Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion. -- Ignore unavailable to you. Want to Upgrade?

To: jmhollen who wrote (117962)	8/13/2003 12:10:16 PM
From: StockDung	Respond to of 150070

Inmate Register Number : THOMAS STEPHEN HUGHES 24508-112 Name : THOMAS STEPHEN HUGHES Age : 56 Race : WHITE Sex : MALE Projected Release Date : UNKNOWN Location : LOS ANGELES MDC 535 N ALAMEDA STREET LOS ANGELES , CA 90012 Phone Number : (213)485-0439

To: jmhollen who wrote (117962)	8/13/2003 12:11:34 PM
From: StockDung	Read Replies (2) \| Respond to of 150070

The former CEO of technology firm eConnect pleaded guilty to overseeing a scheme to artificially inflate the company's stock price by issuing false financial information, federal prosecutors said. Thomas Hughes, 55, was charged with three counts of securities fraud for distributing false press releases and making misleading statements on the company's Web site, the U.S. Attorney's Office said Monday in a statement. The Rancho Palos Verdes resident also pleaded guilty to one count of criminal contempt of court for violating a previous federal injunction by spreading misleading Tuesday, August 12, 2003 10:25AM EDT Ex-tech firm CEO pleads guilty in stock scheme By THE ASSOCIATED PRESS LOS ANGELES (AP) - The former CEO of technology firm eConnect pleaded guilty to overseeing a scheme to artificially inflate the company's stock price by issuing false financial information, federal prosecutors said. Thomas Hughes, 55, was charged with three counts of securities fraud for distributing false press releases and making misleading statements on the company's Web site, the U.S. Attorney's Office said Monday in a statement. The Rancho Palos Verdes resident also pleaded guilty to one count of criminal contempt of court for violating a previous federal injunction by spreading misleading information about the company. Hughes was scheduled for sentencing Dec. 1 by U.S. District Judge Nora Manella. He faces up to 30 years in prison for the securities fraud charges and an indefinite maximum sentence for the contempt count. "Manipulation of the markets will not be tolerated," U.S. attorney Debra Yang said in the statement. The technology firm has since come under new management and changed its name to EyeCashNetworks, said David Willingham, assistant U.S. attorney. The company provides services for making payments through the Internet, according to its Web site. EyeCashNetworks and its management are not charged with wrongdoing. The criminal case was filed in August 2002. Hughes and eConnect, based in Los Angeles' San Pedro section, were previously sued by the Securities and Exchange Commission in 2000 for issuing false press releases. To settle the suit, Hughes agreed to a permanent injunction barring him from future violations of federal securities laws. The contempt charged stemmed from that settlement. Prosecutors say Hughes helped send out press releases claiming eConnect had obtained a $20 million investment in quality asset-backed bonds, started a stock repurchase program, and received a purchase order of nearly $1 million for one of its products. In reality, the bonds had little value and no stock buyback program existed, prosecutors said. Shares of eConnect were sold through a broker instead of major stock exchanges. The SEC suspended trading in eConnect stock on July 26 last year. Along with the criminal case, the SEC filed a second civil lawsuit charging Hughes and eConnect with federal securities law violations. The SEC plans to ask Judge Manella to grant summary judgment against Hughes at a hearing scheduled for Sept. 22.