April 17, 2001 |
Former penny-stock tycoon Robert E. Brennan was convicted of bankruptcy fraud after a monthlong trial in Trenton, N.J., and could face six to 10 years in federal prison. Brennan, 57, was convicted on seven of 13 counts. A hearing is set for today to determine whether he will remain free on bail pending sentencing.
October 30, 2000 |
By his own admission, Jordan Belfort may have set the standard for greed and sleaze in the world of boiler-room brokerages. Belfort estimates he cheated investors out of as much as $200 million in the early 1990s. He spent his $55-million profit on a 166-foot yacht--which sank--a $175,000 sports car, prostitutes, gambling sprees and drugs for his gaggle of Gen-X pitchmen. Belfort and his partners, he said, "lied to customers. We lied to government when being investigated. We lied to each other."
September 21, 2000 |
A New Jersey teenager has agreed to repay $285,000 that stock regulators said he made when he was 14 by manipulating stocks via the Internet. The Securities and Exchange Commission said Wednesday that Jonathan G. Lebed bought large blocks of penny stocks, hyped them on financial message boards and then dumped his shares after the price rose.
September 7, 2000 |
Two Southern California residents were among 33 companies and individuals accused by the Securities and Exchange Commission on Wednesday of fraudulently using the Internet to make more than $10 million in illegal profits by driving up the prices of more than 70 small stocks. SEC officials said this latest round of 11 civil fraud lawsuits seeks to curb increasing use of Internet chat rooms, Web sites, and e-mail messages to try to hype small, thinly traded stocks for a profit.
April 21, 2000 |
The stock market's brutal sell-off in the last month has saddled some battered "dot-com" companies with an ironic new problem: On top of their many other worries, the fact that their stocks have sunk to such low levels may itself keep the share prices from rebounding. A large number of Internet shares have tumbled to "penny-stock" status of $5 or less--a level at which institutions such as mutual funds won't even consider buying them.
February 25, 2000 |
Two men exploited "the dark side of the Internet" when they made more than $1 million by driving up the value of penny stocks with a flood of e-mails disguised as if they had been sent by America Online Inc., a prosecutor alleged Thursday. U.S. Atty. Mary Jo White announced the securities fraud charges against James Sheret Jr. of Queens, N.Y., and Glenn Conley of Gaston, Ore., in connection with a nationwide, Internet-based scheme involving about 60 companies.
CALIFORNIA | LOCAL
January 11, 2000 |
They're not exactly "Pennies from Heaven," but penny stocks accounted for some of the fastest-rising prices among shares of San Fernando Valley-based public companies in 1999. Ranging from cutting-edge technology firms to mundane businesses such as restaurants and oil refiners, penny stock companies based in the Valley run the gamut from growing start-ups to long-established enterprises.
August 9, 1999 |
Three weeks of devastating losses have demoralized even some of the hardiest players in the Internet stock arena--from share-option-laden Silicon Valley workers to Middle American day traders to veteran Wall Street money managers. With that backdrop, this week may bring the biggest test yet for the Net stocks mania that has kept investors transfixed for much of the last year.
May 20, 1999 |
The Securities and Exchange Commission can't permanently bar an individual from trading penny stocks for allegedly engaging in fraud before a 1990 federal securities reform law took effect, a federal appellate court ruled Wednesday. The ruling stems from the SEC's 1995 attempt to bar over-the-counter securities dealer Russell Koch from participating in the offer of any penny stock after he allegedly provided materially false and misleading information about a company called Unifirst Corp.
March 25, 1999 |
An appeals board of NASD Regulation, the self-regulatory agency governing the brokerage industry, on Wednesday upheld penalties imposed on the former La Jolla Capital--once a major Southland penny-stock dealer. The decision was issued by NASD Regulation's National Adjudicatory Council after an appeal of an earlier decision by its Los Angeles-area conduct committee. NASD Regulation said La Jolla's successor, San Diego-based Pacific Cortez Securities, is barred from selling penny stocks.