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

To: StockDung who wrote (132042)	4/28/2004 3:31:57 PM
From: Taki	Respond to of 150070

Unreal.The indictment charges that the defendants were paid cash bribes by unscrupulous stock promoters fraudulently to pump up 14 different stocks to artificially raise and manipulate the stocks' prices. Promoters paid the firm bribes of $11.8 million by check and wire transfer, with millions more paid in cash The cash payments to the individual brokers were sometimes over $10,000 per month, and generally ranged from hundreds to thousands per month. If a broker had a big month selling stocks he could become "entitled" to $50,000 or more in cash, but the payments would be pieced out over a series of months. The money raised through the sale of these manipulated stocks was split between the promoter, LCP Capital, and the individual brokers; usually the promoter got 60% of the proceeds, while the remaining 40% was split between LCP and the brokers.

To: StockDung who wrote (132042)	4/28/2004 3:33:40 PM
From: Taki	Read Replies (3) \| Respond to of 150070

man oh man.Although the total losses suffered by investors are not yet known but more than $50 million worth of stocks involved in the scheme was sold to unsuspecting customers. The hardships visited on customers by the LCP schemes are shown by a few examples. One customer was a retired commercial pilot who lost $200,000 on LCP stocks. His losses forced him to start working again, but he was too old to be a pilot and had to take a job as a security guard. A second customer, also an airline pilot, invested his $850,000 IRA account in LCP stocks and lost it all. A third customer found that an unauthorized purchase of stock was made in his account for about $25,000. When he complained, the broker refused to reverse the trade and threatened to sue the customer if he did not pay for the purchase. The customer took out a loan secured by his house to pay for the shares, whose purchase he had not authorized in the first place. The customer is still paying off the loan; the stock has since lost all its value.