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To: Q. who wrote (46)	5/7/1999 9:52:00 AM
From: jjs64	Respond to of 1440

John G; I wish I could say I was surprised that Bua would associate with other criminals, but these crims never learn. Can't wait to see the debut of Beach Chair! Here's a little story on HTEH's Larry Stockett. I have boldfaced a passage that is essential reading for the ZSUN sheep as well.... California Entrepreneur Fined $50,000 By SEC Judge, Agency Says 3/31/99 19:30 Washington, March 31 (Bloomberg) -- A California entrepreneur known for his IPO Network television and radio shows was ordered to pay $50,000 for allegedly arranging secretly for a mutual fund to invest in public companies he controlled, regulators said. The U.S. Securities and Exchange Commission alleged Larry Stockett of Tiburon, California, failed to disclose agreements with Hudson Investors Fund Inc.'s advisers that gave him much control over how the fund's money was invested. An SEC administrative law judge ruled yesterday that Stockett intended to "gain control of the Hudson fund and use it to manipulate stock prices in companies in which he and his partners held an interest." G. Marvin Bober, the SEC administrative judge, ordered Stockett to pay a $50,000 fine and be barred from the securities industry, the commission said. Stockett, who runs Las Vegas-based U.S. Cement Co. and Grass Valley, California-based Brush Creek Mining and Development Inc., said he was ''shocked and stunned'' by the decision and will appeal the ruling to the full commission. "I did not recommend buying the stock, I didn't know they bought my stock and I never even spoke with them about my stock," Stockett said. He said he refused to sign an SEC settlement that would have let him avoid any fine ''because I didn't do anything wrong.'' SEC trial counsel Thomas Melton said Stockett has a history of securities violations that includes disciplinary actions from Oregon and California. "He committed remarkably egregious violations and we're pleased with the decision to bar him from the industry," Melton said. In its administrative case filed in August 1997, the SEC also charged the Clifton, New Jersey-based fund and Javed Anver Latef, Hudson's president, with failing to disclose agreements with Stockett. Bober ordered that Latef and the fund would be subject to stiffer sanctions for any future violations and barred Latef from associating with an investment adviser or investment company for three months. A New York lawyer for Latef and the fund had no comment. Bober said in his ruling that Latef was responsible for providing ''full and fair'' disclosure to fund shareholders ''and was reckless in not doing so.'' The SEC alleged that by June 1997 more than half Hudson Fund's portfolio was invested in securities recommended by Stockett or companies he ran. The fund, when it was ranked by Lipper Mutual Funds Quarterly as the top-performing growth fund in the first quarter of 1997, had 16 percent of its $350,000 in assets invested in shares of Hightec Inc., a small company Stockett controlled. Latef formed Hudson with another Pakistani investor in 1994 as an ethically responsible fund, following Muslim guidelines, the SEC said. Hudson, which Melton said ''is still a struggling fund,'' will have to be managed by someone other than Latef during the three months of his suspension. The SEC said thousands of people have listened to Stockett's radio program, watched his television show, and attended his seminars and workshops on how to invest in IPOs. Buyer Beware!