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News ::
Rating The Stock Touts - Who are the better swindlers (english)
25 Nov 2002
Modified: 10 Jan 2003
New York Attorney General, Eliot Spitzer, signals Wall Street investment bankers on how much they'll pay in fines from the billions they swindled from Boston investors.
eliot_spitzer.jpg
New York Attorney General, Eliot Spitzer, signals Wall Street investment bankers on how much they'll pay in fines from the billions they swindled from Boston investors.
Rating
The Stock Touts
- who
are the better swindlers
By
Eric Stevenson - Axcess
Business News
In Albany New
York Friday limousines where lined up as some of Wall Street's most
influential investment bankers and lawyers got out to meet with
federal and state securities regulators in talks scheduled to discuss
fines rumored to exceed $1 billion for misleading investors with
poor research.
Repeatedly Americans
have seen news on the pending fines against some of Wall Street's
better known investment banking firms, waiting for regulators to
act. And what an act it was. Attending that meeting in Albany Friday
were Goldman Sachs Group, Morgan Stanley, Lehman Brothers Holdings
Inc., Deutsche Bank AG, UBS AG and Bear Stearns who are facing fines
of about $75 million each.
It
was the roaring 80's all over again when Michael Milken, the junk
bond king of Drexel Burnham Lambert, faced over a billion in fines
and 10 years in prison. But while there were similarities in misleading
investors, this time no one seemed to be at fault. Apparently Wall
Street learned from Mr. Milken's experience as the Albany NY meeting
wasn't about crime, just what they would pay regulators for having
gotten away with it. Milken had served 22 months of his ten year
sentence, the aristocrats of Wall Street merely climbed back into
their limos when the meeting was over and left. But what about
the people who lost money?
When the "junk
bond king" of Wall Street was cornered for "misleading
investors" it was regulators who attempted to recover the billions
lost in the savings and loan scandals in the early 80's and some
did get portions of investors' losses back. Many of the investment
bankers and executives also went to prison for their role in misleading
those investors.
It appears today
that investment banking firms no longer face criminal prosecution,
and the unsuspecting investors who relied on these slick stock touts
of the 21st century? I guess they're out of luck! The only one's
seeing any money out of this are the prosecutors whose budgets are
being filled by the very monies charged against Wall Street's finest.
Can you believe that nonsense?
In my last Inside
Commentary I wrote about a young man who had been swindled
in a penny stock scheme and it was the same state regulators
(NY) meeting in Albany who took his complaint and told him most
likely nothing would come of it as the case was too small and their
budgets were already strained.
It
was State Attorney General Eliot Spitzer who first came to the media
pledging that prosecution lay in the path of these Wall Street investment
banking firms for misleading investors. Now, its the same Eliot
Spitzer meeting with these investment bankers behind closed doors
to work out the settlements for touting stocks on unsuspecting Americans,
like Mr. Ian Park, the
young man who had been swindled in a penny stock scheme who has
formed a grass roots campaign to reform penny stock rules. I
urge you to read that story and send us an email if you've ever
been swindled in a stock scheme. We're going to interview some of
you for a follow up article soon!
Securities regulators
have indeed had their hands full, both federal and state, with the
advent of the Internet. Stock touts have found new ways to reach
unsuspecting investors and this has added to regulators already
straining budgets and limited staff.
Wall Street's
finest investment bankers have not left the Internet out of their
own bag of tricks either. Financial information is touted to investors
from many of Wall Street's better known investment banking firms
and often that information is incorrect and misleading.
In an article
recently published by Axcess Business News, "Green
or Mean Returns - Investing in the Environment",alert
financial columnist, Freddie
Mooche, uncovered errors in Market Guide's Waste Management
Services Fundamentals on a NJ recycling company's (OTCBB: KBFP)
numbers that purport to have been updated by Market Watch Nov 17
when in fact KBF Pollution Management, Inc. had disclosed its Sept
30 figures in its 10-Q filing and announced 50% increases in sales
for the period in a Nov
14 release, supporting Ms. Mooche's claim of error on the part
of Market Watch. Mistake? How could they not have the latest
10-Q figures if they updated their Report on Nov 17th?
Market
Guide's figures were made available through Charles
Schwab's web site. Schwab is one of the nations largest discount
brokers where millions of Americans go online to trade and they
rely heavily on the information found there.
Few American's
are aware of Schwab's trading practices either. Schwab can usually
be found in most penny stocks as a market maker and their firm is
rumored to be quite ruthless in its trading tactics towards these
smaller companies. If those rumors are true, its firms like Schwab
that force many penny stocks' executives to switch exchanges. Axcess
Business News recently interviewed
the CFO of Greenman Technologies, Inc (AMEX: GRN), one of those
companies that made the switch to the Amex over concerns for shareholder
liquidity. (Schwab was not mentioned in that article)
So who has
swindled unsuspecting investors out of the most money? Is it
Wall Street's finest or the penny stock promoters? That answer can
be found in my next Inside Commentary.
Below are some
links related to this editorial's subject matter. We placed our
rating system of rabbits next those we liked best. (The more
rabbits, the more relevant the story)
Links to
Internet Stock Fraud:
From
Wall Street to Web Street:
Online brokerage industry report on the problems and promise of
the online brokerage industry; office of the New York Attorney General
Eliot Spitzer.
Project
Penny:
Grass roots organization attempting to reform penny stock rules.
Founded by Ian Park.
Ohio
Man Gets 7 Years in Stock Scam
A stockbroker who admitted bilking clients out of more than $50
million by shifting funds and sending out false account statements
was sentenced Thursday to seven years in prison.
800America
Sued for Fraud, CEO Arrested
The CEO of online retailer 800America.com Inc. (OTCBB:ACCO) was
arrested on Wednesday on charges he allegedly ran a massive scheme
to defraud investors, just hours after the Securities and Exchange
Commission sued the firm for allegedly falsifying revenues.
Analyst
Jack Grubman Admits Making Up Story For CitiGroup
Grubman said the story, sent by him in e-mail memos to another analyst,
was just baseless boasting on his part. "I invented a story
about ratings of AT&T stock to help my boss win a power struggle
at Citigroup Inc," he said in a statement.
We'll be giving
our readers more articles on stock fraud and our own ratings of
whose worse. Watch your in-box for your weekly Axcess Business
News Alert. If your not a subscriber to Axcess Business News,
please join now. Members get news
on companies whose stocks we follow and exclusive interviews with
those companies executives plus late breaking articles and our own
stock picks. It's all free when you join!
Back
to Small Cap Stocks >>
Give
us your feedback on this Story
Disclaimer
The views or opinions contained Inside Commentary are those of the
editor and are not necessarily the views or opinions of Axcess Business
News. Comments made are independent of this web site, its partners
sites, or the staff, employees, directors, officers or agents of
Axcess Business News. No comments, views or opinions are intended
to support any political party, organization, association or group,
directly or indirectly, in any manner. Inside Commentary is purely
an editorial presentation of our editor on subjects of interest
to our audience. If you have any comments or suggestions please
direct them to editor (at) theaxcess.net.
See also:
http://www.theaxcess.net
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