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.

Biotech / Medical : Electro-Optical Systems Corp. (EOSC) -- Ignore unavailable to you. Want to Upgrade?

To: Ken Chapman who wrote (117)	3/13/1998 7:31:00 PM
From: Bill Jones	Read Replies (1) \| Respond to of 242

SEC Sues Electro-Optical Systems, 12 Others, Claims Manipulation Dow Jones Online News, Friday, March 13, 1998 at 18:26 WASHINGTON -(Dow Jones)- Electro-Optical Systems Corp. and 12 other individuals and companies were sued by the Securities and Exchange Commission Friday for their alleged role in manipulating the share price of the Stow, Mass., company, and reaping $5 million in profit. The SEC's suit, filed in U.S. District Court in New York City and made public after the close of trading, alleged that the defendants had been conducting a fraudulent scheme to create a controlled market for Electro-Optical's shares (EOSC) to artificially inflate the share's price, which they sold to unsuspecting investors, including many purchasing over the Internet. The court has ordered the defendants to immediately cease their frauduent activities. It froze their assets pending further litigation, the SEC said. The defendants, the SEC alleged, sold unregistered and restricted shares of Electro-Optical, purchased small quantities of Electro-Optical's shares at above-market prices to inflate that price and issued a false statement about the company's only potential product, a fingerprint device. As a result, the company's share price rose from about 25 cents to over $5 per share in one day, a price the defendants managed to maintain for several months through control of the supply of shares and issuance of misleading information about the company and its potential product, the SEC alleged. To date the defendants have made at least $5 million in profits, the SEC said. As of Friday, the SEC has ordered a suspension of trading in the company's shares through March 26. The suspension was brought about by questions concerning the accuracy of statements and material omissions regarding, among other things, viability of the company's product, customer interest in purchasing the product and the trading and true value of the company's shares. The stock closed trading Friday up 50 cents to $3.593, or 16%, on 102,000 shares traded. "The SEC chose to act unilaterally with the application to the court and the court has not had the opportunity to hear both sides of the story," said attorney Harold Ruvoldt of New York's Fishbein, Bidillo, Wagner & Harding, representing Cavanagh and U.S. Milestones. Ruvoldt said, "My clients have not participated in any scheme to artificially inflate the price of this or any other stock." Attorneys for the other defendants could not be immediately reached for comment. Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.

To: Ken Chapman who wrote (117)	3/13/1998 7:34:00 PM
From: Bill Jones	Read Replies (1) \| Respond to of 242

Can you say IDID? Judge orders company, individuals to stop alleged stock fraud WASHINGTON (AP) - A federal judge in New York City on Friday ordered Electro-Optical Systems Corp. and several individuals and companies to stop selling the company's stock after federal regulators sued them for allegedly manipulating the shares. The Securities and Exchange Commission alleged in a civil lawsuit that the defendants created a controlled market for the company's stock, artificially inflating its price and selling shares to unsuspecting investors - including many small investors buying shares over the Internet. Electro-Optical Systems is said to sell fingerprinting devices. The defendants have fraudulently made at least $5 million on the sales, the SEC said. It said the company's stock price artificially rose in one day from around 25 cents to 50 cents to more than $5 a share - a price the defendants allegedly maintained for several months by controlling the supply of the stock and issuing false information about the company. Judge Denise L. Cote, granting a request by the SEC in an emergency civil lawsuit, also froze the defendants' assets pending resolution of the case. A hearing was set for March 25. In addition, the SEC suspended for 10 days trading in the shares of Electro-Optical Systems, based in Stow, Mass., because of questions about the accuracy of statements it filed with regulators. The trading halt will continue through 11:59 p.m. EST on March 26. The stock is traded in the over-the-counter market. The other defendants included Thomas Edward Cavanagh, George Chachas, Thomas Brooksbank, William Levy, Thomas Hantges, Cosimo Tacopino and the companies U.S. Milestone, Optimum Fund, Agira Trading, Customer Safety, Cambiares and Construcciones Solariegas. Officials of Electro-Optical didn't immediately return a telephone call seeking comment. An attorney for Cavanagh, Harold Ruvoldt, said he hadn't yet seen the full text of the SEC's complaint and therefore could not comment specifically. He said he would present his client's case on March 20. Copyright 1998 Associated Press. All rights reserved.

To: Ken Chapman who wrote (117)	3/14/1998 2:00:00 AM
From: brad greene	Read Replies (2) \| Respond to of 242

Ken, The long haul just became a short trip. Just yesterday, J. Saf, from the Identix thread posted you this..... To: Ken Chapman (106 ) From: J. Saf Thursday, Mar 12 1998 1:58PM EST Reply # of 119 Dead Cat Bounce? I don't know why the stock bounced today. Could be traders. Could be people averaging down. Now is the time to quickly do your homework and determine if you are to stay or go. END I hope many here read his post and acted.......including yourself. There are several more EOSCs out there. They are hurting the biometric industry. If you believe in the future of biometrics...check out IDX. Don't mess around with scams like this. bg