New book by Larry Connors Click here Improve your trading - See how
Yesterday, the chief executive officer of National Lampoon Inc. and the heads and associates of other companies found themselves figuratively knee-deep in sewage after federal authorities charged them with conspiracy and securities fraud for allegedly manipulating their companies' publicly traded stocks for profit.
Flanked by representatives from the FBI and the Securities and Exchange Commission, acting U.S. Attorney Laurie Magid said that the seven people charged had participated in a scheme to rig the system so that "only those on the inside [would] benefit."
The scheme created the "illusion" of market interest in a company by way of "corrupt" stock promoters who bought and held a company's stock in exchange for cash kickbacks upward of $68,000, according to news releases and court documents.
The idea was to inflate a stock's value artificially and increase the interest of prospective investors.
"But this was manipulated," Magid said. "[It would] leave the average investor holding the bag when the stock plummets down to the actual value."
Daniel Laikin, 46, of Los Angeles, head of National Lampoon Inc., an L.A. media company with rights to the National Lampoon properties, controlled more than 40 percent of the company's stock and stood to make $15 million from the scheme, Magid said.
Also charged were Dennis Barsky, 60, of Las Vegas, a National Lampoon consultant, and stock promoters Tim Dougherty, 29, of Webster, N.Y., and Eduardo Rodriguez, 49, of Livingston, N.J.
Rodriguez also faces charges for attempting similar schemes with two other companies -- Advatech Corp., a West Palm Beach, Fla., biotech corporation, and Swedish Vegas Inc., a Delaware corporation in the business of "themed eateries," according to court documents.
Also indicted were Richard Margulies, 58, of Edison, N.J., chief executive of Advatech; and Alex Kanakaris, 52, of Newport Beach, Calif., and Richard Epstein, 60, of Parkland, Fla., both major investors in Swedish Vegas.
Authorities were able to build their case using a "cooperating witness" who posed as a corrupt stock promoter, according to Magid.
She said that her office had been able to establish the case because some of the "overt actions" happened in the Philadelphia area, including the mailing or wiring of funds.
Daniel M. Hawke, regional director for the SEC, said that trading on all three corporations had been suspended yesterday morning.
To see more of the Philadelphia Daily News, or to subscribe to the newspaper, go to http://www.philly.com. Copyright (c) 2008, Philadelphia Daily News Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
