To: william Velmer who wrote (2966 ) 9/29/1998 5:50:00 PM From: Mark B. Martell, CCM Read Replies (2) | Respond to of 4230
Mr. Velmer, Thanks for taking some of your precious time in discussing these matters with our board. I would like to pose a few questions to you sir. I would like to have a better understanding about how your newsletter is beneficial to me, a potential subscriber. When you were contacted by the SEC in this case of investigating internet newsletter schemes, did you feel it incumbent upon yourself to disclose the SEC's investigation in your "Sell" recommendation to your newsletter subscribers? Wouldn't it have been, from a legal point of you, more appropriate to simply recommend that your subscribers sell any remaining position in JAWS without giving out that detail? You could have simply pointed to the lack of SEC filing as the reason for your recommendation. Surely you are not a stupid man. I would surmise that a man subject to the personal/business risks of a company such as yours has a law firm on retainer that reviews your newsletter in advance of publication. Is this what your attorney(s) felt was an appropriate response? I ask this because, as a prospective subscriber to your service, I want to understand the integrity of the man behind the material. Another question for you sir: It has been purported by a Mr. R.J. Monski that you and he have spoken directly regarding this matter. Could you relay to us the nature of these discussions and your impressions of this gentleman? That would go a long way to helping me, a potential subscriber, understand your willingness to have private conversations with subscibers and non-subscribers alike. Mr. Monski has had some choice words about SA Advisory and other internet newsletters (which have been accused of arousing interest in a stock after taking a position in it "pump", while selling the stock before recommending it be sold "dump"). Apparently Mr. Monski believes that you and he share a special inside knowledge of Great White Marine as a result of this investigation. As I'm sure you are aware, the company has been quoted as stating that they have been investigating Mr. Monski himself and provided this work product to the SEC. I just want to understand, as a potential subscriber, your willingness to hold professional discussions with questionable individuals. Finally, I would like to know the answer to one question: What is your impression of a possible large short position on this stock? If you were to recommend selling this stock, as you have, then you must believe that the short position is non-existent and that the company has been fraudulently flooding the market with shares. In fact, your sell recommendation states that the SEC informed you directly that this was the reason for investigating JAWS. Was this really meant to be your opinion about the cause for the investigation as opposed to an official SEC comment regarding the investigation? As a potential subscriber to your newsletter, I would like to make sure I can distinguish between your opinions and stated fact. Again, thanks for your time. Mark