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To: MeDroogies who wrote (756)	5/3/1998 11:02:00 PM
From: James Mitchell	Respond to of 2278

Ex-Comparator staffer says FBI talked to her MARKETS: She says she was questioned about possible stock fraud. March 11, 1998 By LIZ PULLIAM The Orange County Register A former employee at scandal-ridden Comparator Systems Corp. said the FBI interviewed her last month about possible stock fraud at the fingerprint-identification company. Former Comparator secretary Kay Churchill, who has changed her name to Summer Wolf, said Tuesday that the FBI questioned her about meetings between Comparator and La Jolla Capital Financial Corp., a San Diego brokerage firm that specialized in Comparator stock. Wolf said Comparator and La Jolla officials discussed ways to boost the stock price at the meetings, which preceded Comparator's record-breaking run-up in 1996. Calls to Comparator and La Jolla were not returned. FBI spokesman Gary Morley said he could neither confirm nor deny that an investigation was in progress. Comparator set trading volume records in 1996 when its stock suddenly soared from 3 cents to nearly $2 before regulators halted trading. Comparator later settled SEC charges that it had inflated the value of its assets to retain its Nasdaq listing and that it defrauded investors of $2.9 million. The SEC relied on Wolf's testimony and documents in its case against Comparator. In an unrelated case, La Jolla Capital and several of its principals were fined nearly $1 million last year for sales-practice abuses, and the brokerage was banned from selling penny stocks. A National Association of Securities Dealers panel found that La Jolla violated investor-protection laws in 140 transactions that predate the Comparator scandal. In its most recent SEC filing in November, Comparator officials said the company was dormant and had less than $2,500. Comparator has no product to market and has said it expects to lose title to its fingerprint-identification technology unless it can raise $500,000. The company has filed no reports since November. Its official address is that of a real estate leasing office in Newport Beach. Phone calls to Comparator are fielded by an answering service. Earlier this year, Congress' General Accounting Office criticized the NASD and the Securities and Exchange Commission for allowing Comparator to trade at all. The GAO said the NASD failed to investigate Comparator's assets and faulted the SEC for waiting 11 years to investigate problems with Nasdaq's listing requirements. The GAO released the report Feb. 6, the same day Wolf, her husband and her attorney met with the FBI. Wolf said the FBI also was interested in the whereabouts of Wayne Marple, a Comparator employee who often spoke with investors about the company. Marple was cited in several Internet chat messages as touting the company's prospects. Marple could not be reached for comment. NASD and SEC officials have said they are concerned about the proliferation of stock-manipulation scams conducted on the Internet. Comparator continues to trade informally among brokers, with tens of thousands of shares trading hands daily, usually at less than 1 cent per share. Investors continue to stud computer bulletin boards with questions about the company's prospects. "Something is up - it still trades," one user posted recently on an America Online stock forum. "The concept is worth millions if the machine works!"

To: MeDroogies who wrote (756)	5/3/1998 11:09:00 PM
From: James Mitchell	Read Replies (1) \| Respond to of 2278

I think the big question now is how much is La Jolla involved. Are they the only one's who handle the stock, are they limited to just selling shares, etc., etc., etc. I'm not trying to shake anybody down. I wish none of this had come up for Monday, or the week for that matter, because I know the stock is /was primed for a move, and I sure don't have the expertise/equipment to daytrade a penny stock. I was/am hoping for a solid move up. Don't know what tomorow will bring.