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Microcap & Penny Stocks : Tokyo Joe's Cafe / Anything goes -- Ignore unavailable to you. Want to Upgrade?

To: Jim Court who wrote (30414)	8/11/1998 8:53:00 PM
From: Big Dog	Respond to of 34592

I haven't bought in yet. Am thinking about it though. One of those, take a chance and it could pay off. BIG DOG

To: Jim Court who wrote (30414)	8/11/1998 9:51:00 PM
From: MoneyMade	Read Replies (2) \| Respond to of 34592

I'm tired of the BS: SEC probes Internet stock case WASHINGTON - The Securities and Exchange Commission added new details to an investigation of a $12 million stock manipulation scheme in which an Internet stock promoter is accused of fraud for making rosy company forecasts, then selling stocks when they gained on the news. The SEC on Thursday amended its complaint, originally filed Nov. 7, against Systems of Excellence, a maker of video teleconference equipment, with offices in McLean, Va., and Coral Gables, Fla. Charles O. Huttoe, former Systems of Excellence chairman and chief executive officer, is accused of manipulating the market by issuing false, favorable press releases about the company, then selling his shares into an inflated market. He also is accused of secretly distributing millions of the shares to his mother, wife and niece, as well as to corporations he controlled. In the revised lawsuit, the SEC said it uncovered an additional $2.4 million raised in alleged market manipulation, bringing the total to $12 million in illegal profits. The SEC said Huttoe "engaged in a massive cover-up," which involved distributing $8.3 million of the illegal profits to 21 individuals and companies. The original complaint accused SGA Goldstar Inc., a Nashville, Tenn.-based publisher of an Internet stock newsletter, of writing about Systems of Excellence "on nearly 100 occasions, almost always in a highly promotional tone" in its newsletter, "SGA Goldstar Whisper Stocks." SGA Goldstar's owner, Theodore R. Melcher Jr., and the company's other employee, Shannon B. Terry, received Systems of Excellence stock and then began selling the shares as the price rose due to investor interest sparked by their newsletter, the SEC said. Some of the stock also was given to two companies controlled by the men, Alpha Securities and Dunbar Holdings Inc. In addition, the SEC charged SGA Goldstar received stock from nine other companies and the two executives "sold stock in several of these companies while SGA Goldstar was touting the companies in its newsletter." Terry is accused of reaping $347,000 from sales of stock in seven companies while Melcher unloaded shares of two companies, which raised $73,000. The SEC charged that Terry sold 20,000 shares of America Bio Medica Corp. stock in six transactions over two months during a time when SGA "touted the company on 23 separate occasions." Michael R. Koblenz, attorney for Melcher and SGA Goldstar, said he hadn't reviewed the amended lawsuit, but he intends to fight the charges. Terry's attorney couldn't be reached for comment. Koblenz said the company warns its readers that SGA Goldstar isn't an investment adviser and that investors buy stocks at their own risk. SGA's warning also says: "Personnel associated with SGA may own shares in the companies mentioned herein or may act as consultants thereto." Erich T. Schwartz, a senior SEC attorney handling that case, said this disclaimer doesn't go far enough to warn readers of a conflict of interest. Under federal securities laws, "they have to disclose the source and amount of compensation received. And they didn't do it here," he said. Systems of Excellence issued a statement saying the new management "applauds the SEC's action" and said none of the people named in the SEC case remain with the company. Systems of Excellence's new management is trying to complete new video conferencing products and said the "SEC's latest action can only help new management in its efforts." Huttoe's attorney declined comment. By The Associated Press