. stockbroker who stood trial with the firm's Naples owner in a $100 million stock fraud case, has died in state prison in Marcy, N.Y. Cilmi, 34, died April 10 of a heart attack after a prison basketball game, Oneida County Coroner Mark Bentz said Tuesday. Sentenced to two to four years, Cilmi was up for release in November. Cilmi of Brooklyn was acquitted in July 2001 of the racketeering charge he faced but was convicted of a more minor securities fraud charge and charges that he falsified business records. Firm owner Anthony Marchiano, formerly of Naples, is serving a sentence of 10 to 30 years in the high-profile case that netted national headlines and jilted thousands of investors across the country. Following a nearly seven-month trial in Manhattan, Marchiano was convicted of racketeering and multiple other stock fraud charges in July 2001. Prosecutors said he orchestrated a massive securities fraud over 10 years that swindled investors out of nearly $100 million. The swindles include manipulating the securities of 10 small companies, including one backing the failed Stadium Naples golf arena. Regulators across the nation dubbed Goldmen one of the nation's most notorious boiler rooms, so named for the high-pressure sales pitches brokers used to seduce customers over the telephone.

To: afrayem onigwecher who wrote (11482)	4/21/2003 3:32:34 PM
From: StockDung	Read Replies (1) \| Respond to of 19428

Austin Medical Technologies, Inc. Announced Today That It Claims to Be A Victim of Financing Fraud DALLAS, April 21 /PRNewswire-FirstCall/ -- Austin Medical Technologies, Inc. (OTC Pink Sheets: AMTV) announced today that it claims to be a victim of financing fraud. The company closed a financial transaction on December 5th 2002 in the amount of $1,750,000 (USD), and as of April 21st 2003, the company has not received these funds. The loan was closed at the offices of Lloyd Ward and Associates, located at 2201 West Royal Lane, Suite 212, Irving, Texas 75063. The representative for Lloyd Ward stated that the funds were confirmed and would be disbursed to Austin Medical Technologies, Inc. on the 11th of December 2002. This loan was made between Austin Medical Technologies, Inc. and the United Indian Credit Union (UICU). June Driskell, of Driskell Financial with offices located at 1109 Bedford Rd., Suite B, Bedford, Texas 76022, acted as agent for the UICU. Keith Tarter, CEO of Austin Medical Technologies said, "The failure of the financial institution to perform on this financing, has caused material harm to the company in its ability to bring on new business, keep its commitments with its partners and deliver the service levels its customers have come to expect. We are very grateful to our customers, partners, shareholders and suppliers for their support during this difficult period. Local, state and federal authorities have been notified." Tarter went on to say, "Shareholder value has been adversely impacted and corrective action will need to be taken. The long-term outlook for the company is good and alternate financing options are being pursued." About Austin Medical Technologies, Inc. Austin Medical Technologies delivers "DIRECT" from the manufacturer to the Surgeon, the only technology-based "Single Source Supply Solution" for custom sterile procedure trays (CPT) and medical devices dedicated exclusively to the multi-specialty Ambulatory Surgery Center (ASC) market. Under the brand name eyeDirecti, Austin MedTech is initially focused on Ophthalmology owned and operated ASCs which consist of 2,500 practices with 15,000 surgeons performing 4.4 million surgical procedures annually at a supply cost of $400,000,000 per year. Visit our e-commerce site at www.eyeDirecti.com . The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this communication (as well as information included in oral statements or other written statements made or to be made by Austin Medical Technologies, Inc. or its wholly owned subsidiaries) contains statements that are forward-looking, such as statements relating to the future anticipated direction of the medical and technology industries and plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of Austin Medical Technologies or its wholly owned subsidiaries. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financial activities, domestic and global economic conditions, changes in federal or state tax laws, and market competition factors. SOURCE Austin Medical Technologies, Inc. CO: Austin Medical Technologies, Inc.; Lloyd Ward and Associates; United Indian Credit Union; Driskell Financial ST: Texas SU: LAW prnewswire.com 04/21/2003 11:07 EDT

To: afrayem onigwecher who wrote (11482)	4/24/2003 10:38:40 AM
From: StockDung	Read Replies (1) \| Respond to of 19428

LAWYERS NOW EYEING NEW PRIZE: QUATTRONE MILLION$ By ERIC MOSKOWITZ April 24, 2003 -- Federal prosecutors and class-action litigators are eyeing Frank Quattrone's $500 million in assets - and trying to figure out how best to pry the loot away from him now that he's facing criminal charges. As the single most important Wall Street executive in the tech boom, Quattrone banked as much as half a billion dollars by bringing countless IPOs to market, say sources. The NASD said it will seek to recoup some of the $200 million it says Quattrone earned between 1998 and 2001, and the U.S. Attorney's Office is seeking $250,000 for each of three obstruction of justice charges. With securities lawyers and other regulators also lining up for the assets, the former Credit Suisse First Boston tech banker could lose "a good portion" of his fortune in the coming months and years, said one class-action litigator. "The SEC also may very well sue him and seek monetary restitution for harm caused to investors," agreed John Coffee, a securities law professor at Columbia University. "And once civil charges are filed [against Quattrone], class-action litigators and other state and federal regulators will be after him for a long time." Prosecutors could also try to freeze Quattrone's assets if he is eventually charged with financial fraud by New York Attorney General Eliot Spitzer or the U.S. Securities and Exchange Commission - as the federal regulatory body did to former HealthSouth CEO Richard Scrushy last month. New York Attorney General and SEC spokespersons declined to comment. Quattrone's lawyer, John Keker, didn't return calls for comment. CSFB has said it will continue to defend Quattrone, but if wrongdoing is found the bank may demand that Quattrone pay his own legal fees.

To: afrayem onigwecher who wrote (11482)	4/24/2003 1:54:00 PM
From: StockDung	Read Replies (1) \| Respond to of 19428

SEC May Block Tax Deduction in Wall Street Pact, People Say By Robert Schmidt Washington, April 24 (Bloomberg) -- The Securities and Exchange Commission, reviewing the $1.4 billion Wall Street conflict-of-interest settlement, may recommend that the 10 firms be barred from deducting the cost from taxes or seeking insurance reimbursement, people familiar with the plan said. An additional provision in the agreement with Citigroup Inc., Merrill Lynch & Co. and eight other investment banks would say the money the firms pay to fund independent research and educate investors is not intended to be tax-deductible. Senate Finance Committee Chairman Chuck Grassley and Senate Commerce Committee Chairman John McCain said the punishment is meaningless if the firms don't have to pay the full penalty. ``We should all know the tax and insurance consequences of this proposal,'' said Grassley, an Iowa Republican, earlier this week. He said he was concerned ``that Wall Street may be getting just a slap on the wrist.'' The firms reached a preliminary settlement in December with state and federal regulators of claims that to win banking business, their analysts misled investors with recommendations to buy stocks that they privately disparaged. SEC approval is among the final required steps before the settlement would take effect. If it clears the SEC, the agreement would still need to be approved by a federal judge. Other firms in the settlement are Credit Suisse First Boston, Bear Stearns Cos., Goldman Sachs Group Inc., J.P. Morgan Chase & Co., Lehman Brothers Holdings Inc., Morgan Stanley, UBS Warburg LLC and U.S. Bancorp. Deutsche Bank AG, earlier scheduled to be part of the settlement, will be held back by its failure to produce e-mails relating to its analysts' recommendations, California regulators said. Closed Meeting The five SEC commissioners are meeting today in closed session to continue hearing a presentation on the settlement terms from SEC Enforcement Director Stephen Cutler. Today's session is the second closed meeting the commissioners have held this week to discuss the settlement. The wording of the new provision is still being debated, the people said. SEC spokesman John Nester declined to comment. SEC Chairman William Donaldson, replying last month to Grassley about his concerns that the firms could deduct the cost of the settlement from their taxes or claim insurance reimbursement, wrote: ``I share your view that settlements should not be structured to provide wrongdoers with tax or insurance benefits. At the same time, certain remedies available may be tax deductible under the IRS code or eligible for insurance coverage.'' No vote on the settlement is expected today although the SEC still is planning to hold a press conference on Monday to announce the agreement, these people said. Separate Settlements Cutler has been presenting the case to the commissioners as 10 different settlements, one for each firm, these people said. Ultimately, the SEC commissioners will take 10 separate votes to approve the agreement, these people said. New York Attorney General Eliot Spitzer and other regulators have released e-mails from the firms' analysts in which they admitted buy recommendations were given to some stocks to win business from banking clients. ``For the settlement to have meaningful punitive effect and deterrent value, it must reflect the principle that wrongdoers should pay for the wrongs they have committed,'' said McCain, an Arizona Republican, in a statement yesterday. ``These burdens should not be transferred to others.'' Last Updated: April 24, 2003 12:19 EDT

To: afrayem onigwecher who wrote (11482)	4/24/2003 4:32:23 PM
From: StockDung	Respond to of 19428

U.S. probes fraud at 130 firms By David Voreacos BLOOMBERG NEWS Thursday, April 24, 2003 NEW YORK -- U.S. prosecutors are investigating possible fraud by executives at about 130 public companies and are likely to file new criminal charges in dozens of those cases, U.S. Justice Department officials said. "We had thought that maybe this corporate fraud crisis had reached a peak, but we continue to have new investigations and new allegations on companies on a regular basis," said Keith Slotter, chief of the FBI's financial-crimes section. "At this point, it has not shown any sign of ebbing." Prosecutors have charged executives with fraud and related crimes in some of the 130 cases, including those involving Enron Corp., WorldCom Inc., Kmart Corp. and HealthSouth Corp. Slotter declined to name which executives might be charged. Prosecutors are investigating allegations of fraud against officials at Lucent Technologies Inc., Charter Communications Inc., Bristol-Myers Squibb Co. and AOL Time-Warner Inc., the companies said. Pursuit of such executives should help restore confidence in the integrity of U.S. stock and bond markets, said Sean Harrigan, president of the California Public Employees' Retirement System, the largest U.S. pension fund. "It's important that the Justice Department pursue cases aggressively and get a lot of exposure, which has a big impact on re-establishing trust between the owners of capital and those who manage it," said Harrigan, who controls $136 billion in assets. The Federal Bureau of Investigation has doubled to 200 the number of agents probing corporate corruption in the past year, and wants to add another 60 to pursue cases, Slotter said. Fraud task force The Justice Department crackdown also charged executives at Adelphia Communications Corp., Qwest Communications International Inc., and Dynegy Inc. Many more will be charged by the department's Corporate Fraud Task Force, which began operations last July, or by the nation's 94 U.S. attorneys, Slotter said. Bryan Sierra, a spokesman for the Justice Department, said prosecutors are working on about 130 fraud cases, including those in which some charges have been filed. The FBI is involved in about 100 of those cases, Slotter said. "I expect that criminal charges will result from a majority of the investigations," Slotter said. The U.S. effort began after the collapse in 2001 of Enron, which lost $68 billion in market value as a result of misstating its finances by hiding debt in off-the-books partnerships. The investigations intensified after New York Attorney General Eliot Spitzer probed stock research at Wall Street firms, new U.S. corporate-governance rules were enacted and the U.S. Securities and Exchange Commission opened a record number of cases of all types. The SEC has 2,200 ongoing investigations and brought 598 enforcement actions in the fiscal year that ended last September. Long pipeline "While corporate America may have learned from these recent scandals, the government is still working its way through an apparently long pipeline of companies involving misconduct before the market downturn that began in 2000," said Philip Khinda, a former SEC attorney with Ropes & Gray, a Washington law firm. FBI agents work with the SEC on three types of crimes: accounting fraud and insider trading; self-dealing transactions that enrich employees; and obstructing justice by lying under oath, destroying documents or coercing others to do so. The stock market slump that began in 2000 exposed circumstances that pushed some executives to commit crimes, prosecutors said. Executives inflated earnings to conceal business weaknesses and pump up the value of their stock options, said U.S. Attorney James Comey in Manhattan. 'Cooking the books' "A lot of these people convinced themselves that cooking the books was just a temporary stopgap, that the business plan was good, and if we can just get around the next corner, we'll be fine," Comey said. "Your two options are tell the truth and take a hit, or lie and cook the books and hope to stay afloat." Most executives caught in accounting fraud never intended to break the law, Comey said. "They don't start out as crooks, but they get themselves in a squeeze and don't make the right call under pressure," he said. The U.S. attorney in New Jersey, Christopher Christie, said ego, greed and pride drove the lawbreaking. "Many of these CEOs are achievers and they want to continue to be seen as achievers," Christie said. "They want to be seen in the community as someone who made their numbers." Prosecutors rely on documents, e-mails and insiders to decide whether executives falsified financial results or illegally structured transactions. They must assess whether executives knew their actions were wrong -- the threshold for fraud. 'What Were They Thinking?' "What makes all white-collar cases so challenging is we have to prove what was in someone's head," Comey said. "Once a transaction is done, the issue becomes: What were these guys thinking? Those people are frequently able to point to lawyers and accountants and say, 'They told me it was OK.'" Prosecutors work closely with SEC attorneys to navigate impediments to investigations, such as bankruptcies and shareholder lawsuits run by lawyers who want access to incriminating documents or witnesses. Prosecutors also have to avoid needless disclosure of investigations, which can also punish a target company's stock, Slotter said. "We are very cognizant of that and very cautious in our approach," Slotter said. "But I don't think the public can stand to wait for long-term investigations. The public is seeking confidence in the market, and they expect and demand that these investigations are conducted as swiftly as possible." The FBI's corporate fraud hot line is (888) 622-0117.