To: Ken W who wrote (3496 ) 1/4/1999 8:39:00 AM From: LTK007 Respond to of 4761
Here is some BEEF! So Ken if you actually wish to read---here it is--------SEC vs.Scudiero and involves First Liberty ,an IFLY backer << In early 1996, Scudiero set up a brokerage operation in New York City associated with First Liberty Investment Group (First Liberty), a registered broker-dealer. Because Scudiero had been barred from the securities industry as a result of his criminal conviction for drug dealing, Scudiero arranged for defendant Eric Nicholsberg to act as Scudiero's nominee at the First Liberty branch operation. Thereafter, Scudiero hired defendants Dominick Chieco, Craig Marino, Mat Matles, and Raymond Selvaduri as brokers at his First Liberty branch and paid them more than $100,000 in cash bribes in exchange for selling Interactive stock to retail customers. Defendant Frank Hartmann, at Scudiero's direction, set up various bank and brokerage accounts in his name that Scudiero used to sell Interactive stock and pay cash bribes to brokers. Scudiero determined the price of Interactive stock and directed the market maker at another registered broker-dealer to enter quotes for the stock and to purchase the stock to fill customer orders with Interactive shares held in a brokerage account controlled by Scudiero. Nicholsberg, Chieco, Marino, Matles, and Selvaduri sold over 115,000 shares of Interactive to unsuspecting retail customers for more than $1 million. In addition to retailing Interactive through his First Liberty branch, Scudiero also bribed defendants Michael Dreitlein, Anthony Giambrone, and Ian Hosang, who were employed at other broker-dealers, to sell Interactive stock to retail customers. Dreitlein and Giambrone sold approximately 95,000 Interactive shares to their retail customers for approximately $900,000. Hosang sold over 100,000 shares to his customers at a cost of approximately $800,000.>>