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Microcap & Penny Stocks : Amazon Natural (AZNT) -- Ignore unavailable to you. Want to Upgrade?

To: Rico Staris who wrote (6900)	9/24/1998 4:03:00 PM
From: Rico Staris	Read Replies (1) \| Respond to of 26163

JB OXFORD IN TROUBLE AGAIN WITH THE SEC. What else is new? LOL JB Oxford is one of the shorts named in the AZNT lawsuit. biz.yahoo.com NASD Regulation Continues Microcap Market Focus; Complaints Name Brokers At Greenway Capital and Kensington Wells WASHINGTON, Sept. 23 /PRNewswire/ -- NASD Regulation, Inc., today announced that it has filed complaints in two microcap fraud cases. A total of 23 brokers at Greenway Capital and Kensington Wells, Inc., were named in the two separate complaints. In both cases, NASD Regulation's complaints allege a series of fraudulent practices and the extensive use of abusive and high-pressure ''boiler room'' sales tactics to sell low-priced speculative securities to retail investors. Greenway Capital Corp. At Greenway Capital Corp., a now defunct New York, NY, brokerage firm that was also known as Cortlandt Capital Corp., 11 brokers -- including the firm's President, John J. Margiotta; and one of its owners, Fred R. Luthy -- were charged with a variety of sales practice and supervisory violations. Also named in the complaint are: Alan J. Mandel, Jason A. Prussing, James J. Crimi, Jeffrey S. Geoghegan, Javier Hernandez, James Morrill, Joseph A. Ricci, Cosmo Scali, and Joseph S. Tarulli. NASD Regulation charged seven of the 11 brokers with fraud in connection with the April 1996 underwriting of Dialysis Corporation of America (Nasdaq:DCAI - news; DCA). Based on interviews with investors across the country, and after investigating customer complaints against the firm and its brokers, NASD Regulation uncovered evidence of numerous instances of unauthorized trading, misrepresentations, and the use of illegal boiler room sales tactics. For example, many investors complained that Greenway's brokers threatened to cancel their purchases of the initial public offering (IPO) if the investors refused to make additional investments in DCA. The complaint also charges that many investors had their purchases canceled when they refused to buy additional DCA shares in the aftermarket. In addition, NASD Regulation charged that the owners of certain favored accounts -- such as former Greenway brokers, a relative of a current Greenway broker, and a former girlfriend of a Greenway broker -- were permitted to purchase securities (both stock and warrants) in the IPO, and then sell them back to Greenway for a quick profit. These customers were not required to purchase DCA shares in the aftermarket. The complaint alleges that in the DCA offering Greenway used young, inexperienced brokers to sell low-priced, highly speculative securities to retail customers through boiler room sales tactics such as: trading without customer authorization; making material misrepresentations including making baseless price predictions; omitting material information; guaranteeing future stock performance; failing to execute customer orders; and not executing orders promptly. NASD Regulation also charged six of the 11 brokers with unauthorized trading in connection with Greenway's dealings in several ''house stocks,'' including: Hariston Corporation [OTC BB:HRSNF - news], Consolidated Western & Pacific Resources, Smartel Communications Corp., and J.B. Oxford Holdings, Inc. House stocks are generally viewed as those that have been underwritten by a single brokerage firm in circumstances where that firm is in control of much of the company's outstanding shares and dominates the aftermarket trading. The complaint alleges a series of violations with respect to these stocks, including: unauthorized trading; material misrepresentations and omissions; baseless price predictions; falsifying firm records; failing to follow customer instructions to sell securities; misusing customer funds; and violating state Blue Sky laws.