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   PastimesWhodunit? Two Stockbrokers Murdered in Jersey; Reference


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To: Jeffrey S. Mitchell who wrote (2)11/2/1999 9:43:00 PM
From: Jeffrey S. Mitchell
   of 79
 
Re: 10/27/99 - Two stockbrokers killed in Colts Neck 'whodunit'

Two stockbrokers killed in Colts Neck 'whodunit'

Published in the Asbury Park Press 10/27/99

By SHERI TABACHNIK

FREEHOLD BUREAU

A Colts Neck man and his business partner were shot execution-style in the home one of them occupied, Monmouth County Prosecutor John Kaye said Tuesday.

THOMAS P. COSTELLO photo One of two bodies found inside this $1.1 million Colts Neck home is removed Tuesday afternoon. Police are searching for an explanation -- and suspects -- in the slaying of two stockbrokers.

Alan Chalem, 41, of 3 Bluebell Road, and Mayir Lehmann, 37, of Woodmere, N.Y., were found dead at 1 a.m. in the foyer of the home Chalem shared with his girlfriend.

"This is an execution," Kaye said, referring to the single shot to the back of Lehmann's head. "There was no burglary."

The prosecutor said no arrests had been made. He would not comment on possible suspects or a motive in the double homicide.

"This is a definite 'whodunit.' In the majority of homicides we have a pretty clear-cut idea, even if we can't prove who did it right away, we at least have a pretty good idea who did it. . . . This is very different," Kaye said.

Neither the girlfriend, Kimberly Scarola, 39, nor her 13-year-old son were home at the time of the murders, Kaye said.

The two men, who were involved in the stock market, had a Web site based in Israel through which they sold penny stocks, Kaye said. He did not know the Web address.

"Whether the stocks or what they did for a living had anything to do with their death, I don't know, but there was no burglary involved," Kaye said. "Reasons, we're not certain yet."

Chalem suffered multiple gunshot wounds to his head while Lehmann had one bullet wound in the back of his head, Kaye said. "It looked to detectives like (Chalem) he tried to get up several times and was shot several times," Kaye said.

Lehmann had a cellular phone in his hand. Another cellular phone was found near Chalem. Investigators have checked what calls were made from the phones, but Kaye would not release that information.

Chalem and Scarola had moved to Bluebell Road sometime this spring, according to neighbors. The house was owned by her father, Russell Candela, of Brooklyn and East Hampton, N.Y., who purchased the property for $1.1 million last December.

Two workmen -- Kaye believed one was an electrician and the other a carpenter -- found the bodies around 1 a.m. The workmen, whom Kaye would not name, both were friends of Chalem, he said, and had agreed to meet him at that hour to pick up some molding.

Upon arriving at the house, the workmen noticed a gray rental Dodge in the driveway with the trunk open and became suspicious, Kaye said. They went inside via the front door and saw the bodies.

The prosecutor's office has impounded the rental car, which had a suitcase in the trunk, Kaye said. Authorities are checking the contents of the suitcase. The car had been rented to Lehmann, the prosecutor said.

Throughout the day, detectives scoured the estate for clues. Reporters and passersby were kept outside the black wrought-iron gate that blocked the circular driveway. A large, ornate fountain, not operating, decorated the front lawn of the large white colonial.

Bluebell Road is a winding street with five homes. Most are fenced in behind security gates with intercoms, and most neighbors yesterday were unaware that a crime had occurred in the neighborhood, and most said they did not know Chalem, Scarola or her father.

About 3:30 p.m., two vehicles pulled up to the gate. Candela, the homeowner, and four other men emerged from the cars while one woman stayed behind the darkened windows of a sport utility vehicle.

One of the men identified himself as Jesse Scarola, Kimberly's ex-husband and the father of her son.

Kimberly Scarola, who was in Fort Lauderdale, Fla., when her boyfriend was murdered, traveled back to New Jersey yesterday. Her son had been staying with his father, Kaye said.

Chalem had planned on meeting his girlfriend in Florida yesterday, Kaye said.

The bodies were removed around 4 p.m. The prosecutor's office needed to obtain a search warrant before detectives could enter the crime scene, Kaye said.

"If the victim owns the crime scene there's no need for a warrant," Second Assistant Monmouth County Prosecutor Robert Honecker said. "In this case, once it was determined neither of the victims owned the property, we secured a search warrant."

Most Colts Neck residents were shocked by the news. Many of them did not know late yesterday that there had been a double homicide in their town.

Rosemary Manziano was one of the few residents who had heardabout it.

"It's very unusual. This is a very quiet town and we like it that way," said the seven-year township resident.

"It's getting overpopulated, there are more people coming in like a big city. We didn't have this many people four years ago."

Colts Neck Mayor Lillian Burry also was disturbed by the news.

"It's unfortunate," Burry said. "This is something we certainly aren't accustomed to hearing."

This is the second murder in Colts Neck this year. Last week, 80-year-old Harry Margulies was indicted for murdering his 73-year-old wife, Enid, in May.

Sheri Tabachnik: (732) 863-1500, Ext. 7751.

Staff writers Joseph Sapia and Sonya Beard and The Associated Press contributed to this story.

from the Asbury Park Press

Published on October 27, 1999

injersey.com

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To: Jeffrey S. Mitchell who wrote (3)11/2/1999 9:45:00 PM
From: Jeffrey S. Mitchell
   of 79
 
Re: 10/27/99 - Two brokers killed execution-style in New Jersey

Updated 7:53 PM ET October 27, 1999

COLTS NECK, N.J. (Reuters) - Two stockbrokers were found dead in a pool of blood on a mansion floor in a double execution-style slaying, authorities investigating the case said Wednesday. Authorities said workmen found the bodies of Mair Lehmann, 37, of Woodmere, New York, and Alain Chalem, 41, on Tuesday in the million-dollar, 16-acre mansion where Chalem lived with a girlfriend. They said the men traded penny stocks for investors on the Internet. Prosecutors, who had no suspects yet, were investigating whether the killings were linked to their business. Chalem was shot several times in the head, indicating a struggle, and Lehmann suffered one bullet wound to the back of the neck, Monmouth County Prosecutor John Kaye said. Cellular phones, one hit by gunfire, were found near the bodies. The phones had more than 90 messages on them, many from locations overseas. Kaye said investigators were probing the traders' connections with "people they did business with in an organized way," including people in Russia. Kaye said the brokers were believed to be involved in practices that violated FCC regulations and might have led to the murders. But he said a disgruntled investor was not a likely suspect. "If you lost money trading, you'd want your money. If you kill them, there is no money," Kaye said. Investigators were looking for clues in the business's computer hard drives, cell phone logs and other records.

news.excite.com

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To: Jeffrey S. Mitchell who wrote (4)11/2/1999 9:46:00 PM
From: Jeffrey S. Mitchell
   of 79
 
Re: 10/28/99 - Both victims worked for discredited stock dealers

Both victims worked for discredited stock dealers

Published in the Asbury Park Press 10/28/99

By JASON METHOD

and JAMES W. PRADO ROBERTS

STAFF WRITERS

TWO STOCK promoters executed in an opulent Colts Neck house -- killed because of their financial dealings, according to authorities -- had complicated business histories that involved the hyping of obscure stocks over the Internet.

One victim, Maier Lehmann of Woodmere, N.Y., was a primary defendant in a penny-stock fraud case brought by the SEC last year that charged $12 million was defrauded from investors.

The other, Alain Chalem, was Lehmann's partner in the Internet business and was associated with an eclectic assortment of financial dealings in the last 10 years, including the defunct Woodbridge firm, A.S. Goldmen & Co., charged by New York authorities with bilking $100 million from unsuspecting clients.

They were killed in Chalem's marbled-floored house, where they ran a Web site promoting "highly speculative risks."

They operated the Internet company from the 3 Bluebell Road house where Chalem lived with his girlfriend. Prosecutor John Kaye said Lehmann, but not Chalem, was also involved with a similar Internet site: Futuresuperstock.com, implicated in the pending SEC fraud case.

Although both were involved in the stock market, neither were licensed to trade stocks for the public with the National Association of Securities Dealers, which regulates and licenses traders. The Web site said it does not trade stocks for the public.

The StockInvestor.com Internet site is registered to a post office in Panama and a site administrator in Budapest, Hungary. That administrator, Moos Gabor, was shocked yesterday when told about the murders.

"Jesus Christ! You must be joking. Oh my God," Gabor said, and quickly told someone else with him: "Maier Lehmann was murdered."

But Gabor declined to speak about his relationship with Lehmann, whom he met 10 months ago.

"I don't know about what about he did, what he did for the company. It was the first time anyone I knew was murdered," Gabor said.

After the SEC complaint was filed, Lehmann agreed to pay $630,000 in "disgorgement and penalties" in response to charges that he violated antifraud and registration laws, according to an SEC statement dated Jan. 21.

Lehmann was listed as a primary defendant in the case against Electro Optical System Corp., a penny-stock company traded over-the-counter. Its shares rose from 50 cents to over $5 in one day. The SEC said defendants in its lawsuit distributed false information about the company in news releases and over the Internet. Then defendants sold their holdings for a hefty profit, the SEC said.

According to wire services and an SEC release, Electro Optical was widely promoted on the Internet after proponents claimed the company had developed an electronic fingerprint-based security and identification system.

The SEC charged that the defendants made more than $12 million in illegal profits from investors.

According to court records, Lehmann deposited $500,000 in stock proceeds in an account for his wife, Tamar. Mrs. Lehmann later admitted under oath that she did not know she had received the stock or the proceeds.

But Lehmann's rabbi, Moshe Weinberger, of the 200-member Orthodox temple Congregation Aish Kodesh in upscale Woodmere, defended Lehmann.

"Maier Lehmann is a descendent of an illustrious family of rabbinical scholars from Germany who exemplified every noble trait and characteristic you would expect in a human being," Weinberger said. "He was soft spoken, kind hearted. On Sabbath, he would not discuss anything relating to business, we would talk about spiritu-al concepts, ideas from the Torah. He was completely devoted to his wife and his children."

A law enforcement source identi-fied one of the men who found the victims' bodies as Allen Lloyd Conkl-ing. In the SEC case, Conkling is identified as an employee whom Leh-mann hired to promote Electro Opti-cal.

Conkling could not be reached for comment yesterday.

Chalem's business history is traced back to 1980.

According to NASD records, Chal-em was associated with Spectrum Printing, Inc., address unavailable, from 1980 through 1989. For the next four years, he owned Heartbreak Hotel, a Catskills inn that Kaye said burned down in 1994.

In 1990 and 1991, he had business connections with the University of Miami, according to NASD records. He was then involved with Bay St. Contracting, address unavailable, and from January of 1994 through December 1995 he was with A.S. Goldmen & Co., Inc. the Woodbridge penny-stock firm accused in July of bilking investors, many of whom were elderly, out of almost $100 million.

Manhattan District Attorney Rob-ert Morgenthau charged in July that the company used unlicensed sales-men, high-pressure tactics and artifi-cial manipulation of stock prices.

Chalem applied in February 1994 for a license from the NASD to trade stocks but was denied, according to Karen M. O'Brien, general counsel for the North American Securities Ad-ministration Association.

"The question is, what position could he hold in the firm and still not hold a license?" she said.

Published on October 28, 1999

injersey.com

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To: Jeffrey S. Mitchell who wrote (5)11/2/1999 9:47:00 PM
From: Jeffrey S. Mitchell
   of 79
 
Re: 10/28/99 - Online penny-stock deals believed linked to killings

Online penny-stock deals believed linked to killings

Published in the Asbury Park Press 10/28/99

By SHERI TABACHNIK

FREEHOLD BUREAU

THE EXECUTION-style slaying of two penny-stock promoters in Colts Neck was somehow connected to the men's online business, and they probably were killed by someone they knew, Monmouth County Prosecutor John Kaye said yesterday.

MICHAEL GOLDFINGER photo Investigators carry out files and computer equipment from the home in Colts Neck where two men were slain late Monday or early Tuesday. Business data files in the computers may provide a clue as to who shot the men.

No arrests have been made, but authorities are questioning a Clifton man who was the third partner in the Internet stock business with the slain men, Alain Chalem and Maier Lehmann, Kaye said. He declined to identify him.

But Kaye also said no one connected to the victims has been ruled out as a suspect except Jesse Scarola, the ex-husband of Chalem's housemate, Kimberly Scarola.

The prosecutor did not explain why he thought the murders were related to the Internet stock business, but said his office had some leads. He said the crime scene led him to believe the victims knew their killer.

Chalem, 41, and Lehmann, 37, were found at 1 a.m. Tuesday in the dining room of the home at 3 Bluebell Road, where Chalem lived with his girlfriend, Kimberly Scarola, 39, and her 13-year-old son. Mother and son were away when the killings occurred.

The victims were found face down on the marble floor, cellular phones a few inches from their bodies. A nearby table had business papers spread out, indicating they might have been working.

There were signs of a struggle, Kaye said.

"I don't think this was a random stop by," the prosecutor said. "They knew them."

A source familiar with the investigation said detectives think there might have been more than one killer.

Chalem, Lehmann and the Clifton man were partners in a Web site managed in Hungary and registered in Panama, www.stockinvestor.com, Kaye said. The business, run out of Chalem's house, hawked small-cap businesses and new stock listings.

The men sent voluminous e-mailings to potential investors and were compensated by receiving stocks at discounted fees, he said. Once investors bought the stock and the price rose, the men would sell their shares, Kaye said. Registering the Web site in a foreign country kept them free of SEC scrutiny, he said.

Lehmann, whose nickname was "Dr.," was a defendant in a penny-stock case the SEC brought against Electro Optical System Corp. last year. The corporation's stock rose from 50 cents to over $5 in one day. The SEC said defendants in its lawsuit distributed false information about the company in news releases and Internet newsletters.

Late yesterday, the prosecutor's office obtained a search warrant so they could remove numerous computers from Chalem's house and duplicate the hard drives, Kaye said.

Meanwhile, a county medical examiner performed an autopsy on Lehmann, who was married and the father of five children. Results revealed that Lehmann was shot once in the leg and three times in the head, the prosecutor said. A county medical examiner is expected to conduct an autopsy on Chalem today.

Kaye said that it appeared that Chalem was sitting in a chair when struck with the first of numerous shots. One of the shots was a contact wound to his left temple, Kaye said.

Detectives, who dusted the entire residence for fingerprints, found bullets and casings in various areas of the house, which was sparsely furnished, Kaye said.

The bodies were discovered by two friends of Chalem's who arrived at 1 a.m. A source identified one of the men as Allen L. Conkling, Fort Lee. The other was not identified. Kaye said the friends got together frequently and it was not unusual for one of them to spend the night at the Bluebell Road home.

The two visitors, who spent Monday working at a North Jersey tanning salon one of them owns, had been in touch with Chalem many times during the day, Kaye said.

Their last conversation with him was at 8:30 p.m., the prosecutor said. After that, Chalem no longer answered their calls, so the men decided to drive to Colts Neck.

They found the bodies, called 911, and departed, frightened the killer or killers might still be there. They waited for police in their car at the end of the street.

Chalem had told his friends that he planned to drive to Tennessee Tuesday to meet a friend who was chartering a plane to Fort Lauderdale, Fla., so he could vacation with Scarola at the couple's condominium, the prosecutor said.

Scarola, who was in Florida when Chalem was shot, had left Colts Neck on Friday, Kaye said. Her son was staying with his father in Staten Island, N.Y., Kaye said.

"This is an unusual killing," Kaye said. "There are other agencies interested in this case."

Along with the prosecutor's office, state police, Colts Neck police and other law enforcement agencies are participating in the investigation, said Kaye. He refused to identify the other agencies.

The Bluebell Road home is owned by Scarola's father, Russell Candela of Brooklyn and East Hampton, N.Y. He purchased the estate in December for $1.1 million. His daughter, grandson and Chalem moved in during the late spring and early summer.

Chalem, whose previous address is Hampton Bays, N.Y., owned Allen's Acres, a motel in that town.

Prior to that, he was part owner of Heartbreak Hotel near the Hunter Mountain ski area in the Catskills. One of the men who found his body Tuesday was his partner in the hotel, Kaye said. Heartbreak Hotel burned down in November 1994.

Sheri Tabachnik: (732) 863-1500, Ext. 7751

Published on October 28, 1999

injersey.com

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To: Jeffrey S. Mitchell who wrote (6)11/2/1999 9:50:00 PM
From: Jeffrey S. Mitchell
   of 79
 
Re: 10/28/99 - Two who pitched stocks on Internet are killed execution-style

October 28, 1999

Two who pitched stocks on Internet are killed execution-style

They were shot at an estate in Colts Neck, N.J. Their business probably figured in the motive, police said.

By Mike Madden

INQUIRER SUBURBAN STAFF

COLTS NECK, N.J. - Two men who ran an Internet site promoting over-the-counter stocks were killed Tuesday night at the mansion where one of them lived, in an execution-style slaying that left investigators baffled.

Alain Chalem, 41, and Mayir Lehmann, 37, of Woodmere, N.Y., were found early yesterday by friends, lying facedown in the marble foyer of the house on a 16-acre estate that Chalem shared with his girlfriend, Monmouth County Prosecutor John Kaye said. Both men had been shot several times in the head. The men's cellular phones were lying inches from their hands.

"In this county, there are about a dozen homicides a year, and they are not 'whodunits,' " Kaye said. "This is an unusual killing."

Authorities said the killing had something to do with the Internet business - www.stockinvestor.com <http://www.stockinvestor.com> - where the men pitched penny stocks over a mass e-mail list, receiving commissions from securities firms. The Web site, which offers free subscriptions to the mass e-mails, was registered in early 1997 to a post office box in Panama, according to Internet-domain name records.

Exactly how the killing related to the business, however, was uncertain.

"It doesn't make any sense to kill somebody if you were swindled and want your money," Kaye said. "If you want your money, you terrorize them, you threaten them, you beat them up, and you get your money. You don't shoot them to pieces."

The friends who found the brokers had come from North Jersey to spend the night at Chalem's house in Colts Neck, about 10 miles northwest of Asbury Park, Kaye said.

They last spoke to the two about 7:30 Tuesday night and called frequently between 8 p.m. Tuesday and 1 a.m. yesterday, when they arrived in Colts Neck to find the mansion's gates open, the front door unlocked, and Chalem and Lehmann dead on the floor, Kaye said.

Chalem's girlfriend, Kimberly Scarola, 39, who lived with Chalem and her 13-year-old son, Jeffrey, had gone to Fort Lauderdale, Fla., days before the killing, Kaye said. Friends told police that Chalem had planned to drive to Tennessee and then fly to Florida to meet Scarola.

Investigators have ruled out Scarola's former husband as a suspect, but they are looking at nearly everyone else involved with the victims, Kaye said.

It appeared that whoever killed the men immobilized them first, shooting them in the head only after ensuring that they could not run away, Kaye said. There was no sign of forced entry to the house.

Chalem was shot once in the chest and then five times in the head. Lehmann was shot once in the leg and then three times in the head.

The house in Colts Neck belongs to Russell Candela of Brooklyn, N.Y., Scarola's father, authorities said.

A man who answered the phone at Candela's house declined to comment yesterday afternoon.

"This is a definite 'whodunit,' " Kaye said. "In the majority of homicides, we have a pretty clear-cut idea. Even if we can't prove who did it right away, we at least have a pretty good idea who did it. This is very different."

This article contains information from the Associated Press.

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To: Jeffrey S. Mitchell who wrote (7)11/2/1999 9:52:00 PM
From: Jeffrey S. Mitchell
   of 79
 
Re: 10/28/99 - Deaths of Stock Promoters Put Focus on Web Site

Deaths of Stock Promoters Put Focus on Web Site

The shooting deaths of two online stock promoters in New Jersey is putting a spotlight on the murky world of penny-stock promotion.

This article was prepared by Wall Street Journal staff reporter Deborah Lohse, and Jason Anders and Aaron Elstein of The Wall Street Journal Interactive Edition.

Two men who prosecutors say ran a penny-stock promotion Web site, Stock Investor, were found shot to death in Colts Neck, N.J. Local police said the two men, Alain Chalem, 41 years old, and Maier Lehmann, 37, were found early Tuesday in the estate Mr. Chalem shared with a female friend.

Details about the apparent murders, including any suspects being considered by Monmouth County Prosecutor John Kaye, are unclear. Federal investigators also are looking into possible organized-crime connections to the deaths.

Manipulation Case

Mr. Lehmann already was well-known to some securities regulators, and reporters, as both a would-be informant on penny-stock manipulators and as an alleged culprit in a penny-stock manipulation case.

Several years ago, Mr. Lehmann began a failed crusade of sorts to become an informant into the world of penny stocks. He sought out New Jersey securities regulators and reporters, including one from The Wall Street Journal, in an effort to expose tactics of "lower-tier underwriters" of stocks, he said. He told people along the way that he had also been in contact with the U.S. Attorney's office and with the U.S. Securities and Exchange Commission and the National Association of Securities Dealers.

To further his apparent crusade, Mr. Lehmann wrote a 10-page, single-spaced summary of how such underwriters use unregistered foreign shares known as "Regulation S" stock to skirt U.S. securities rules. He outlined how investors could buy such shares abroad at steep discounts, then have unscrupulous firms bring the shares back to the U.S., run them up in price by finding unsuspecting U.S. investors, then unload them for their own profit. He named several firms and stocks that he said had been manipulated in the past, alleging that the firms were secretly run by former stockbrokers who had been banned from the securities industry.

Mr. Lehmann said in one of several interviews that he had been an investor and business associate of at least one such firm, which never paid him for his work. "I'm kind of a woman scorned," he said.

An attorney with the U.S. attorney's office in New York, as well as representatives from the SEC and the NASD each declined to confirm or deny parts of his account relating to his alleged conversations with them.

Seeking a Motive

Robert Honecker, second assistant prosecutor in Monmouth County, N.J., said investigators are looking into the financial dealings of the two men for any possible link to a motive in the shooting.

"That is under review... . Their operation of that Web site is being taken into consideration [but], again, we're at the very beginning of the investigation," Mr. Honecker said. "Certainly, someone who may have lost money is going to be considered a potential suspect," he said.

Between 1994 and 1996, Mr. Chalem worked at brokerage firm A.S. Goldmen in New York (no relation to Goldman Sachs Group Inc.), which was indicted in July in New York on charges connected with stock manipulation, forgery and illegal trading. A.S. Goldmen has denied the accusations, and Mr. Chalem wasn't named in those charges.

Mr. Lehmann, who apparently used a variety of spellings for his name, agreed to pay $630,000 to federal regulators, without admitting or denying wrongdoing, as part of a stock-manipulation case brought by the U.S. attorney's office and the SEC, it was announced in January. The case, which is continuing against many of the accused parties, charges more than 19 people with aiding a scheme to profit illegally from Regulation S shares.

Stock Recommendations

Stock Investor is similar to many other Web sites that dispense stock recommendations on penny stocks. The site, which was still accessible and functioning on the Internet Thursday, includes financial information and news releases on small stocks and collects e-mail addresses from visitors of the site that were used to send monthly "buy" recommendations.

For example, just this month, Stock Investor distributed a "buy" recommendation on Internet Solutions for Business Inc., an Internet-service provider in London, prompting an explosion in trading volume on the NASD's OTC Bulletin Board service and a surge in the penny stock's price. The stock, trading around $5 early in the month, jumped to $8.75 days after the e-mail alert before falling back.

A person who answered the phone at Internet Solutions' headquarters declined to comment. "I'm not allowed to give out any information about the company," said Glen Monks, who identified himself as a network analyst. He referred all questions to Chief Executive Lawrence Shaw, who didn't return messages.

Stock Investor recommends two stocks on its Web site, Global Datatel Inc. and BigHub.com Inc., two other companies whose shares are quoted on the OTC Bulletin Board. But executives for those companies said they have no idea how they came to be featured on the site.

"This is the first I've ever heard of Stock Investor. A shareholder called me this morning and told me we were on the site," said Richard Baker, chief executive officer of Global Datatel, in Delray Beach, Fla.

Frank Denny, chairman of BigHub, in San Antonio, said he, too, had never heard of the site, and was unfamiliar with Messrs. Chalem and Lehmann.

-- Rebecca Buckman and Charles Gasparino contributed to this article.

interactive.wsj.com

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To: Jeffrey S. Mitchell who wrote (8)11/2/1999 9:53:00 PM
From: Jeffrey S. Mitchell
   of 79
 
Re: 10/28/99 - Probers Seek Leads In Slayings of Brokers

Thursday, October 28, 1999

Probers Seek Leads In Slayings of Brokers

By MICHELE McPHEE

Daily News Staff Writer



s the families of two stockbrokers gunned down execution-style in the foyer of a posh New Jersey estate early Tuesday mourned their deaths, investigators scrambled to figure out who killed the men and why.

The bodies of Alan Chalem, 41, and Mayir Lehmann, 37 ? two men who dealt in penny stocks with their Israel-based Web site stockinvestors.com ? were found in the lavish home of Chalem's girlfriend in Colts Neck just after 1 a.m. on Tuesday.



One of two bodies found inside a N.J. home is removed Tuesday afternoon.

Lehmann, who was shot once in the head, was clutching a cell phone in his hand. Another cell phone was found near Chalem's body, which was riddled with bullets, Monmouth County Prosecutor John Kaye said. Investigators are checking those records, he said.

"It looked to detectives like he [Chalem] tried to get up several times and was shot several times," Kaye said at a news conference, "whereas Lehmann apparently died from one gunshot wound to the head, execution-style."

Lehmann, who lived in the tony Long Island community of Woodmere with his wife, Tammy, will be buried today, a family spokesman said.

"No one can talk to you. We are all in mourning here," said the spokesman, a relative who would not give his name.

"We have no idea what happened."

Chalem, who lived with his girlfriend, Kimberly Scarola, at the estate, will also be buried today. Scarola has been vacationing in Fort Lauderdale, and her 13-year-old son was with his father, Kaye said.

Kaye said his office was not the only law enforcement authority investigating the slayings at the 16-acre estate at 3 Bluebell Lane, but he would not elaborate.

Investigators have combed the cars parked at the home, and searched a suitcase found in the trunk of Lehmann's rented gray Dodge, Kaye said.

The contents of the suitcase were not revealed.

"This is a definite whodunit," Kaye said.

mostnewyork.com

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To: Jeffrey S. Mitchell who wrote (9)11/2/1999 9:54:00 PM
From: Jeffrey S. Mitchell
   of 79
 
Re: 10/28/99 - Stock Slaying Baffles Police

Stock Slaying Baffles Police

No Answers Yet in Execution-style Slaying of Stock Promoters

Scene of a double killing of two stock brokers, in Colts Neck, N.J. The two men, Alan Chalem and Mayir Lehmann, were found shot to death in the dining room of the mansion Tuesday. (Jeff Zelevansky/AP Photo)

By Martha Raffaele

The Associated Press

C O L T S N E C K, N.J., Oct. 28 ? Two Internet penny stock promoters found shot to death had ties to ?shady? business dealings, which may ultimately have led to their execution-style killings, a prosecutor said.

Alain Chalem, 41, and Mayir Lehmann, 37, were found early Tuesday face down on the bloodsained marble floor of the estate Chalem shared with his girlfriend and her 13-year-old son.

Though investigators have not pinpointed a motive or suspects, Monmouth County Prosecutor John Kaye said the attack likely was at least partly tied to the pair?s penny stock Web operation, www.stockinvestor.com, or other ventures.

?It was probably related to the victims? business activities,? Kaye said, ?and the killer or killers feared something else more than the loss of money.?

Stockbroker Charged Last Year

The Securities and Exchange Commission last year charged Lehmann and other defendants with distributing false information about companies after Electro Optical System Corp. stock rose from 50 cents to more than $5 per share in one day.

Investors eventually lost at least $10 million in that scheme, authorities have said. Lehmann agreed in January to pay $630,000 in penalties.

Between 1994 and 1996, Chelam worked at the brokerage A.S. Goldman, which was indicted in July in New York on charges connected with stock manipulation, forgery and illegal trading. The firm has denied the accusations, and Chelam was not named in those charges.

Web Site Promoted Business

The men?s Web site used mass e-mails to promote penny stocks to prospective investors. In exchange, the partners received commissions or discounted stock from securities firms. The Web site was registered in Panama and managed in Hungary.

?Penny? or ?micro-cap? stocks are cheap, highly speculative securities that are vulnerable to investor manipulation. Authorities suspect the victims? Web site was based overseas to avoid SEC scrutiny. Kaye called the men?s business practices ?shady.?

Investigators believe at least two gunmen attacked the men late Monday while they were reviewing business papers in the $1.1 million home. Chalem and Lehmann were first crippled by the gunfire, then shot point-blank in their heads, authorities said.

Chalem was shot once in the chest and five times in the head, while Lehmann, of Woodmere, N.Y., was shot in the leg and once in the back of the head, Kaye said. Their cellular telephones were inches from their hands, and they were still ringing on Wednesday.

?People are still calling these people, and we?re answering the phone,? Kaye said.

No Signs of Burglary

The home?s wrought-iron gates were open and its front door unlocked, but there were no signs of burglary, Kaye said.

Kaye said the ex-husband of Chalem?s girlfriend has been eliminated as a suspect and there are few leads, no suspects and no murder weapon.

Chalem had lived on the 16-acre property for up to eight months with his girlfriend. Her father owns the home in this small, wealthy community about an hour from New York City.

The friends who found the bodies said that Chalem had planned to drive to Tennessee and then charter a plane to Florida to meet his girlfriend, authorities said.

The friends told authorities they had talked with both Chalem and Lehmann throughout the day on Monday, then could not reach them later that night.

abcnews.go.com

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To: Jeffrey S. Mitchell who wrote (10)11/2/1999 9:59:00 PM
From: Jeffrey S. Mitchell
   of 79
 
Re: 10/29/99 - Lab tests 10 bullets; police hope to learn if 2 killers hit 2 slain men

Lab tests 10 bullets; police hope to learn if 2 killers hit 2 slain men

Published in the Asbury Park Press

By AMY ZURZOLA

STAFF WRITER

WITHOUT A WEAPON or a suspect in custody, investigators are counting on forensic tests on bullets taken from the bodies of two stock promoters to tell whether both were shot with the same gun.

Results of an autopsy performed yesterday on Alain Chalem, 41, show he was shot six times, once in the chest and five more times in the head and neck, Second Assistant Monmouth County Prosecutor Robert Honecker Jr. said.

Chalem's business partner, Maier Lehmann, 37, was hit by four bullets, and all appear to be from the same caliber semiautomatic weapon. Honecker declined to say what caliber. He would not say exactly how many shots had been fired.

The two were gunned down inside a lavish Colts Neck mansion Monday night or very early Tuesday.

Prosecutor John Kaye has said he believes more than one shooter may have been involved. The ballistics tests being performed at the state police crime lab will help make that determination.

The FBI and the Securities and Exchange Commission have joined the prosecutor's office in investigating what happened inside the sprawling $1.1 million house at 3 Bluebell Road, Honecker said. Investigators are checking out several possible leads, but for now, the case that shocked the affluent community with its violence remains a "whodunit."

"We're at the very beginning stages of this investigation, and we're taking it one step at a time," Honecker said. He did not rule out involvement by foreign authorities.

The Web site the two men operated, which touted cheap stocks, was registered to a post office box in Panama, and the man listed as the site's administrator, Moos Gabor, is in Budapest, Hungary. Lehmann, whose funeral was held yesterday at a Long Island chapel, is part of a family that includes well-regarded German rabbinical scholars.

The men's bodies were found by two acquaintances in a dining room that sits to the left of a large center hall in the colonial-style mansion, and bullets and shell casings were found in that area. Search warrants are being sought to allow detectives to retrieve nearly 100 voice-mail messages left on the two victimes' cellular telephones, which were found near their bodies, Honecker said.

One person -- Jesse Scarola, the ex-husband of Chalem's fiancee, Kimberly -- has been ruled out as a suspect in the slayings. Kimberly Scarola, who lived with Chalem and her 13-year-old son at the house, was in Florida at the time of the shootings. Honecker would not discuss why Jesse Scarola was ruled out, or why any others close to the dead men were not.

The men's work together relied on the volatile combination of the Internet and the stock market, and so far, the only theory behind the shootings Kaye has publicly discussed is a business-related transaction or relationship gone bad.

Investigators would not discuss the identity of a third business partner whom they questioned.

The Web site, www.stockinvestor.com, touted new stock listings and small-cap businesses. The men also sent out mass e-mail messages talking up the stocks to potential investors, and received discounted shares in return. Once investors bit, driving up the stock prices, the men sold their shares.

Registering the Web site outside the United States kept the operation free of SEC scrutiny, but some of Lehmann's past business dealings didn't fare so well.

An SEC case against a company connected to Lehmann was delayed this year pending the outcome of a criminal investigation, a U.S. attorney's office spokesman said yesterday.

"We moved to stay a narrow part of the SEC case, which was granted. The defendants then moved to stay the entire action, in light of a parallel federal criminal investigation," said Herbert Hadad, a spokesman for the Southern District of New York U.S. Attorney's Office. He declined to elaborate.

According to the SEC records, the case was delayed prior to May 19, 1999.

Lehmann was listed as a primary defendant in the case against Electro Optical System Inc., a penny-stock company which rose from 50 cents to over $5 in one day. The SEC said defendants distributed false information about the company in news releases and over Internet newsletters, then made a hefty profit from the inflated price.

Lehmann settled with the SEC after paying $630,000 to cover fines and his profit.

Amy Zurzola: (732) 922-6000, Ext. 4624, or at azurzola@app.com.

Staff writer Jason Method contributed to this story.

from the Asbury Park Press

Published on October 29, 1999

injersey.com

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To: Jeffrey S. Mitchell who wrote (11)11/2/1999 10:00:00 PM
From: Jeffrey S. Mitchell
   of 79
 
Re: 10/29/99 - Slain man's virtues extolled

Slain man's virtues extolled

Published in the Asbury Park Press

By SHERI TABACHNIK

STAFF WRITER

IT SHOULD have been the couple's 15th wedding anniversary. Instead, Tammy Lehmann and their five children yesterday buried Maier Lehmann, brutally murdered earlier this week.

MICHAEL GOLDFINGER photo The casket of slaying victim Maier Lehmann is loaded into a hearse yesterday after his funeral in Hewlett, N.Y.

Lehmann, 37, of Woodmere, Long Island, and his business partner, Alain Chalem, 41, of Colts Neck, were found shot to death Tuesday at the Bluebell Road home Chalem shared with his fiancee and her 13-year-old son.

The two victims were partners in an Internet penny stock company, and Monmouth County Prosecutor John Kaye has speculated their stock dealings were somehow related to their deaths.

Both had been involved in questionable stock transactions in the past, and Lehmann had been ordered to repay about $650,000 fraudulently taken from investors.

Despite his business dealings, when it came to his family and friends he was upfront and generous, according to many who attended his funeral yesterday.

Lehmann's wife and children held hands as they entered Boulevard-Riverside Chapels, Hewlett, N.Y. Along with other family members, they paused by the casket before taking their seats on the women's side of the Orthodox Jewish chapel.

Tammy Lehmann maintained her composure and comforted her young children during their tearful outbursts.

"Maier spoke the language of the heart," his rabbi said. "He was real deep. I wanted to become his best friend. I'm heartbroken."

A crowd of about 1,000 people who attended the 2:15 p.m. ceremony listened to the rabbi's remarks. About 600 sat and stood inside the chapel. The rest of the mourners heard the eulogy over a loudspeaker outside.

For about 20 minutes, Chaim Lehmann eulogized his late brother. He paused occasionally to wipe his tears and compose himself.

Any good fortune he had he shared, Chaim Lehmann said.

MICHAEL GOLDFINGER photo Mourners hug after yesterday's funeral for Lehmann, who lived in Woodmere on Long Island.

"Maier, we loved you dearly," Lehmann said. "You lit up everyone with joy. You were generous to a fault. We could always count on you for a laugh."

In addition to being an astute businessman and student of the Torah, Maier Lehmann was an accomplished painter, his friends said. He spent hours decorating the walls in his children's bedrooms with colorful drawings of animals and painting pictures that hang in his home.

As they stood in the parking lot waiting for the funeral procession to set out for the cemetery, some people said they thought Maier Lehmann was killed because he was in the wrong place at the wrong time.

Kaye thought his business dealings were involved.

Last year, Lehmann was a defendant in a penny stock case the SEC brought against Electro Optical System Corp. The corporation's stock rose from 50 cents to $5 in one day. The SEC said defendants in its lawsuit distributed false information about the company in news releases and Internet newsletters.

Lehmann, Chalem and an unidentified Clifton man were partners in a Web site managed in Hungary and registered in Panama, www.stockinvestors.com, Kaye said. The business, run out of Chalem's house, hawked small-cap businesses and new stock listings.

No arrests have been made in the double homicide, but detectives have leads, Kaye said.

Chalem's funeral is at 11:30 a.m. today at Gutterman-Musicant-Kreitzman Jewish Funeral Directors, Hackensack.

Published on October 29, 1999

injersey.com

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