We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : FBN Associates: A Perfect Company

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jeffrey S. Mitchell who wrote (2114)12/28/2000 3:23:07 AM
From: EL KABONG!!!  Read Replies (1) of 2117
Anyone remember Westergaard?

December 28, 2000

SEC Sues Analyst John Westergaard,
Two Related Firms for Stock-Touting

Dow Jones Newswires

-- The Securities and Exchange Commission sued
analyst John Westergaard and two companies he controls, alleging that
they touted stocks on the Internet and through news releases without
revealing they had been paid to publish that analysis.

The two corporate entities -- Inc. and its wholly owned
subsidiary, Westergaard Broadcasting Inc. -- settled the
SEC's charges without admitting or denying wrongdoing, consenting to an
order that permanently enjoins them from violating federal securities laws.
Lawrence Ginsburg, the attorney representing WCI and WBN, said the
consent agreement speaks for itself. He declined to comment further.

Mr. Westergaard is fighting the charges, which include an allegation that he
violated antifraud provisions of federal securities laws. During the period
covered by the SEC's complaint, Mr. Westergaard was chairman,
publisher and editorial director of WCI, and chairman of WBN. He also
was WCI's majority stockholder.

Mr. Westergaard, who resides in New York City, called the SEC's case
against him "bizarre" and accused the agency of conducting a "three-year
vendetta" against him.

"This is a stock-touting case," said the SEC in its complaint, filed in U.S.
District Court for the Southern District, in Manhattan. The agency is
seeking a permanent injunction against Mr. Westergaard to bar him from
further violations of federal securities laws, as well as unspecified civil

The SEC's complaint alleged that the defendants charged small-cap
publicly traded companies as much as $48,000 to publish positive reports
about them that were disseminated through press releases, an Internet
radio show and an Internet Web site. The complaint alleges that Mr.
Westergaard misled prospective investors by falsely claiming his analysis
was "independent."

The SEC staff previously concluded an earlier investigation into the
sufficiency of Mr. Westergaard's disclosures of compensation received in
connection with stock recommendations without recommending an
enforcement action against him.

Write to John Connor at
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext