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   PastimesWhodunit? Two Stockbrokers Murdered in Jersey; Reference


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To: Jeffrey S. Mitchell who wrote (64)5/20/2000 12:54:00 AM
From: Jeffrey S. Mitchell
   of 77
 
Re: 2/21/00 - Unsealed documents show flurry of legal arguments in Marchiano trial

Unsealed documents show flurry of legal arguments in Marchiano trial

Monday, February 21, 2000

By GINA EDWARDS, Staff Writer

The stockbroker gunned down gangland-style in New Jersey and speculation about Naples millionaire Anthony Marchiano's mob ties.

The Smith & Wesson .357 handgun Marchiano kept under his mattress at his Gordon Drive mansion and the handgun he carried in a briefcase.

The sophisticated taping machine in the master bathroom that authorities say Marchiano used to record phone calls with his stockbroker employees and conversations between his mother and twin brother.

The law enforcement officers in ski masks and full SWAT gear who drew their guns and frisked Marchiano at his home during an April 1998 raid.

All are fodder for legal arguments flying between prosecutors and defense attorneys in hundreds of pages of court documents recently unsealed in the A.S. Goldmen & Co. stock fraud case playing out in a Manhattan court.

Marchiano, owner of the defunct Naples brokerage A.S. Goldmen & Co., is charged with running a corrupt enterprise that prosecutors say cheated investors out of $100 million in numerous penny stock swindles.



Anthony Marchiano

The case, which includes 33 defendants with A.S. Goldmen ties who were indicted in July, is expected to go to trial this fall in Manhattan. Two Naples brokers were indicted in November 1998 and one has pleaded guilty.

Prosecutors and federal regulators say Marchiano ran a boiler room operation in Naples where stockbrokers made hundreds of phone calls to investors daily while fraudulently pitching stock in Stadium Naples - a twice-failed golf arena development that's also the subject of a separate federal bribery probe involving a Collier County commissioner.

Prosecutors charge that A.S. Goldmen manipulated small company stocks through so-called pump and dump manipulation schemes.

In some cases, the scheme worked like this, prosecutors say: The firm acquired large blocks of cheap stock in initial public offerings. Goldmen's high-pressure brokers would hawk the stock using false and exalted claims to investors to create demand for the stock and pump up prices. When the price was driven high enough, Goldmen insiders and their friends would dump the shares, selling at large profits. Meanwhile the dump created an unstoppable price slide and wiped out investors.

A.S. Goldmen defense attorneys have asked the court in motions to throw out evidence gathered in the April 10, 1998 search of Marchiano's Gordon Drive mansion, and the Goldmen brokerage offices in Naples and Iselin, N.J.

Marchiano's attorney, Buddy Parker, called the search an unconstitutional "fishing expedition" by law enforcement officers in court papers.

Assistant Manhattan District Attorney Kevin Suttlehan counters in court papers that the sweeping nature of the alleged stock crimes - which spanned six years and percolated through all facets of the brokerage's day-to-day operations - warranted a sweeping search for evidence.

Court papers referencing the evidence - thousands of pages of documents, audio tapes, video tapes, surveillance photos, and computer records - show the complexity of the case.

In October, Judge Leslie Crocker Snyder ordered court papers sealed and reprimanded Marchiano attorney Parker for fingering a potential informant - and possibly jeopardizing the informant's safety - in court documents.

Crocker lifted the sealing order, which kept documents out of the public view until their review by the court, earlier this month at the urging of defense attorneys.

Claims of mob ties

Defense attorneys claim in court papers that the judge's sealing order, in effect, gagged them from counteracting publicity linking brokers found executed in a Colts Neck, N.J. mansion to A.S. Goldmen & Co.

George Arnett, attorney for A.S. Goldmen officer Stuart Winkler, said prosecutors told defense attorneys that the two dead men - one a former Goldmen employee - did not assist prosecutors in the A.S. Goldmen case despite press reports citing unnamed law enforcement sources declaring the opposite.

Arnett further states that slain stock promoter Al Chalem didn't work at A.S. Goldmen. But records from the National Association of Securities Dealers list Chalem as an employee of A.S. Goldmen from January 1994 to December 1995.

Assistant District Attorney Suttlehan counters in court papers that his office gave defense attorneys papers showing that Chalem had prepared to register as a broker at Goldmen and his application bore Winkler's signature.

Arnett states that prosecutors, in a May meeting before the July indictments came down, told Goldmen defense attorneys that the case was a securities case, but that one or more defendants might have "tenuous associations" with organized crime figures.

Arnett complains that prosecutors have let press publicity about "mob overtones" go unchecked.

But prosecutor Suttlehan noted that Marchiano and other defendants have been charged with enterprise corruption under New York's Organized Crime and Control Act. The only "mob overtones" - in the sense of traditional families - have come from Marchiano's attorney Parker in statements to the Naples Daily News, Suttlehan said in court papers.

Parker told the Naples Daily News in June that Marchiano is a victim of mob short-selling meant to collapse A.S. Goldmen house stocks. The statement came in June when a Naples Daily News reporter questioned Parker about a dozen former Goldmen brokers named in separate federal mob-on-Wall Street indictments. One former Goldmen broker, who has now pleaded guilty, was named as a ringleader for a Gambino family stock scheme conducted after he left Goldmen.

"Ultimately, the real question is not whether there is a 'mob' connection but rather a perception of a connection. And that perception derives entirely from the conduct of Mr. Marchiano and his lawyer, who chose to send a 'we know where you live' message to possible informants," prosecutors say in court documents.

Suttlehan said defense attorneys have gratuitously used legal papers to publicize their case and attempt to intimidate potential witnesses.

Search and Seizure

Parker, Marchiano's attorney, argues in court papers that law enforcement officers mistreated Marchiano and his family during the search of his beachfront mansion at 3630 Gordon Drive.

Dressed in black, wearing ski masks and outfitted in SWAT gear, law enforcement officers pushed Marchiano to the floor, stepped on him and put a gun to his head before pushing him to the wall and frisking him, Parker claims in court papers.

Marchiano's wife, Maria, who has also been indicted, and Marchiano's then 8-year-old son were grabbed at gunpoint during the search, Parker states in court papers.

Prosecutors counter that such actions were justified, within the law, and meant to protect both law enforcement officers and the Marchianos so the search could be executed.

"The most disingenuous claim is that the execution of the search warrant endangered Marchiano's son," prosecutors say. "The Marchiano family makes this claim despite keeping handguns laying around the house, including under the paternal mattress."

Law enforcement officers seized the .357 Smith & Wesson handgun under the mattress and another handgun found in a briefcase on a bedroom table and later returned them. The guns were seized although they weren't in the scope of the warrants and no probable cause existed that any violent crimes occurred, Parker claims.

Parker asserts that law enforcement officers improperly seized other items like video and audio cassette tapes from the Marchiano home that had nothing to do with Goldmen business.

But prosecutors contend police seized audiocassette tapes that the Marchianos used to record conversations with their own brokers on a sophisticated taping machine hidden in the master bathroom of their home.

The machine was capable of automatically recording all incoming and outgoing calls to the home, including between Marchiano's mother and brother Salvatore regarding A.S. Goldmen related business, prosecutors say.

In an attack on hearsay evidence used to justify the search warrants, Parker reveals in court documents that Stadium Naples founder Bill Rasmussen spoke to prosecutors in January 1998 - three months before the raid and subsequent collapse of the golf stadium deal.

The search warrant application papers have not been publicly released so circumstances surrounding any discussions between Rasmussen and prosecutors before the April raid aren't clear.

Goldmen defense attorneys have asked prosecutors to return thousands of pages of material. But prosecutors contend there's no point in returning documents to a defunct business.

Prosecutors say another reason not to give back documents: The grand jury has extended its term to hear evidence regarding others who may be indicted as part of the continuing investigation.

Winkler, Marchiano and the corporation have been indicted for destroying documents and suborning perjury.

Prosecutors quote in the documents Winkler's tape-recorded statements in which he says he has "a track record" of hiring the best lawyers in the country to get his way, partly through drawn out court battles.

"I go after the people and that's it, and they, and they have to fold up because the person who has the best lawyers and the most amount of money always wins against the people who have lesser lawyers and lesser amounts of money."

Copyright ¸ 2000 Naples Daily News. All rights reserved.

naplesnews.com

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To: Jeffrey S. Mitchell who wrote (65)5/20/2000 12:55:00 AM
From: Jeffrey S. Mitchell
   of 77
 
Re: 3/18/00 - A.S. Goldmen: Ex-stockbroker extradited to answer charges

A.S. Goldmen: Ex-stockbroker extradited to answer charges

Saturday, March 18, 2000

By GINA EDWARDS, Staff Writer

It took eight months and help from New Scotland Yard to do it.

But Manhattan District Attorney Robert Morgenthau didn't let the Atlantic Ocean and a morass of international bureaucracy stop him from hauling a former Naples stockbroker into court as part of his ongoing fraud probe of the defunct Naples brokerage A.S. Goldmen & Co.

Christopher Brand, a 33-year-old British citizen, appeared in a Manhattan court Friday after crossing the Atlantic to answer charges he swindled investors while hyping the failed Stadium Naples golf arena during his stint as a broker at Goldmen's Naples office.

Brand's court appearance comes eight months after a grand jury indicted him and Morgenthau initiated an extradition proceeding that required help from the U.S. Justice Department, State Department and British authorities.

Brand, a resident of Swindon, England, didn't have an attorney and is being held in custody until his arraignment Tuesday.

In July, a Manhattan grand jury indicted A.S. Goldmen owner Anthony Marchiano, a Gordon Drive resident, and 32 others, charging them with a range of securities crimes.

A total of 11 employees of Goldmen's Naples office have now been charged as part of the New York case. Two Naples brokers were charged in 1998.

Prosecutors say Marchiano ran a corrupt enterprise that bilked thousands of investors out of nearly $100 million. If convicted of enterprise corruption under New York's Organized Crime and Control Act, Marchiano could face up to 25 years in prison.

Prosecutors say A.S. Goldmen held itself out as a legitimate firm, but systematically broke securities laws and regulations to steal from unsuspecting customers. The firm is accused of manipulating the stocks of 10 small companies, among them Millennium Sports Management Inc., a partner in Stadium Naples.

Marchiano, 38, has denied wrongdoing. He's expected to go on trial in the fall.

Here's how prosecutors say the fraud worked:

A.S. Goldmen acquired millions of shares of Millennium Sports Management Inc. at a cut-rate price. The firm's boiler room of brokers and cold callers then made gross misrepresentations to customers about the golf stadium to hype Millennium stock and sell shares to unwitting customers.

For example, prosecutors say some brokers told telephone customers they could see the North Naples golf stadium under construction from their Fifth Avenue South office. In fact, Stadium Naples - touted as a spectator arena for golf and slated for land next to Interstate 75 - never got off the ground. At the time, Stadium Naples had collapsed once before and was the subject of a bribery investigation involving a Collier County commissioner.

Goldmen brokers didn't tell customers that New Jersey-based Millennium had once filed for bankruptcy reorganization and was in danger of failing. All the while, brokers made exorbitant commissions on the stock.

In Brand's case, prosecutors say he started as a cold caller at A.S. Goldmen in July 1997 and eventually worked his way up to a position as a licensed broker. He left Goldmen in April 1998.

Prosecutors say Brand cold-called one of his victims - a 75-year-old widower from Long Island, N.Y., who lives on a fixed income - on Oct. 7, 1997, and touted Millennium's partnership interest in Stadium Naples. That call falls before Millennium's public announcement about its Stadium Naples partnership.

Brand then turned the victim over to his broker colleague who sold him more than $100,000 of Millennium stock, which traded on the NASDAQ under the symbol MSPT, over the next several months, prosecutors say. Today the stock is virtually worthless.

Prosecutors say Brand's other victims include a Brooklyn resident who received relentless phone calls and eventually bought $2,480 worth of Millennium. Brand also lied to a Georgia resident who eventually bought $10,000 worth of Millennium stock from another broker, prosecutors say.

Brand is charged with one count of grand larceny, punishable upon conviction by up to seven years in prison, and five counts of securities fraud, punishable upon conviction by up to four years in prison. He is also charged with attempted grand larceny.

In June, federal prosecutors in Tampa reopened a bribery investigation of Stadium Naples at the request of Gov. Jeb Bush.

Collier Commissioner John Norris has been charged with civil influence-peddling charges by a state ethics panel in connection with his no-money-down stake in Stadium Naples. Norris denies wrongdoing and plans to fight those allegations at a May hearing.

Copyright ¸ 2000 Naples Daily News. All rights reserved.

naplesnews.com

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To: Jeffrey S. Mitchell who wrote (66)5/20/2000 12:57:00 AM
From: Jeffrey S. Mitchell
   of 77
 
Re: 4/20/00 - A.S. Goldmen: Broker linked to Naples firm pleads guilty to corruption

A.S. Goldmen: Broker linked to Naples firm pleads guilty to corruption

Thursday, April 20, 2000

By GINA EDWARDS, Staff Writer

Manhattan prosecutors have announced the first of what could be a number of guilty pleas involving defendants in the $100 million A.S. Goldmen & Co. stock fraud case.

The guilty plea Tuesday indicates further links between employees at Goldmen ? the defunct brokerage owned by indicted Naples millionaire Anthony Marchiano ? and the brokerage Meyers Pollock Robbins Inc., an out-of-business firm with ties to the Genovese and Bonanno organized crime families.

Michael Cilmi, of Brooklyn, pleaded guilty Monday to two counts of enterprise corruption for conducting criminal activities while working at each brokerage at separate times.

SPECIAL REPORT

For more on our coverage of A.S. Goldmen and the continuing trial and investigation, click here.


Cilmi faces between eight and 25 years in prison on each count at sentencing, scheduled in June before Manhattan Judge Leslie Crocker Snyder.

A total of 36 defendants with ties to Goldmen, 11 of them employees of Goldmen's Naples office, have been charged in the New York case brought by Manhattan District Attorney Robert Morgenthau.

Prosecutors say Marchiano, who denies wrongdoing, ran a corrupt enterprise at A.S. Goldmen that bilked thousands of investors across the country out of nearly $100 million. Prosecutors have frozen assets of defendants to pay back cheated customers upon conviction.

Marchiano ran a boiler-room operation in Naples where brokers spent hours on the phone hyping stocks before the firm closed in late 1998. At various times, the defunct firm also had offices in New York and New Jersey. The alleged Goldmen criminal enterprise is accused of manipulating the stocks of 10 small companies, among them the defunct Stadium Naples golf arena.

Brokers are charged with numerous abuses that include manipulating share prices, lying to customers, refusing to sell shares, using bogus trading accounts, trading shares without customer permission to generate sales commissions, and concealing illegal conduct.

In his guilty plea, Cilmi admitted to those abuses while working as a manager of senior brokers in the Goldmen enterprise from 1992 to 1996.

The subsequent year, Cilmi worked at Meyers Pollock's office at 67 Wall St., the building where Goldmen at one time had an office.

Cilmi pleaded guilty to enterprise corruption for his role as a supervisor of the fraud at Meyers Pollock from August 1996 to June 1997.

The Manhattan district attorney says the Meyers Pollock criminal enterprise engaged in a coordinated fraud in which stock promoters bribed brokers to sell shares in their companies at inflated prices. The enterprise stole from customers and laundered money, prosecutors say.

A spokeswoman from Morgenthau's office, Barbara Thompson, said a number of defendants in the A.S. Goldmen case have reached plea agreements. Only two guilty pleas involving Goldmen brokers have been made public ? Cilmi's and former Naples broker Michael Lamarti.

Lamarti, who was indicted in 1998, has pleaded guilty to attempted enterprise corruption, a charge that carries a maximum sentence of four years. His sentencing is scheduled in May.

Thompson said there are a number of guilty pleas connected to the continuing Meyers Pollock investigation that have yet to be announced.

Regulators say A.S. Goldmen played a major role in the murky world of penny stocks where fraud costs investors an estimated $6 billion a year.

In recent years, prosecutors and regulators have coordinated attacks on organized crime's influence on Wall Street. But regulators say once they close down fraudulent firms, the rogue brokers scatter like cockroaches and set up shop anew.

While prosecutors haven't claimed that Goldmen brokers have mob ties, dozens of former A.S. Goldmen brokers have cycled in and out of mob-connected penny stock brokerages in the last decade, a computer records search by the Naples Daily News found.

And a dozen A.S. Goldmen alumni have been snared in federal mob-on-Wall Street indictments involving members of Italian and Russian organized crime families. One former A.S. Goldmen alumni pleaded guilty last year to running a stock scheme for the Gambino organized crime family after he left Goldmen.

The Daily News search found that at least 50 former A.S. Goldmen brokers have also worked at Meyers Pollock.

Last week, federal prosecutors in Manhattan brought securities fraud and commercial bribery charges against Meyers Pollock, the firm's former president and 11 stockbrokers.

A 1997 federal indictment linked Meyers Pollock with defendants that included "capos," or captains, in the Genovese and Bonanno organized crime families. Sixteen of the 20 defendants charged in the 1997 indictments pleaded guilty last year, and two others were convicted at trial.

The A.S. Goldmen case is expected to go to trial in the fall.

Last week, Snyder ordered Goldmen's chief financial officer, Stuart Winkler, to jail until he comes up with $1 million bail.

Winkler violated his bail agreement and failed to come up with collateral promised to a bail bondsman.

As of Wednesday, Winkler was still detained in a Manhattan jail.

naplesnews.com

Copyright ¸ 2000 Naples Daily News. All rights reserved.

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To: Jeffrey S. Mitchell who wrote (67)5/20/2000 12:58:00 AM
From: Jeffrey S. Mitchell
   of 77
 
Re: 4/29/00 - Daily News attorneys file suit for records in A.S. Goldmen case

Daily News attorneys file suit for records in A.S. Goldmen case

Saturday, April 29, 2000

By CATHY ZOLLO, Staff Writer

Lawyers for the Naples Daily News have filed a lawsuit against the Manhattan District Attorney's Office over records that office is withholding related to the A.S. Goldmen & Co. stock fraud case.

Prosecutors have refused several attempts by Daily News reporters to obtain copies of investigations that involve 36 defendants associated with the Naples-based firm. The suspects were indicted between November 1998 and July 1999.

The Goldmen case has received national attention, including in the Wall Street Journal and New York Times.

Daily News Editor Phil Lewis said he hadn't wanted to sue, but stonewalling by prosecutors forced the issue.

"We've tried for almost a year filing the requests that newspapers file for what we feel are public documents, and we're being denied at every turn. . .We think it's an important enough case involving a lot of people's money, and we think these records should be public."

Officials with the Manhattan DA's Office refused to comment on the lawsuit Friday because it is pending.

Daily News reporter Gina Edwards began requesting the information in May 1999 through a series of letters to the DA's office, citing New York's open records law.

In their response to Edwards, representatives from the DA's office contended disclosing the records would interfere with their ongoing investigation into activities at A.S. Goldmen, identify a confidential source and reveal criminal investigative techniques.

Bob Freeman, executive director of the New York Department of State Committee on Open Government, said prosecutors' claims don't stand up to the state's Freedom of Information Law.

"An agency has the ability to withhold records in certain instances," Freeman said. "But there must be identifiable harm based on the disclosure."

Exemptions to that law include the potential harm that the Manhattan DA's office is citing, but Freeman questioned that assertion.

"How could discovery possibly interfere if the records have been given to the defendant?" Freeman asked.

Discovery refers to records that prosecutors have assembled in a case; these documents are provided to defendants and their attorneys so they can prepare for a trial.

"The last thing you want to do is tell the bad guys what you intend to do and allow them to evade effective law enforcement detection," Freeman said. "But if the records have been distributed already to the defendant, it seems there would be no harmful effects of disclosure."

The 36 defendants include 11 employees of Goldmen's Naples office, associates of the firm and, in some cases, their wives and girlfriends.

Among those charged is Anthony Marchiano, owner of Naples brokerage A.S. Goldmen & Co. He was indicted in July on charges of running the corrupt stock enterprise that bilked thousands of investors around the country out of almost $100 million.

Marchiano is accused of running a boiler-room operation in Naples where brokers used high-pressure phone sales tactics to sell stocks until the firm closed in 1998. The defunct company also had offices in New York and New Jersey.

Among other criminal allegations, Marchiano and the 35 other defendants are charged with manipulating the stocks of 10 small companies, including the failed Stadium Naples golf arena venture.

Bruce Sanford, lead counsel for the Daily News in its case against the Manhattan DA, said Friday that he's confident of winning the case.

On the larger issue around freedom of information, Sanford said newspapers that sue in such cases act on behalf of the public to keep a light on government.

"The most important thing to remember is that newspapers . . . have to file cases like this as a surrogate for the public," he said. "This is important public information that the public deserves having, so when newspapers go to the expense to do this, the public ought to remember that."

Copyright ¸ 2000 Naples Daily News. All rights reserved.

naplesnews.com

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To: Jeffrey S. Mitchell who wrote (68)5/20/2000 1:00:00 AM
From: Jeffrey S. Mitchell
   of 77
 
Re: 5/1/00 - 2 former A.S. Goldmen brokers plead guilty

2 former A.S. Goldmen brokers plead guilty

Saturday, May 13, 2000

By GINA EDWARDS, Staff Writer

Two former A.S. Goldmen & Co. stockbrokers pleaded guilty Friday to reduced stock fraud charges arising from their employment at the Naples-owned firm that prosecutors say bilked investors around the country out of $100 million.

Christopher Brand and Paul Colontino were both allowed to plead to reduced charges under separate deals reached with prosecutors in the Manhattan District Attorney's Office in exchange for lighter sentences than had they gone to trial and been convicted.

Brand worked at A.S. Goldmen's Naples office from July 1997 to April 1998, and Colontino worked in the firm's Iselin, N.J., office.

Brand pleaded guilty to one count of attempted scheme to defraud and was sentenced to one year in prison by Manhattan Judge Leslie Crocker Snyder on Friday. He initially was charged with one count of grand larceny and five counts of securities fraud. He also was charged with attempted grand larceny.

Colontino pleaded guilty to enterprise corruption and faces between one and three years in prison at his sentencing July 7. In exchange for his plea, two counts of grand larceny, five counts of stock fraud, and six counts involving falsifying business records were dropped.

In July 1999, a Manhattan grand jury indicted A.S. Goldmen owner Anthony Marchiano, a Gordon Drive resident, and 33 others, charging them with a range of securities crimes including a "pump and dump" stock scheme involving Stadium Naples, a golf spectator arena development that was never built.

Brand was indicted in July, but didn't appear in court in Manhattan until March following a lengthy extradition effort to retrieve him from his hometown in Swindon, England.

A total of 11 employees of Goldmen's Naples office have been charged as part of the New York case. Two Naples brokers were charged in 1998.

Brand is the second Naples broker to plead guilty. Michael Lamarti pleaded guilty last year to attempted enterprise corruption but has yet to be sentenced. A total of four Goldmen brokers have now pleaded guilty.

Prosecutors say Marchiano ran a corrupt enterprise that bilked thousands of investors out of nearly $100 million. If convicted of enterprise corruption under New York's Organized Crime and Control Act, Marchiano could face up to 25 years in prison.

Marchiano, 38, has denied wrongdoing. He's expected to go on trial in Manhattan in the fall.

A.S. Goldmen held itself out as a legitimate firm, but systematically broke securities laws and regulations to steal from unsuspecting customers, prosecutors say. The firm is accused of manipulating the stocks of 10 small companies, among them Millennium Sports Management Inc., a partner in Stadium Naples.

Here's how prosecutors say the fraud worked:

A.S. Goldmen acquired millions of shares of Millennium Sports Management Inc. at discounted rates. The firm's boiler room of brokers then made gross misrepresentations to customers about the golf stadium to hype Millennium stock and sell shares to unwitting customers.

For example, prosecutors say some brokers told telephone customers they could see the North Naples golf stadium under construction from their Fifth Avenue South office. In fact, Stadium Naples ? slated for land next to Interstate 75 ? never got off the ground.

At the time, brokers failed to tell customers that Stadium Naples had collapsed once before and was the subject of the bribery investigation involving Collier County Commissioner John Norris, prosecutors say.

Last year, Gov. Jeb Bush asked federal prosecutors to reopen that Collier criminal bribery probe that resulted in no charges. Florida state investigators found that State Attorney Joe D'Alessandro bought stock in Millennium during his Stadium Naples probe from brokers at A.S. Goldmen. D'Alessandro has said the stock purchases didn't affect his probe.

Brand, 33, swindled Millennium investors including a 75-year-old widower on a fixed income and residents in Georgia and Brooklyn, Manhattan prosecutors said in March.

Millennium stock, which traded on the NASDAQ under the symbol MSPT, is virtually worthless today.

Colontino, 30, admitted lying to customers, scheming to control share prices, falsifying business records and refusing to let customers sell shares, prosecutors say.

He made specific reference in his guilty plea to Innovative Tech Systems Inc. and Wanderlust Interactive Inc., stocks Goldmen took public in initial offerings in 1994 and 1996, respectively.

Colontino also admitted paying an impostor to take his broker licensing exam and trading stocks through a dummy account in his wife's maiden name.

Copyright ¸ 2000 Naples Daily News. All rights reserved.

naplesnews.com

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To: Jeffrey S. Mitchell who wrote ()6/15/2000 7:42:00 AM
From: Arcane Lore
   of 77
 
Probe of unsolved murders in Colts Neck looks at fraud angle

Published in the Asbury Park Press 6/15/00

By JAMES W. PRADO ROBERTS
and PETER EICHENBAUMSTAFF WRITERS

A FEDERAL GRAND jury in Newark is investigating numerous people for stock fraud, tax evasion and other possible crimes in connection with two penny-stock promoters who were gunned down in a Colts Neck mansion last year.

The grand jury investigation -- which is looking only into the shooting victims' business dealings and not the murders -- centers on hundreds of business deals, worth millions of dollars, that also may involve money laundering and theft, two sources said.

The suspected illegal deals were conducted across the country and around the globe and included the manipulation of specific stocks at the expense of unwitting investors, the sources said.

The transactions under investigation were exposed in the wake of the Oct. 25 killings of Maier S. Lehmann, Woodmere, N.Y., and Albert Alain Chalem, Colts Neck, when an assailant or assailants used two guns to fire 10 bullets into the men and left them for dead in Chalem's dining room.

In other developments in the case, Chalem's longtime fiancee, Kimberly Scarola, and Lehmann's wife, Tamar, have been cleared as suspects, according to First Assistant Monmouth County Prosecutor Alton D. Kenney. And tests for dog DNA, which Monmouth County Prosecutor John Kaye had hoped would lead to an arrest, have failed to do so.

Nearly eight months after the killings, the investigators still have not narrowed the list of suspects, Kenney said.

The federal investigation focusing on the financial transactions began almost immediately after the killings and is being presented to the grand jury in Newark by Assistant U.S. Attorney John J. Carney. That investigation is separate from the Monmouth County prosecutor's office probe of the murders themselves.

Carney would not confirm or deny that he was conducting an investigation into the matter.

Chalem and Lehmann were involved in promoting inexpensive stocks on the Internet at the time of the killings, according to prosecutors, and their killing sent a shock wave through the investment world, which had considered itself immune to such violent crime.

But in recent years, Internet stock fraud has grown.

Yesterday, 120 people -- including members of all five of New York's mob families -- were indicted in Manhattan on charges of taking part in the largest securities fraud in U.S. history. Much of the fraud was conducted using the Internet to hype companies, some which were wrongly touted as "dot-com" companies poised to benefit from rising interest in Net stocks, the indictments and complaints charged.

Chalem, 41, and Lehmann, 37, also were involved in hyping stocks on the Internet. Prosecutors have said Lehmann and Chalem were partners in a Web site, www.stockinvestor.com, that was used to pitch low-price stocks, or penny stocks, to investors. The Web site, which is no longer available on the Net, was registered in Panama and managed in Budapest, Hungary.

The website promoted two companies at the time of the killings: Global Datatel Inc., a Delray Beach, Fla., company specializing in installing and operating computer network systems in South America, and BigHub.com Inc., an Internet search-engine and shopping-portal company based in San Antonio. Both are having financial difficulties.

It is not publicly known whether Chalem and Lehmann were financially involved in these companies.

Mark Vincent, a Freehold securities lawyer who represents Global Datatel, said he did not know if anybody in the company has been contacted by investigators.

A BigHub representative did not return a call yesterday.

Both Lehmann and Chalem had shady business associations.

Chalem had worked in the now-defunct brokerage house A.S. Goldmen, which has an office in Woodbridge. A Manhattan grand jury indicted the brokerage last summer on charges of running a criminal enterprise that bilked investors out of nearly $100 million. Chalem was not among the 33 indicted.

In 1998, Lehmann paid $630,000 to the federal Securities and Exchange Commission to settle charges that he helped illegally manipulate the stock of a small company that cheated unsuspecting investors of $12 million.

Since the killings, the county prosecutor's office has maintained that a business deal gone awry led to a "professional hit" motivated by revenge. Kenney, the assistant prosecutor, said the investigations were separated because the U.S. Attorney's Office is better equipped to deal with the possible international financial crimes in this case.

"The United States attorney's office in Newark is in cooperative effort with us in reviewing many of the financial areas concerning Mr. Chalem and Mr. Lehmann," Kenney said. "This has been ongoing from the early stages of the investigation."

Monmouth County continues to pursue leads to the killing but has not narrowed the list of potential suspects, Kenney said. While Scarola and Tamar Lehmann have been ruled out as suspects, Kenney said Tamar Lehmann was "initially hesitant to come forward." She since has been very cooperative and provided many helpful details in the case, Kenney said.

Once Tamar Lehmann cooperated with the authorities, Kenney said, he wrote a letter to the insurance company that held Maier Lehmann's life insurance policy clearing her as a suspect. That paved the way for the company to write a check to Tamar Lehmann. Kenney said the dollar val-ue of the insurance policy was "sub-stantial."

Her lawyer, Jack Arseneault, a promi-nent criminal trial lawyer based in Chatham, said Tamar Lehmann was always very willing to help the Mon-mouth County investigators. But be-cause she had learned that she might be a suspect, and because her insur-ance company would not issue a death benefit until she was cleared by the prosecutors as a suspect, she sought legal advice.

As a result of her cooperation, "it was obvious that she was not involved," Arseneault said.

All 10 bullets fired at Chalem and Lehmann hit their targets, prosecu-tors have said. Two guns were used, but prosecutors would not say wheth-er two people pulled the triggers. Chalem was shot in the eyes, ears, mouth and back, while Lehmann was shot in the leg and three times in the back of his head.

In February, Prosecutor Kaye told the Asbury Park Press that there could be an arrest within a few weeks and said it hinged in part of the results of DNA examination that investigators were conducting on dog samples. Kaye would not say why the dog DNA was needed, but hair or saliva or other bodily fluids left behind by a dog can be matched for DNA much as DNA samples left behind by humans can be tested and compared.

Chalem kept two English bulldogs, Sophia and Spikey, to whom he was devoted and from whom he was rarely separated, according to people who knew him.

When Chalem's and Lehmann's bodies were found in Chalem's dining room by his friend Allen Lloyd Conkling and another man in the early morning hours of Oct. 26, the two dogs were in Chalem's bedroom, the door to which was open.

"We were hopeful," said Kenney, "It didn't work out."James W. Prado Roberts: (732) 922-6000, Ext. 4317, or jwr@app.com

Published on June 15, 2000

Copyright 1997-2000 IN Jersey.

app.com

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To: Jeffrey S. Mitchell who wrote (13)4/25/2003 8:41:51 AM
From: Arcane Lore
   of 77
 
From the SEC site:

U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 18105 / April 24, 2003
SEC OBTAINS SUMMARY JUDGMENT
AGAINST COMPANY'S STOCK PROMOTER

SECURITIES AND EXCHANGE COMMISSION V. GLOBAL DATATEL, INC., RICHARD BAKER, MARIO HABIB, and STUART BOCKLER, Case No. 01-9108-CIV-RYSCAMP (S.D. Fla.).
The Securities and Exchange Commission ("SEC") announced that on April 16, 2003, United States District Court for the Southern District of Florida entered an Order Granting SEC's Motion for Summary Judgment and Entering Final Judgment of Permanent Injunction and Other Relief against Defendant Stuart Bockler ("Final Judgment"). The Final Judgment enjoins Bockler from violating Section 17(a) and 17(b) 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, Orders Bockler to pay disgorgement in the amount of $174,616.16, with prejudment interest in the amount $7,985.16, and imposes a civil penalty of $110,000.

On December 26, 2001, the SEC filed a complaint against Bockler and others in connection with stock promotional activities on behalf of Global Datatel, Inc. ("Global" or "the Company"), a company whose common stock was quoted on the Over-the-Counter Bulletin Board. Global hired Bockler, a public relations consultant, to disseminate reports to the investment community about the Company in exchange for shares of Global stock. The SEC's Complaint alleged that from January 1999 through October 1999, Bockler drafted and disseminated at least one dozen glowing reports about Global containing baseless price projections and making "BUY" and "STRONG BUY" recommendations while, at the same time, selling his own shares of the Company's stock. Moreover, Bockler never disclosed in his reports the compensation he was paid by Global, or that he was selling his Global stock. In granting summary judgment in favor of the SEC, Judge Kenneth Ryskamp held that Bockler's conduct constituted a "classic case of `scalping'," in violation of the anti-fraud and anti-touting provisions of the federal securities laws.

Previously, on February 19, 2002, the Court entered a Judgment of Permanent Injunction and Other Relief against Global, upon the consent of its bankruptcy trustee. On May 6, 2002, the Court entered Judgments of Permanent Injunction and Other Relief against Richard Baker (former CEO of Global) and Mario Habib (president of Global's subsidiary, eHola.com, Inc.), by their consent, enjoining them from violating Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. Baker and Habib were ordered to pay civil penalty in amounts of $25,000 and $15,000, respectively.

See also, Litigation Release No. 17300 (January 10, 2002).

sec.gov


(Thanks to The Truthseeker for noting this litigation release (see Message 18881216 and subsequent posts.)

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To: Arcane Lore who wrote (71)11/1/2006 9:04:19 PM
From: Janice Shell
   of 77
 
Colts Neck murder still unsolved

Bodies of two stock promoters were found in mansion in 1999
Posted by the Asbury Park Press on 10/30/06
BY DAVID PORTER
THE ASSOCIATED PRESS

COLTS NECK — The gated mansion with its ornate fountain still sits at the bend of a quiet cul-de-sac, in a spot where the only sound that interrupts the chirping of birds is the occasional distant hum of an airplane passing overhead.

Little has changed outwardly in this tucked-away corner of one of New Jersey's most picturesque communities since the night two stock promoters were found slain on the marble floor of the mansion's dining room, shot multiple times as they reached for their cell phones.

Seven years after the killings, the case remains unsolved. Despite an apparent wealth of potential suspects and some promising leads at the outset, the killers of Alain Albert Chalem and Maier Lehmann have never been found.

"As time goes by on any crime, especially a homicide, the trail gets colder and colder," said former Monmouth County Prosecutor John Kaye, whose office initiated the investigation in concert with the FBI, local authorities and investigators with the Securities and Exchange Commission.

The multi-agency investigation reflected the tangled web of the victims' business dealings, which authorities strongly believe played a part in their deaths. The execution-style killings were widely seen as a sign that the volatile world of small-cap Internet stock trading, which had already been infiltrated by organized crime, was starting to unravel.

The slayings also reverberated through the leafy streets of Colts Neck, a town of horse farms and sprawling homes that had one of the lowest crime rates of any town in the state.

"At the time it was rather shocking for us all here," said Lillian G. Burry, Colts Neck's mayor in 1999. "We're a very quiet, well-manicured, semi-agrarian community. This was the kind of thing you read about in a magazine, not that you'd see in your hometown."

Colts Neck was hardly a stranger to white-collar crime, however. Living across town from Chalem in 1999 was Jeffrey Pokross, a mob-connected stockbroker who was arrested for stock fraud and later helped the government arrest more than 120 people in one of the nation's biggest securities fraud stings. Disgraced penny stock tycoon Robert Brennan, currently serving a federal prison term, owned a stable and golf course in the township, and former New Jersey Devils co-owner Marc Cooper, convicted of swindling clients of his bill-processing firm out of $78 million, also lived there.

"Because it's very quiet, and by virtue of the way homes are laid out and the open spaces, you don't have neighbors knowing what neighbors are doing," Burry said. "From that point of view, if you were thinking of something illicit, it would be a good place to hide out."

The list of Lehmann's and Chalem's potential enemies was lengthy. Lehmann, who lived on Long Island, had cooperated with the government in an insurance fraud case in the early 1990s that led to the arrest of more than 100 people. Chalem had worked at A.S. Goldmen, a corrupt brokerage accused of stealing nearly $100 million from investors, though he was never indicted.

Both men also were heavily involved in promoting stocks on a Web site that was registered in Panama and operated out of Hungary. After the killings there was intense speculation that the two had been involved in "pump and dump" schemes — inflating a stock's price using bogus press releases, taking a profit and then dumping the worthless stock on unsuspecting investors — and had been slain by people they had ripped off.

"A lot of people had bad feelings toward these people, but that didn't mean they killed them," Kaye said. "We went down some very promising paths that in a normal case would have resolved it. One resolution we thought was certain, but our use of DNA confirmed this person had nothing to do with it."

Whoever killed Lehmann and Chalem on the evening of Oct. 25, 1999, left little behind. At one point, investigators reportedly tried to get human DNA samples from two dogs that were in the mansion at the time, but that proved fruitless.

"There was very little evidence left at the scene," Colts Neck Police Chief Kevin Sauter recalled. "Months later, someone came back and said someone may have dumped a gun in a pond, and we had a team come out, but they didn't find anything. Since then it's kind of died out, as far as leads go."

Long Island attorney Alexander Novak, who had represented Lehmann in a securities case, said he has a theory about the killings based on conversations with his client.

Investigators never interviewed him formally, Novak said last week. Even today, he declines to divulge details of the conversations with Lehmann, citing ethical constraints.

Meanwhile, the house at 3 Bluebell Road is still owned by Russell Candela, whose daughter, Kimberly Scarola, lived with Chalem at the mansion but was in Florida with her son from a previous marriage on the night of the slayings. A phone number is listed for Scarola at the address, but she did not return messages.

The Monmouth County prosecutor's office would only confirm that the investigation is still open.

Novak, for one, is not optimistic.

"It sounded like an extremely professional hit," he said. "It sounded like the perpetrators were on a plane back to Eastern Europe before they even found the bodies."

Copyright © 2006 Asbury Park Press. All rights reserved

app.com

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To: Jeffrey S. Mitchell who wrote (60)12/26/2013 12:59:31 AM
From: Only-The_Facts
   of 77
 


Its been a while since this OP appeared. Since then we have learned quite a bit about this "mystery" that is anything but. What happened to Chalem also happened to other witnesses of government crimes involving Enron (Clifford Baxter, John Pierre Gonyou, Scott Gallin, and even Kay Lay whose convenient "heart attack" may have been induced one week before he planned to "come clean" with an aide to Senator Waxman).

Here are the indisputable facts...


* Chalem was a wired FBI informant under constant 24/7 surveillance at the time of his death

* No FBI agent made a move to prevent the murder nor rush to apprehend the shooter

* Many credible sources have identified the shooter as "Mikhail" of the Russian Mob

* Chalem had always served as a proxy for big players that included politicians and drug dealers

* Chalem was involved in the acquisition of $10 million unregistered Enron shares off-shore in 1998 & 1999

* Writer Gary Weiss wrote a fictitious article about the Italian mob being responsible for Chalem's death that led every investigator away from the truth. Who paid Gary Weiss to plant this red herring article? Was it the same people who ignored Al's reports that people were making death threats against him, and the same people who told the FBI to do nothing to stop his murder in October of 1999? Gary Weiss needs to be grilled under oath about his bogus article and Chalem's FBI handlers also need to be interrogated on a witness stand. Google "Chalem murder" and you will understand why. But here is another good place to start:

deepcapture.com


Gary Weiss

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To: Only-The_Facts who wrote (73)12/26/2013 1:48:46 PM
From: Jeffrey S. Mitchell
   of 77
 
Is Deep Capture still up? I never found them credible so find to reason to patronize the site. Aren't they being sued for shoddy reporting by some company in Vancouver? How is that suit going?

- Jeff

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