Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Anthony@Pacific who wrote (23758)	3/24/1999 2:33:00 PM
From: If only I'd held	Read Replies (1) \| Respond to of 122087

Anybody know this guy??? Pacific Cortez Securities censured WASHINGTON, March 24 (UPI) _ NASD Regulation Inc. has censured and barred San Diego-based Pacific Cortez Securities, formerly known as La Jolla Capital Corp., from selling penny stocks. In addition, three of its senior officials have been sanctioned for violating federal securities laws governing the trading of penny stocks. Penny stocks are unlisted securities that trade over-the-counter and are typically priced under $5 per share. The decision was issued today by NASD Regulation's National Adjudicatory Council (NAC) following an appeal of an earlier decision by its Los Angeles District Business Conduct Committee (DBCC). The NAC upheld the earlier decision that Pacific Cortez President Harold B.J. Gallison, and Branch Manager Christopher S. Knight be permanently barred from the penny stock industry for participating in a 17 month-long scheme promoting unlawful sales of penny stocks to unsuspecting investors. They were also ordered to pay fines of more than $500,000. Separately, the firm and Gallison are jointly responsible for repaying more than 100 investors throughout the country almost $400,000. The NAC also found that Pacific Cortez Securities implemented a system to circumvent the Securities and Exchange Commission's (SEC) penny stock rules designed to ensure that investors receive honest and candid information about risk disclosure and suitability issues before they invest. The firm had investors sign a misleading document that purported to exempt the transactions from the rules' requirements. The letters were portrayed to investors as a formality, and in some cases investors' signatures were forged. The sales practice abuses at Pacific Cortez were uncovered after a lengthy investigation by NASD Regulation's District Offices in Los Angeles, San Francisco, and Denver. The NAC found that from January 1994 through May 1995, Pacific Cortez and certain of its senior officials circumvented investor protection laws in approximately 140 transactions involving 15 separate securities. All of the transactions involve penny stocks. The violations occurred at the firm's offices in San Diego, CA; New York, NY; Las Vegas, NV; and Bethesda, MD. _- Copyright 1999 by United Press International. All rights reserved. _- News provided by COMTEX.