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O.C. BUSINESS PLUS | ORANGE COUNTY BRIEFLY

MindArrow Stock Will Go Back on Market

April 28, 2001|E. Scott Reckard

Trading in MindArrow Systems Inc. stock, which was halted Feb. 5 after the company reported that 1.1 million counterfeit shares had been issued, will resume Tuesday on the Nasdaq SmallCap market, the company said Friday.

The Aliso Viejo online marketer has since swapped valid shares from the personal holdings of its founders for the counterfeit shares, taking an $18.7-million charge against earnings to account for the fraud. Based on information from MindArrow and federal investigators, Nasdaq believes the company was a victim and not a perpetrator of crime, said Robert Webber, the company's chief executive.

The investigation is focusing on MindArrow's former stock transfer agent.

MindArrow specializes in electronic brochures delivered as e-mail attachments. Its customers include Oracle, Northwest Airlines, Johnson & Johnson, Toyota, Marriott and the NBA.

MindArrow shares last traded at $4.50.

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