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Microcap & Penny Stocks : ECNC (OTC:BB) - eConnect -- Ignore unavailable to you. Want to Upgrade?

To: Ronald P. Margraf Sr. who wrote (18186)	3/3/2004 1:29:30 AM
From: DaiTN	Read Replies (2) \| Respond to of 18222

ASSOCIATED PRESS 2:38 p.m. March 2, 2004 LOS ANGELES – The former CEO of technology firm eConnect was sentenced to more than eight years in prison for overseeing a scheme that defrauded investors of $4.1 million by artificially inflating the company's stock price, officials said Tuesday. Thomas Hughes, 56, was sentenced late Monday in federal court, the U.S. attorney's office said in a statement. Hughes, of Rancho Palos Verdes, pleaded guilty last August to three counts of securities fraud for distributing false press releases and making misleading statements on the company's Web site. He also pleaded guilty to one count of criminal contempt of court for violating a 2000 federal injunction issued by the Securities and Exchange Commission by spreading misleading information about the company. Hughes had faced up to 30 years in prison on the securities fraud charges and an indefinite maximum sentence on the contempt count, officials said. He received a sentenced of eight years and one month. The Los Angeles-based company developed electronic payment software and hardware. Prosecutors say Hughes helped send out press releases claiming that eConnect had obtained a $20 million investment in quality asset-backed bonds and started a stock repurchase program. In reality, the bonds had little value and no stock buyback program existed, prosecutors said. eConnect has since come under new management and changed its name to EyeCashNetworks, prosecutors said. Officials at the firm, which provides services for making payments through the Internet, are not charged with wrongdoing.

To: Ronald P. Margraf Sr. who wrote (18186)	3/3/2004 4:28:59 PM
From: StockDung	Read Replies (9) \| Respond to of 18222

JK Harris 165 Services Says Investment Fraud Victims Find Relief in Little Known Tax Law March 02, 2004 11:39 AM US Eastern Timezone TAMPA, Fla.--(BUSINESS WIRE)--March 2, 2004--All too often, victims of investment fraud fail to receive the full tax benefits permitted by the IRS, according to JK Harris 165 Services, LLC, a subsidiary of JK Harris & Company that specializes in assisting investment fraud victims. If they treat the loss as a capital loss, it can only be used to reduce ordinary income by $3,000 per year. The remainder may only be used to offset capital gains, at a rate that is generally lower than their income tax bracket. In this case, if an individual has no capital gains, a $100,000 investment loss would take more than 33 years to recover. But if the loss qualifies as theft under long-standing IRS code Section 165 (c)(2), injured investors may receive substantially larger tax benefits. Richard Kess, vice president of client services for JK Harris 165 Services said, "Most investors don't know about Section 165." Kess said that many CPAs apply Section 165 to theft of property, "but don't seem to know it also pertains to investment theft." A 1999 Law Enforcement Bulletin by the U.S. Department of Justice estimated seven percent of all investors are targeted for investment fraud. In 2002, securities regulators at the White Collar Crime Center estimated that securities and commodities fraud totaled about $40 billion per year. Kess said that while most of these losses are institutional losses, individual investors are still highly exposed. Bart Siegel, CPA, an independent investment and tax expert and part of JK Harris 165 Services' network of attorneys, CPAs and other professionals, said this often overlooked benefit is not just for the wealthy few. "If a married couple in the 28 percent tax bracket filing jointly, with a net taxable income of $160,000, has an investment loss of $240,000 that qualifies for a Section 165 (c) 2 deduction, their taxable income could be reduced to zero," said Seigel. "This would save them approximately $34,000 in taxes versus taking the standard $3,000 capital loss deduction (based on 2003 tax tables). He said they may also carry forward the additional $80,000 in unused deductions to minimize taxes due in future years, or carry back to receive refunds for previously paid taxes. "The benefits can be enormous," he said. "Victims of investment fraud owe it to themselves to find out if they qualify for this important tax relief." Kess said that his company, the nation's leader in substantiating Section 165 claims, stays busy educating injured investors. "Not all investment losses qualify for a Section 165 (c)2 deduction," said Kess. "Our specialists complete a detailed documentation process to determine which losses meet IRS guidelines." He recommends that anyone who thinks their losses may qualify review the following qualifications, all of which must be met: -- Your investment loss was the result of an intention to defraud. -- Your investment was illegal in the state where the theft took place. -- You have no reasonable prospect of recovering your investment loss. -- Your investment was not purchased with monies within a qualified, tax-deferred retirement account. Kess said that his company's specialists consult with individuals and their tax professionals at no cost or obligation to evaluate whether a Section 165 deduction would be of benefit. Additional information is available at the company's web site at 165services.com, or by calling 800-830-7617. Contacts JK Harris 165 Services, LLC, Tampa Richard A. Kess, 813-258-1636 or The Xposure Group, Inc. Steve Holub, 813-657-1363