ELLIOT SPITZER NEEDS HELP IN UNCOVERING THE PAID FRAUDULENT SCUM THAT CALL THEMSELVES ANALYSTS. THIS THREAD IS DEDICATED TO RAYMOND DIRKS. ALL INFORMATION POSTED TO BE FORWARDED TO ELLIOT SPITZER AND THE NASDAQ WHICH IN THE CASE OF RAYMOND L. DIRKS CONTINUES TO LOOK THE OTHER WAY. IF YOU HAVE AN EXAMPLE OF RAYMOND DIRKS PUFFERY PLEASE POST IT
The Best Coverage Money Can Buy
Bloomberg Personal Finance,
April, 2000
Investors sometimes assume that if a stock is covered by one or more brokerage houses, that means they have a fundamentally favorable opinion of the stock's merits. That isn't necessarily so.In the extreme case, brokerage firms (mainly small ones) accept financial inducements to provide coverage. For example, in 1998 J-Bird Music Group (JBRD) retained Security Capital Trading (run by the well-known but controversial analyst Ray Dirks) for advisory services. Security Capital issued a favorable report on J-Bird, which provided Security Capital with 500,000 shares of restricted stock. The existence of those shares was not mentioned in the report. Perhaps you think that such arrangements are a little less than arm's length. But that is only one gross form of the Wall Street coverage game. There are many other forms. Companies that dole out stock offerings to major investment-banking firms have certain (often unspoken) expectations about research coverage. They expect: (1) that the investment banking firm will cover the stock, (2) that it will say favorable things about it, and (3) that it will provide a "booster shot" of favorable coverage not long after the stock offering. These expectations apply to any offering, but especially to the first one, the initial public offering. Brokerage houses that violate these norms often find themselves frozen out of a company's next offering, a fate worse than death these days! --JD
Ray Dirks of Security Capital Trading, Inc. Recommends J-Bird Music Group (OTC Bulletin Board: JBRD) as Strong Internet Growth Stock
WILTON, Conn., July 21 /PRNewswire/ -- J-Bird Music Group, Ltd. todayannounced that it has established an investment banking relationship with thefirm of Security Capital Trading, Inc. Ray Dirks, the well-known securitiesanalyst, is currently recommending the purchase of J-Bird stock, the Wilton,Connecticut-based Internet record label. This comes on the heels of J-Bird'srecent announcement of the signing of rock legend Billy Squier, who has soldmore than 15 million records during his illustrious career.In a 14-page analysis of the company's two-year history and prospects,made public on July 13, 1998 by Security Capital Trading, Inc., J-Bird Recordsis recognized as a company with "huge potential that has not yet beendiscovered by the investment community." The study concludes with therecommendation that "shares of J-Bird are recommended for purchase by veryaggressive, long-term growth oriented investors who are seeking a low-pricedstock that offers a considerable upside potential.""We are extremely impressed with the innovative game plan of the company'sdynamic leader, Jay Barbieri," said Dirks of Security Capital Trading, Inc."The size and growth prospects of the CD segment of the recorded music marketbeing addressed by the company makes use of the Internet to gain exposure fornew artists, as well as formerly successful ones, and takes advantage of thealready well entrenched recording industry marketing and distributionchannels.""Although many Internet-based companies are currently celebratingtremendous success, I believe that continued growth is only inevitable forthose companies like J-Bird that own its content," said J-Bird Music Group'spresident and CEO, Jay Barbieri. "By having this recommendation, from RayDirks, it marks yet another step in our efforts to move toward expanding ourimpact on the recorded music marketplace."In addition to its own record label, web site(http://www.j-birdrecords.com) and 24-hour Web radio station, J-Bird MusicGroup, founded in 1996, has established a relationship with AT&T's a2b musicservice, whose web site will soon permit customer access to J-Bird's artistmusic. J-Bird has also entered into a national distribution agreement withNavarre Corporation, one of the United States' largest distributors of musicto retail outlets. Their 50,000 accounts include Best Buy, Blockbuster,Borders, Circuit City, HMV and Tower.The full report and analysis can also be accessed athttp://www.raysearch.com.SOURCE J-Bird Music Group, Ltd.
Web Site: j-birdrecords.com
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FURTHER VINDICATION!!
SEC v. Sky Capital LLC a/k/a Granta Capital LLC, Ross Mandell, Stephen Shea, Adam Harrington Ruckdeschel, Arn Wilson, Michael Passaro and Robert Grabowski, Civil Action No. 09-CV-6129 (SDNY) (PAC)
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21120 / July 8, 2009
SEC v. Sky Capital LLC a/k/a Granta Capital LLC, Ross Mandell, Stephen Shea, Adam Harrington Ruckdeschel, Arn Wilson, Michael Passaro and Robert Grabowski, Civil Action No. 09-CV-6129 (SDNY) (PAC)
SEC Charges Broker-Dealer, Founder, Executive and Registered Representatives in Multi-Million Dollar Transatlantic Stock Manipulation Scheme
On July 8, 2009, the Securities and Exchange Commission (Commission) filed a civil injunctive action in the United States District Court for the Southern District of New York charging a New York based broker-dealer, Sky Capital LLC a/k/a Granta Capital LLC (referred to herein as Sky Capital) for using fraudulent boiler room tactics between September 2002 and November 2006 to raise more than $61 million from investors in two related companies — Sky Capital Holdings Ltd. and Sky Capital Enterprises, Inc. (the Sky Entities). The Commission also charged Sky Capital's founder, former President and CEO, Ross Mandell, the firm's former COO, Stephen Shea, and four registered representatives, Adam Harrington Ruckdeschel, Arn Wilson, Michael Passaro, and Robert Grabowski, for orchestrating and participating in the fraudulent scheme designed to fraudulently induce numerous individuals to invest in the Sky Entities.
According to the Commission's complaint, Mandell orchestrated the fraudulent scheme with the assistance of Shea and the other defendants. According to the complaint, Mandell directed Sky Capital brokers to make material misrepresentations, and fail to disclose material information, to induce their Sky Capital customers to purchase stock in the Sky Entities. Mandell also personally made material misrepresentations to his customers. Additionally, the defendants implemented and enforced a "no-net sales" policy, which had the effect of preventing investors from selling their Sky Entities' stocks that were otherwise publicly traded on the Alternative Investment Market of the London Stock Exchange. The no-net sales policy had the effect of artificially inflating the price of the Sky Entities' stocks. Moreover, as a result of the "no-net sales" policy, which the defendants did not disclose to their customers, numerous Sky Capital investors were unable to sell their shares in the Sky Entities before trading in those stocks was suspended thereby rendering the investments worthless.
The SEC's complaint further alleges that the fraudulent scheme was extremely profitable for the defendants. Between 2002 and 2006, Sky Capital raised over $61 million from investors in the U.S. and the U.K. Mandell used the investor funds to subsidize his own lifestyle, including using investor funds for various personal expenses, including first-class travel, five-star hotel stays, expensive meals, adult entertainment, and child-care expenses. Mandell also used investor funds to richly compensate the other individual defendants by paying them hefty undisclosed commissions and giving them other perks.
The SEC's complaint charges each of the defendants with violations of Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint also, in the alternative, charges Shea with aiding and abetting the other defendants' violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. Additionally, the SEC's complaint charges Sky Capital with violating Section 15(c) of the Exchange Act, and Mandell with aiding and abetting Sky Capital's violation of Section 15(c) of the Exchange Act. The complaint seeks a final judgment permanently enjoining the defendants from future violations of the above provisions of the federal securities laws, ordering them to disgorge their ill-gotten gains plus prejudgment interest, and ordering them to pay civil penalties. The complaint also seeks to permanently prohibit Mandell from acting as an officer or director of any registered public company.
SEC Complaint
sec.gov
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