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Microcap & Penny Stocks : Rocky Mountain Int'l (OTC:RMIL former OTC:OVIS) -- Ignore unavailable to you. Want to Upgrade?

To: Pugs who wrote (48658)	6/24/1998 3:13:00 PM
From: Riley G	Read Replies (3) \| Respond to of 55532

>Date: Wed, 24 Jun 1998 14:12:53 -0500 >To: Riley G >Subject: Re:shorters pay! > >More Scumbag Shorters Get Their Due!!! > > >Wednesday June 24, 1:22 pm Eastern Time > >NASD Regulation expels Maidstone, fines execs > >WASHINGTON, June 24 (Reuters) - NASD Regulation Inc. said Tuesday it expelled >Maidstone Financial Inc. from the National Association of Securities >Dealers and fined four individuals a total of $14.8 million. > >NASD Regulation said in a statement that two Maidstone senior executives and two >more senior executives of HGI Inc., formerly known as the Harriman Group, >were sanctioned in connection with fraud in the underwriting of three securities. > >Maidstone and the four individuals neither admitted nor denied NASD Regulation's >findings, it said. > >NASD Regulation filed a complaint in December alleging that HGI and Maidstone >made more than $16.2 million in illicit profits, defrauding investors in the >process, while serving as underwriters of three securities. > >The securities were Sims Communications Inc. (SIMS - news), Natural Health Trends >Corp. (NHTCD - news) and International Cutlery Ltd. (ICUT - news). > >Illegal profits were made by purchasing stock at below-market prices to cover >large short positions each firm had intentionally created in their inventories, >NASD >Regulation said. > >In each offering, the firms purchased the covering shares from shareholders who >had received their securities prior to the initial public offerings through >private >placements and bridge financing arrangements. > >Nearly $1 million has been deposited by the four executives into an escrow >account for disbursement to hundreds of defrauded investors from 15 states and >three >countries, NASD Regulation said. > >Marshall Bernstein, Maidstone's chief executive officer and chairman, was barred >from working in the securities industry, fined $1.9 million, and censured. Its >president, Stuart Litman, was also barred, fined $1.9 million and censured. > >HGI's vice president and director, Brian Douglas Scanlon, was barred, fined $5 >million, and censured. Secretary and chairman Mark Arthur Hanna was barred, >fined $5 million and censured. > >Maidstone was fined $1 million and censured. The case against HGI remains >pending, NASD Regulation said. > >Investors entitled to restitution will be contacted in writing by a consultant >hired by Maidstone and approved by NASD Regulation. > >NASD Regulation, a subsidiary of the National Association of Securities Dealers >Inc., oversees all U.S. stockbrokers and brokerage firms.