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Biotech / Medical : Chromatics Color Sciences International. Inc; CCSI -- Ignore unavailable to you. Want to Upgrade?

To: jpbrody who wrote (2980)	6/12/1998 2:38:00 AM
From: Quad Sevens	Respond to of 5736

Just read the BW story. Schonberg used to work for Omega, a well-known hedge fund. While there, he became enamored of CCSI, and bought some for Omega. For this service, he was later invited to participate in a PP, where he was given 20,000 sh of CCSI at 2.50/sh, a 50% discount to the public market for the shares. Then he went to Dreyfus, still with his 20k shares, and bought, as we know, a bunch of CCSI for those two funds. This did not violate Dreyfus rules, but it wasn't disclosed in the prospectuses either. Schonberg was relieved of his principal duties, and the new fund manager at Dreyfus has cut CCSI to 780,000 shares--about half of what it was before. Now the stock is in the toilet, thanks to Asensio and Dreyfus dumping. The tenor of the article is: Is Dreyfus screwing its own fund investors? The article makes the whole thing sound shady, but it seems to me that Schonberg, despite his abysmal record, had done well with CCSI for his funds--until Asensio and Dreyfus's own dumping. That's what I see ... Wade