SHEC Labs is scamming again, Ray, Tom when will you learn
From: SHECLabs <mdandml_at_hotmail.com>
Date: 26 Jul 2005 23:08:01 -0700 Here is the latest on SHEC Labs and their relationship with chop stock boiler room worker Chris Gonzalez, formally of Morgan Spaulding who SHEC Labs has already been burned by and who is on the roster for raising funds. This company is the worst small company in the world. This is addressed to Tom Beck and Ray Fehr of SHEC Labs Why on earth would you still want to deal with a guy who is unregistered and the last registration he had was with a known boiler room. Why would you deal with a guy who just ripped you off 62 percent and has caused you many problems? Every brokerage firm this theif worked for since he started has been a boiler room. I am not advising you, you are making your own bed and it stinks. You wonder why no deals hit for you? You two are inept at best. Take a look at your boy´s resume, and as you know I am sending a copy to Jim Porter as he asked for one and never received anything.
File for:
U.S. SECURITIES AND EXCHANGE COMMISSION
The Commission's complaint alleges that from approximately late 2001 through September 30, 2003, Gross, along with Telvest and his wholly owned entity Morgan Spaulding, engaged in a deliberate scheme to defraud overseas purchasers of Regulation S stock. These defendants facilitated the sale of nearly $15 million in unregistered shares of U.S.-based companies to overseas investors by, among other things, deceiving the investors into believing that nearly all of the stock purchase price would be remitted to the companies issuing shares. Transaction confirmations sent to investors disclosed only a fee of either one percent of the purchase price or a flat $50, concealing the fact that approximately 55 to 70 percent of the purchase price would be paid to Gross, Morgan Spaulding and Telvest; to overseas brokerage firms as undisclosed commissions; and as "finder fees" to promoters including defendant John Flanders. In truth, only about 30 to 45 percent of the invested proceeds actually made it to the issuers. The complaint alleges that Telvest and Flanders acted as unregistered broker-dealers in connection with the fraudulent transactions. The complaint also alleges that Gross directed and controlled the day-to-day operations of Telvest and Morgan Spaulding during the period of the fraud, and closely supervised the Morgan Spaulding employees who administered the fraudulent stock sales. As alleged in the complaint, Gross, on behalf of Telvest, entered into the agreements with the issuing companies, and directed the wire transfers to the overseas brokerage firms and finders in amounts far in excess of the fees and commissions disclosed to investors. The Commission's complaint alleges that Gross, Morgan Spaulding and Telvest violated Section 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder. Telvest and Flanders are charged with violating Section 15(a) of the Exchange Act. Gross is also charged with Telvest's and Morgan Spaulding's violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and for Telvest's violation of Section 15(a) of the Exchange Act, as a control person under Section 20(a) of the Exchange Act. SEC Complaint in this matter
Employing Brokerage Firm: MEYERS POLLOCK ROBBINS, INC.
Brokerage Firm CRD Number: 13436
When Robert Gallo applied to be a registered stockbroker, he mentioned his only previous experience was as a labor foreman. He did not say anything about his reputed association with one of the nation's largest crime families, New York's Genovese clan. Mafia-run stock-market firms focus on violence and ripping off clients. Once Gallo joined the Monitor Investment Group at 20 Exchange Place, however, he acted in a manner more consistent with a character in "The Sopranos" than someone who keeps track of "Moneyline News Hour." On June 14, Gallo was indicted along with 119 others in the biggest securities fraud case in U.S. history. Since then, law enforcement officials and financial regulators have come to believe the mob's influence on Wall St. may be even greater than they once supposed. The five New York Mafia families, say authorities, have figured out that the current bull market has made it ripe for the picking. Officials see increasing cooperation among crime families to divide up the Wall Street pie.
"They are getting more together," said Barry Mawn, director of the
Vincent Langella, suspect in mob fraud bust, after June arraignment.
Investigators, prosecutors and regulators with the National Association of Securities Dealers and the Securities and Exchange Commission all agree that the mob has lurked at the margins of Wall Street for years. But now for the first time, prosecutors say, a mob boss is receiving a per share "mob tax" in a stock scam. Alphonse (Allie Boy) Persico, reputed acting boss of the Colombo crime family, is getting 6 cents for every share the mob secretly controls in various pump-and-dump schemes, prosecutors allege. Assistant U.S. Attorney Patrick Smith, who is leading the 120-defendant mob-on-Wall-Street case for Manhattan U.S. Attorney Mary Jo White, said the money is funneled through Persico's cousin, Frank, a registered broker since the end of the last bull market - 1988.Frank Persico Frank Persico, an alleged Colombo associate, along with Gallo and Vincent Langella, another reputed Colombo associate, represents the new breed of rising Mafia star - the wiseguy broker. A review of their résumés reveals a trail of fraud, as they jumped from one scam brokerage house to another. (All three have been indicted in various securities fraud schemes). For instance, from January 1989 through December 1992, Persico worked at A.S. Goldmen & Co. He jumped to J. W. Barclay from March 1993 through February 1994, then to Meyers Pollack Robbins through June 1995. He moved to William Scott & Co. through November 1997, then to First Liberty Investment Group. All of these firms have been implicated in massive fraud in investigations by the Manhattan district attorney, the Manhattan U.S. attorney or the SEC. A look at the history of these mob-connected brokerage houses shows how they operate within a few blocks of one another in the heart of Wall Street. Robert Gallo (covering his face), an alleged wiseguy stockbroker, leaves court Thursday. There, the crime families of New York - who often can't agree on anything - forged temporary and fragile alliances to make money. At 17 State St., from 1993 through 1996, White Rock Investments was a cooperative agreement between the Bonanno, Colombo and Genovese families, according to Brooklyn federal prosecutors. At 30 Broad St., in 1996 and 1997, Meyers Pollack Robbins was controlled by the same allegiance of the Bonanno, Colombo and Genovese families, according to court papers.
At 80 Broad St. and 84 William St., in 1996, First Liberty became a
And most recently, in 1998 through this June, DMN Capital Investments at 5 Hanover Square was run by the Bonanno and Gambino families, an indictment brought by a Manhattan federal grand jury alleges. Investigators say Wall Street is a perfect spot for La Cosa Nostra strong-arm tactics: The mob is threatening white collar yuppies, not longshoremen or Teamsters. Salvatore Piazza and an unidentified woman Typically, mobsters muscle in on a small brokerage house, then set up boiler rooms to hard-sell stock in classic pump-and-dump schemes. Gangsters secretly own stock in worthless companies. They pay off corrupt brokers and stock promoters to pump up the stock's value by telling unwitting investors a company is about to go public or win a huge contract or be bought out by a major firm. When the value rises significantly, they dump their stocks en masse, forcing the stock value to plummet and leaving in the lurch unwitting investors, who often are senior citizens. When the scheme is exposed, they move on to another questionable firm.
"I call it the maggot run," said one regulator who spoke on condition Michael Grecco and an unidentified woman leaving the courthouse.
At DMN Capital in Hanover Square, a former employee who spoke to the
Daily News on the condition of anonymity described the atmosphere as
Run by reputed Gambino associate James Labate and Bonanno associates Salvatore Piazza and Jeffrey Pokross, DMN frequently threw parties with hookers at midtown hotels, spending wildly as it scammed unsuspecting investors through hard-sell tactics, said the former DMN employee. Prosecutors allege that to keep the party going, the gangsters kept stock promoters in line by threats of violence. When one promoter was suspected by DMN's gangster principals of being an informant, Labate - who is not a broker allegedly knocked him out with one punch, then stripped off his shirt to see if he was wearing a recording device, according to prosecutor Smith. Like many of the mob-run firms, there inevitably came a day when there was a falling-out among thieves. At DMN, Colombo associate Persico shot up a DMN computer when he decided he had been ripped off, Smith alleged. At Meyers Pollack, a 6-foot-4 Genovese associate slapped a broker in the face. The broker sought help from a Bonanno associate, and both families arranged a Feb. 12, 1997, "sitdown" at Abbracciamento Italian restaurant near Canarsie Pier in Brooklyn.Wall Street As a result, prosecutors allege, the Bonanno family agreed to let the Genovese family control Meyers Pollack. At Monitor Investment Group, the pump-and-dump scam began to fall apart when one of the stock brokers who was beaten decided to fight back with a lawsuit. Registered broker Robert Grant, who now lives at an undisclosed location in fear of mob revenge, said in court papers he had been working at Monitor for several months when broker Robert Gallo told him there was a staff meeting in the conference room. On Jan. 19, 1996, Grant and a co-worker walked in and, without warning and for no stated reason,were attacked. Gallo and five other brokers beat the two men with fists and kicked them to the floor. One man was clubbed with an office chair; the other was bitten on the back. Grant later taped Gallo, who apologized for the beating but said he believed Grant was about to skip to another firm and take customers with him. He then recited dialogue that could have come from just about any mob movie imaginable.
"The way youse carried yourselves, that youse was looking to do the
Employing Brokerage Firm: MONITOR INVESTMENT GROUP, INC.
Brokerage Firm CRD Number: 31007
Employing Brokerage Firm: TASIN & COMPANY, INC.
Brokerage Firm CRD Number: 30709
Washington, D.C.-NASD Regulation, Inc., announced today that that The Harriman Group, Inc. (HGI) has been fined $12.3 million and expelled from the National Association of Securities Dealers, Inc. (NASD®). In the decision, the Hearing Officer determined that HGI, acting as an underwriter of three securities - Sims Communications, Inc., Natural Health Trends Corp., and International Cutlery, Ltd., defrauded investors and made approximately $12.3 million in illicit profits and excessive, undisclosed underwriter compensation. HGI illegally profited by purchasing stock at below-market prices to cover large short positions the firm had intentionally created in its inventory. In each offering, the firm purchased the covering shares from shareholders who had received their securities prior to the initial public offerings (IPOs) through private placements and bridge financing arrangements. The registration statements and amendments filed by Sims Communications, Inc., Natural Health Trends Corp., and International Cutlery, Ltd. with the Securities and Exchange Commission reflect that the shares owned by selling shareholders were restricted and therefore could not be sold for up to two years after the IPO, without the permission of the lead underwriter. However, HGI engaged in fraud by failing to disclose the private, below-market transactions with the selling shareholders; the firms' plans to distribute the selling shareholders' securities to the public; and the receipt by HGI of $12.3 million in excessive underwriting compensation. Previously, NASD Regulation had sanctioned two of HGI's senior executives, Brian Scanlon and Mark Hanna - along with Maidstone Financial Inc., and two of its senior executives, Marshall Bernstein and Stuart Litman - in connection with fraud in the underwriting of three securities. Maidstone, which was expelled, and the four individuals, all of whom were barred, were fined a total of $14.8 million. This case was brought by NASD Regulation's New York District Office with assistance from the Corporate Financing Department in Washington, D.C. HGI, Inc. does not currently operate a securities business. In September 1997, HGI, which was then based in Jericho, N.Y., withdrew from the NASD. Investors can obtain the disciplinary record of any NASD-registered broker or brokerage firm by calling (800) 289-9999, or by sending an e-mail through NASD Regulation's Web site. NASD Regulation oversees all U.S. stockbrokers and brokerage firms. NASD Regulation, along with The Nasdaq Stock Market, Inc., are subsidiaries of the National Association of Securities Dealers, Inc., the largest securities-industry self-regulatory organization in the United States.
Employing Brokerage Firm: THE HARRIMAN GROUP, INC.
Brokerage Firm CRD Number: 14079
Washington, D.C.-NASD Regulation, Inc., announced today that that The Harriman Group, Inc. (HGI) has been fined $12.3 million and expelled from the National Association of Securities Dealers, Inc. (NASD®). In the decision, the Hearing Officer determined that HGI, acting as an underwriter of three securities - Sims Communications, Inc., Natural Health Trends Corp., and International Cutlery, Ltd., defrauded investors and made approximately $12.3 million in illicit profits and excessive, undisclosed underwriter compensation. HGI illegally profited by purchasing stock at below-market prices to cover large short positions the firm had intentionally created in its inventory. In each offering, the firm purchased the covering shares from shareholders who had received their securities prior to the initial public offerings (IPOs) through private placements and bridge financing arrangements. The registration statements and amendments filed by Sims Communications, Inc., Natural Health Trends Corp., and International Cutlery, Ltd. with the Securities and Exchange Commission reflect that the shares owned by selling shareholders were restricted and therefore could not be sold for up to two years after the IPO, without the permission of the lead underwriter. However, HGI engaged in fraud by failing to disclose the private, below-market transactions with the selling shareholders; the firms' plans to distribute the selling shareholders' securities to the public; and the receipt by HGI of $12.3 million in excessive underwriting compensation. Previously, NASD Regulation had sanctioned two of HGI's senior executives, Brian Scanlon and Mark Hanna - along with Maidstone Financial Inc., and two of its senior executives, Marshall Bernstein and Stuart Litman - in connection with fraud in the underwriting of three securities. Maidstone, which was expelled, and the four individuals, all of whom were barred, were fined a total of $14.8 million. This case was brought by NASD Regulation's New York District Office with assistance from the Corporate Financing Department in Washington, D.C. HGI, Inc. does not currently operate a securities business. In September 1997, HGI, which was then based in Jericho, N.Y., withdrew from the NASD. Investors can obtain the disciplinary record of any NASD-registered broker or brokerage firm by calling (800) 289-9999, or by sending an e-mail through NASD Regulation's Web site. NASD Regulation oversees all U.S. stockbrokers and brokerage firms. NASD Regulation, along with The Nasdaq Stock Market, Inc., are subsidiaries of the National Association of Securities Dealers, Inc., the largest securities-industry self-regulatory organization in the United States. Received on Tue Jul 26 2005 - 23:08:07 PDT |
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