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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation? -- Ignore unavailable to you. Want to Upgrade?

To: ravenseye who wrote (2823)	9/17/2007 8:15:34 PM
From: kimfay98	Read Replies (1) \| Respond to of 5034

WOW!! I was reading some of your old posts and a few others and this stuff really gets deep doesn't it? I had no clue there were so many boards devoted to this subject. Probably a good thing or I'd have got myself into a lot of trouble. I'm somewhat naiive. It's the little guys who are leading this isn't it? No wonder it's taking so long. I'm confused to no end now. Is Patrick Bryne part of the scam or a victim? I hope he didn't get caught up in that all time sucker people can get pulled into called greed. I sure was right in 1999 when I started thinking about this whole scam though. Someday I kept saying these guys will start falling like dominos. It appears to be the way it is happening. The part that bothers me most is they fall but they don't ever collect or freeze their assets for pay back to the small time investor's who lost the money they stole from. So where is fairness? The Judge's, Attorney's and other people collect off the fraud and that's it??? I'm seriously disappointed in this whole world. And I think with good reason. Had I done one tenth of what these guys have done I'd be in prison for life. I helped a gal and I was fired from my job and had to fight with my life to get it back. Just venting.

To: ravenseye who wrote (2823)	9/24/2007 6:25:58 PM
From: rrufff	Read Replies (2) \| Respond to of 5034

Remember all those shortie gurus that used to know when a class action was going to be filed? ============================================================== 'King of class actions' pleads guilty in payments case usatoday.com By Edward Iwata, USA TODAY Securities-fraud attorney William Lerach, a champion to shareholders and a bane to businesses for decades, pleaded guilty on Tuesday to a federal charge that he and others tried to conceal secret payments to plaintiffs in shareholders' lawsuits. Lerach, a legal lightning rod known as "king of the class actions," was charged in federal court in Los Angeles with conspiring to obstruct justice and to making false statements under oath. Lerach, 61, admits in a plea agreement with the U.S. Attorney's Office that he and other Milberg Weiss partners made payments to plaintiffs who were promised 10% of the attorneys' fees in the lawsuits. The payments were kept secret from judges in the cases, according to the plea agreement. Lerach will forfeit $7.8 million, pay a $250,000 fine and accept a one- to two-year prison sentence, but he's not required to cooperate with the investigation. He will be arraigned in the next few weeks, prosecutors said. In a statement, Lerach said, "I have always fought for my clients aggressively and vigorously in order to hold powerful corporations responsible when their actions harmed people. However, I regrettably crossed a line and pushed too far. For my actions, I apologize and accept full responsibility for my conduct." Lerach pioneered securities-fraud lawsuits, suing Apple, Enron and hundreds of other companies since the 1980s, winning billions in judgments and settlements for investors. FIND MORE STORIES IN: Justice \| Milberg Weiss \| David Bershad But corporations accused him of cranking out lawsuits with no merit, and venture capitalist John Doerr called him an "economic terrorist." In 1995, Congress passed a hotly debated litigation reform act that made it harder to file shareholders' lawsuits. Lerach's plea deal comes amid the Justice Department's ongoing, six-year investigation into Lerach's former law firm, Milberg Weiss. Last year, the firm and two former partners were indicted on bribery, fraud and perjury charges. The indictment alleged that the firm and former senior partners David Bershad and Steven Schulman paid millions of dollars in kickbacks to people for serving as plaintiffs in class-action lawsuits. Bershad pleaded guilty earlier this year to a conspiracy charge, while Schulman goes to trial in January. Lerach formed another law firm in San Diego two years ago called Coughlin Stoia Geller, but he resigned last month. Coughlin Stoia Geller said that plea deal "categorically, definitively and unequivocally confirms that this firm has no exposure or liability in the matter." Lerach's supporters defended him Tuesday. Jon Haber, CEO of the American Association for Justice, a trade group for trial lawyers, said, "Corporate America will try to exploit this in a cynical attempt to roll back consumer, pension fund and shareholder legal rights." Posted 15h 17m ago Updated 12h 13m ago usatoday.com

To: ravenseye who wrote (2823)	9/24/2007 6:38:17 PM
From: rrufff	Read Replies (1) \| Respond to of 5034

To: scion who wrote (100628) 9/24/2007 2:16:32 PM From: peter michaelson of 100632 Harary was a participant on Elgindy's chatroom. Can't deny there were some scammers in there. ============================================================ S.E.C. Charges Two with Securities Fraud in $4.4 Million Market Manipulation and Kickback Case Litigation Release No. 20293 / September 24, 2007 Securities and Exchange Commission v. Paul Harary and Douglas Zemsky, Civil Action No. 07-80875-CIV (S.D. Fla., Sept. 24, 2007) S.E.C. Charges Two with Securities Fraud in $4.4 Million Market Manipulation and Kickback Case Guilty Plea Entered in Parallel Criminal Case The Securities and Exchange Commission today filed a settled complaint against Florida residents Paul Harary, 43, and Douglas Zemsky, 44, for their involvement in an alleged $4.4 million market manipulation and kickback scheme that defrauded customers of a Boca Raton brokerage firm. The SEC complaint alleges that in 2004 and 2005: Harary and a Florida stockbroker defrauded the stockbroker's customers by acquiring control of two shell companies, creating an artificial market for those companies' common stock, and manipulating the price of that stock using pre-arranged matched orders. Another perpetrator, Zemsky, identified and purchased the shell companies and coordinated matched orders to start the trading in one of them at a pre-arranged, artificial price. The Florida stockbroker created the demand for the stock in the two firms by purchasing it for his firm's customers, while Harary controlled the supply of the unrestricted shares and sold them. Other investors, who purchased shares of one of the shell companies on the open market but who were not customers of the brokerage firm, also lost money because Harary manipulated the share price of that company's stock. Harary made over $4.4 million in proceeds on his sales of these stocks and then provided the Florida stockbroker over $1 million in kickbacks through a series of cash handoffs and checks. The customers of the Florida stockbroker were left with worthless shares of the shell companies and lost approximately $3.8 million. According to the complaint, the two shell companies were Secure Solutions Holdings, Inc. (SSLX) and American Financial Holdings, Inc. (AFHJ). Each traded on the over-the-counter market and was quoted on the Pink Sheets. Without admitting or denying the allegations in the complaint, Harary and Zemsky consented to the entry of final judgments: (1) permanently enjoining each from violating the antifraud and securities registration provisions of the federal securities laws; (2) imposing penny stock bars against each; (3) imposing an officer and director bar against Zemsky; and (4) directing Harary to pay approximately $4 million and Zemsky to pay approximately $97,000 in disgorgement and prejudgment interest. Previously, on July 15, 2005, the Commission issued an Order suspending trading in SSLX common stock for ten days because of questions about the accuracy of representations in SSLX's press releases concerning, among other things, the identity of the management and directors of the company and the status of its corporate organization. See Securities Exchange Act of 1934 Release No. 52037 (July 15, 2005). The U.S. Attorney for the District of Columbia simultaneously announced that Harary pleaded guilty to conspiracy to commit mail and wire fraud in a parallel criminal action brought in the United States District Court for the District of Columbia. See United States v. Harary, Crim. No. 07-Cr.-209 (EGS) (D.D.C.). The Commission acknowledges the assistance of the U.S. Attorney's Office for the District of Columbia, the Federal Bureau of Investigation, the United States Postal Inspection Service, NASD (now known as the Financial Industry Regulatory Authority), and the British Columbia Securities Commission. The Commission's investigation in this matter is ongoing. The Commission has published guidance for investors concerning investments in microcap stocks. See: sec.gov. SEC Complaint in this matter sec.gov