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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: J.S. who wrote (10064)	2/25/1999 9:33:00 PM
From: blokker	Read Replies (1) \| Respond to of 56532

does anyone here know how to change SI password?

To: J.S. who wrote (10064)	2/25/1999 9:43:00 PM
From: MMK	Read Replies (1) \| Respond to of 56532

All: You need to read this...amazing. I had no idea about any of this. Here is the SEC link for the full article today - naming names: sec.gov MMK News Technology Headlines Looking for a domain name? See what's available! Thursday February 25 1:05 PM ET SEC Accuses 13 Of Fraud In Latest Web Sweep By Peter Ramjug WASHINGTON (Reuters) - Federal regulators announced Thursday the filing of four enforcement cases against 13 people who allegedly used the Internet to commit securities fraud. It was the Securities and Exchange Commission's second sweep of the Internet since October for alleged fraud and brings to 27 the number of such cases filed to date, involving 57 people and companies. The 13 individuals accused in the latest sweep illegally touted more than 56 small, thinly traded companies known as microcaps either by making false claims about the companies or by failing to disclose properly the nature of the compensation they got from the hyped company, the SEC said. The alleged touters, through junk e-mail, message boards and web sites, claimed they were providing unbiased opinions in their recommendations while at the same time receiving more than $450,000 cash and about 2.7 million stock shares or options for their services, the commission said. In one case, the alleged fraudsters sold their stock or exercised their options immediately following their recommendations, a practice commonly known as scalping. In another matter, the SEC alleged that Scott Flynn, convicted in September 1998 of securities and wire fraud in an unrelated case, and his Minnesota investor relations company, Strategic Network Development Inc, published profiles of 10 publicly traded companies on the stockprofiles.com Web site. Hastings Communications, which owns and publishes the site, has already settled an SEC anti-touting charge without admitting or denying it. Flynn and his company received over $180,000 in cash and 322,500 shares of stock from the companies but did not fully disclose it, said the SEC. They also ''spammed,'' or sent out mass, unsolicited e-mail messages, to half a million potential investors. Flynn's Minneapolis lawyer, Travis Snider, did not immediately return a telephone call seeking comment. Richard Walker, the chief enforcement official at the SEC, said the cases underscore the importance that his agency is placing on Internet fraudsters, and how necessary it is for people who do tout stocks to properly disclose what they're getting in return. ''The SEC continues to be vigilant in its efforts to stamp out fraud on the Internet,'' Walker said. While it is not illegal to hype stocks, it is unlawful not to disclose the nature and amount of the compensation, and it must be ''easily accessible, not buried somewhere on the web site,'' Walker added. He said his agency has 120 staff members who are trained to screen the Internet for fraud, though not all of them do it full time. In addition, the SEC, in its fiscal 2000 budget estimate of $360 million, asked for $6 million to upgrade its computers. Walker said the SEC has ''access to good equipment for purposes of doing the (Internet) surveillance that we need,'' but the technology ''changes so rapidly and so quickly that we're always going to be in need of upgrading.''