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Microcap & Penny Stocks : ASK THE "FUEL" -- Ignore unavailable to you. Want to Upgrade?

To: TOPFUEL who wrote (234)	2/27/1999 2:36:00 PM
From: TOPFUEL	Read Replies (2) \| Respond to of 564

SEC Continues Internet Fraud Crackdown FOR IMMEDIATE RELEASE 99-24 Agency Files Four More Cases Against Purveyors of Fraudulent Spam, Online Newsletters, Message Board Postings and Websites in its Ongoing Effort to Clean Up the Internet Washington, D.C., February 25, 1999 – Continuing its nationwide sweep targeting Internet fraud, the Securities and Exchange Commission today announced four enforcement actions against 13 individuals and companies across the country, including one current and two former stock brokers, for committing fraud over the Internet and deceiving investors around the world. The filing of these cases follows the SEC's October 28, 1998 Internet Sweep, the first orchestrated nationwide operation by the SEC to combat Internet fraud. These new sweep cases involve a range of illicit Internet conduct including fraudulent spams (Internet junk mail), online newsletters, message board postings and websites. The allegations include violations of the anti- fraud provisions and the anti-touting provisions of the federal securities laws. The authors of the spams, online newsletters, message board postings and Web sites unlawfully touted more than 56 public companies, by either making misrepresentations about the companies or failing to disclose adequately the nature, source and amount of compensation paid by the touted company. The alleged creators of the fraudulent Internet touts purportedly provided unbiased opinions in their recommendations, while at the same time receiving more than $450,000 in cash and approximately 2.7 million stock shares and options for their services. In one instance, the fraudsters sold their stock or exercised their options immediately following their recommendations, a deceptive practice commonly referred to as "scalping." Richard H. Walker, Director of the SEC's Enforcement Division, said, "Today we have good and bad news to report and a reminder to impart. The good news for investors is that the disclosure of information they need has improved dramatically since our first Internet fraud sweep in October. The bad news for cyber-scammers is that the SEC continues to be vigilant in its efforts to stamp out fraud on the Internet. If you're trying to cheat investors on the Internet, we are watching and we will catch you. Finally, a blunt reminder to people who are paid to tout stocks on the Internet: You must disclose the nature and amount of your compensation and it must be easily accessible, not buried somewhere on the website." Details of Today's Four Cases Pump and Dump – In a classic microcap scam involving the securities of Interactive MultiMedia Publishers, Inc. (IMP) of Akron, Ohio, the SEC alleges that a corporate insider, P. Joseph Vertucci, and a stockbroker, Bruce Straughn, conducted a "pump and dump" market manipulation scheme. The SEC alleges that: Straughn and Vertucci sold to the public essentially worthless securities of IMP, a software development company, which were not registered with the Commission as required by federal securities laws. They also arranged for publications to tout IMP on the Internet and elsewhere, for which they paid the touters undisclosed compensation in the form of cheap or free stock. When the stock's price rose in the wake of these touts, Vertucci, Straughn and the touters all sold their shares at a profit, a deceptive practice known as "scalping." Subsequently, the stock collapsed and the company ceased operations. The SEC has sued the various participants involved for violations ranging from the fraudulent sale of securities to the fraudulent touting of securities and seeks remedies that include federal injunctions, civil penalties and disgorgement. (SEC v. Vertucci, et al.; Contact: Richard Sauer (202) 942-4777);