To: Financial Internet Group who wrote (1557 ) 3/17/1998 8:11:00 PM From: David Goldstein Respond to of 3967
Hey Joe, Have you seen this????? I guess its probably not a good idea to get xecom back on this show anytime soon. Then again what the hell do I know. In any event, I thought you might be interested in seeing this. Tuesday March 17, 6:50 pm Eastern Time SEC sues radio talk show host for taking fees NEW YORK, March 17 (Reuters) - The Securities and Exchange Commission said it accused a radio talk show host and his company Tuesday of taking stock or cash from companies in return for promoting the companies on the program. Charged with violation of federal securities laws was Michael Cardascia, 32, host of the syndicated program ''Inside Wall Street,'' which airs three times weekly. Also named in the suit filed in a Manhattan federal court was Strathmore Equity Services Inc, his New York-based company, which provides public relations services to public companies through the show. They were charged under the anti-touting provision of the federal Securities Act of 1933, which requires a person getting paid to promote a stock to disclose the fact that a fee was paid for such promotion and the amount. In its lawsuit, the SEC alleged that while Cardascia announced at the end of each show that ''some guests may have paid a fee,'' they failed to disclosed that a fee was paid by each of the companies featured on the show. Cardascia, a resident of Manhasset, N.Y., could not be reached Tuesday for comment. The SEC said the defendants also failed to disclose that on at least three occasions they received fees from companies they featured in a newsletter, also called Inside Wall Street, which they published. Cardascia usually features three public companies in a show, interviewing a representative of each. After the interview, he gives his own views on why the company's stock is worth buying and listeners are given a toll-free telephone number to call for more information. The SEC, citing examples, said that in the Christmas show in 1996, the defendants received 50,000 shares from Corporate Visions Inc, 18,259 shares from Integrated Health, and 7,800 shares from Kafus Capital for being featured in the program. In a show on January 20, 1997, the defendants received 71,111 shares from Riverdale Winery of New York Inc and 10,000 shares from Internet Infinity Inc [OTC BB:ITNF - news] in exchange for the companies' promotion, the SEC added. The SEC said it is seeking civil penalties and an order to stop Cardascia and his company from further committing the alleged violations. More Quotes and News: Internet Infinity Inc (OTC BB:ITNF - news) Related News Categories: US Market News Help Copyright c 1998 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon See our Important Disclaimers and Legal Information. Questions or Comments?