Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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Microcap & Penny Stocks : ADGI - American Diversified Group -- Ignore unavailable to you. Want to Upgrade?

To: Urlman who wrote (7185)	9/15/1998 8:36:00 AM
From: Dean	Respond to of 9569

Good Morning All Sure has been quite lately. Guess we need some more news to get this thing going. Wish the Doc would put news out in the morning. You would think we were located in California with news always coming after lunch. Seems like months since we have heard anything about our drug business. Another big round of news would be GREAT ! Hanging tuff Go ADGI

To: Urlman who wrote (7185)	9/15/1998 1:12:00 PM
From: ronayre	Read Replies (1) \| Respond to of 9569

A few might want to ponder this news All OF SI Very Quiet: Could this be why? In an attempt to fight stock fraud on the Internet, the Securities and Exchange Commission in Washington, D.C. is training a group of cybercops to look for scams and illegal trading activity. Little over a month after it announced the formation of the Office of Internet Enforcement, SEC officials have completed training more than 100 investigators to stop stock scams and price manipulations that leave unsuspecting investors with little or no money in their accounts. Called the "Cyberforce," these inspectors periodically surf the Net for leads on companies and individuals suspected of illegally trying to influence the price of stocks. With market volatility at its highest point in recent years, SEC officials said the timing is perfect for rogue brokers and stock issuers to aggressively use the Internet to seek individuals willing to invest money with a promise of a big return. "Fraud on the Internet can be passed very efficiently," says John Reed Stark, SEC's top cybercop. "We are continuously scanning message boards, chat rooms and other postings on the Net to get a break on these people." The SEC has filed charges in about 35 cases of alleged securities cyberfraud, which have resulted in millions of dollars of losses for investors. About 130 complaints roll into the SEC's enforcement complaint center every day from people asking the agency to investigate companies, individuals and, sometimes, fellow investors. "We already have cases open on almost 30 percent of those complaints," Stark says. In recent weeks, SEC investigators have teamed with other law enforcement agencies such as the FBI to build criminal cases against companies and individuals. So far, SEC officials have seen several cases of classic "pump and dump" frauds, where a group of individuals pump a stock relentlessly to drive it up and then sell it all at the same time, taking home hefty portions of inflated profits. Officials also have seen an increase in pyramid and ponzi schemes through the Internet. William McLucas, a Washington attorney who until recently headed SEC's enforcement unit, says it is not surprising that the SEC often sees itself behind the curve in investigating Internet stock fraud. "By definition, law enforcement is reactive. Investigators react to illegal deals and then try to catch the people behind the deals," McLucas says. "By beefing up its enforcement activities, SEC may actually be able to stop some of these crimes before they happen." But for now, there is no shortage of what many call "suspect stocks." A quick scan of Silicon Investor, one of the Internet sites dedicated to technology investors, found messages from 122 individuals who wanted the SEC to investigate stocks for alleged price manipulation and illegal touting of registered securities. And there are as many as 25 sites on the Internet that accept complaints about Internet-related investing.