|To: Mr. Jens Tingleff who wrote (61)||12/19/2002 9:17:19 AM|
|Score One SCRO SREA this appears to be connected? |
HK nabs 19 for alleged bribery in IPO scam
December 19, 2002
HONG Kong's anti-graft body on Tuesday arrested 19 people for alleged bribery scams related to the listing of three small manufacturers on the stock exchange.
Those arrested included the chairmen of the three companies, a certified public accountant, a financial consultant, a senior manager of an accounting firm and 13 others from the companies, the Independent Commission Against Corruption (ICAC) said in a statement.
The chairmen of Gold Wo International Holdings Ltd, Yue Fung International Group Holding Ltd and Fu Cheong International Holdings Ltd were among those detained, the South China Morning Post and Ming Pao Daily reported yesterday, without quoting anyone. A senior manager from Ernst & Young LLP was also among the detainees, Ming Pao Daily said.
Ernst & Young's Hong Kong spokeswoman Annesa Leung said the firm has no comment on the case.
Shares of the three companies were suspended on Monday.
Gold Wo manufactures plastic household products, and Yue Fung is in electronic products such as calculators and digital cameras. Fu Cheong makes circuit boards.
A financial consultant accepted 'substantial' bribes from a number of company chairmen and conspired with a certified public accountant and the companies to overstate profits to meet a listing criterion requiring minimum net income of HK$50 million (S$11.2 million) for the three years preceding the listing, the ICAC said.
The companies were also alleged to have used bogus business transactions supported by false letters of credit and false sales invoices to inflate sales, ICAC said. - Bloomberg
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|To: Mr. Jens Tingleff who wrote (61)||2/3/2003 6:41:33 PM|
|STUART BOCKLER'S ATTORNEY:JOHN L. MILLING, ESQ.,|
UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
SECURITIES ACT OF 1933
Release No. 8189 / February 3, 2003
File No. 3-11027
In the Matter of
JOHN L. MILLING, ESQ.,
: ORDER INSTITUTING CEASE-AND-DESIST PROCEEDINGS PURSUANT TO SECTION 8A OF THE SECURITIES ACT OF 1933 MAKING FINDINGS AND IMPOSING A CEASE-AND-DESIST ORDER
The Securities and Exchange Commission deems it appropriate that cease-and-desist proceedings be, and hereby are, instituted against John L Milling, Esq., ("Milling") pursuant to Section 8A of the Securities Act of 1933 ("Securities Act").
In anticipation of the institution of these proceedings, Milling has submitted an Offer of Settlement (the "Offer") which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceeding brought by or on behalf of the Commission, or to which the Commission is a party and without admitting or denying the findings herein, except as to the Commission's jurisdiction over him and the subject matter of these proceedings, Milling consents to the entry of this Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Making Findings and Imposing a Cease-and-Desist Order ("Order"), as set forth below.
On the basis of this Order and Milling's Offer, the Commission finds1 that:
Milling, age 69, is a resident of Tenafly, New Jersey, has been licensed to practice as an attorney in New York since 1957, and in New Jersey since 1960, and has a specialized practice in securities law. During the period relevant to this proceeding, Milling was legal counsel to LinkNet, Inc. ("LinkNet") and LinkNet de America Latina, Ltd. ("Latina"). Milling's services included opining on the securities registration requirements of securities offerings by LinkNet and Latina.
1. LinkNet is a Utah corporation located in Salt Lake City, Utah. Latina is a Nevada corporation located at the same office as LinkNet in Salt Lake City, Utah.
2. From at least 1999 through 2000, LinkNet conducted an offering of its securities to persons located throughout the United States, selling those securities through a division of LinkNet created, staffed and operated for that purpose. In a report on Form D filed by LinkNet with the Commission, LinkNet stated it raised $9,659,663 from 1246 investors through the offering.
3. During 2000, Latina conducted an offering of its securities to persons located throughout the United States, selling its securities through a division of Latina created, staffed and operated for that purpose. In a report on Form D filed by Latina with the Commission, Latina stated it raised $7,252,248.50 from 655 investors through the offering.
4. Milling prepared drafts of the Forms D referred to in paragraphs 2 and 3 above.
5. In conducting their offerings, neither LinkNet nor Latina complied with requirements of Rule 506 of Regulation D, or any other provisions that exempt or except securities offerings from the registration requirements of the federal securities laws.
6. In June 2000, upon learning the staff of the Commission was investigating LinkNet and Latina for possible violations of the federal securities laws, and upon receiving information concerning possible violations of the federal securities laws in connection with the offerings of LinkNet and Latina stock, Milling recommended that LinkNet and Latina conduct a joint rescission offer to the purchasers of securities in those offerings.
7. However, Milling advised LinkNet and Latina that the rescission offer not be registered with the Commission in order to expedite the rescission offer.
8. Milling drafted the rescission offer which was reviewed and edited by persons associated with LinkNet and Latina, including Allen Johnson, the president of LinkNet and chairman of the board of Latina. Johnson signed the rescission offer on behalf of both companies.
9. The joint rescission offer was conducted in the Fall of 2000 by LinkNet and Latina without having been registered with the Commission.
10. Based on the foregoing, the Commission finds that Milling caused violations of Sections 5(a) and 5(c) of the Securities Act.
In view of the foregoing, the Commission deems it appropriate to impose the sanctions agreed to in Milling's Offer.
Accordingly, IT IS HEREBY ORDERED, pursuant to Section 8A of the Securities Act, that Milling shall cease and desist from committing or causing any violations and any future violations of Sections 5(a) and 5(c) of the Securities Act.
By the Commission.
Jonathan G. Katz
1 The findings herein are not binding on anyone other than Milling.
Home | Previous Page Modified: 02/03/2003
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|To: Mr. Jens Tingleff who wrote (61)||2/3/2003 6:46:38 PM|
|LinkNet:U.S. SECURITIES AND EXCHANGE COMMISSION|
Litigation Release No. 17939 / January 16, 2003
S.E.C. v. Dale Carone, et al., Docket No. CV 03 374NM (FMOx) (USDC C.D. Cal.)
The Securities and Exchange Commission today charged LinkNet, Inc., LinkNet de America Latina, Ltd., Allen R. Johnson, Joseph W. Isaac and Dale R. Carone with the fraudulent offer and sale of unregistered securities of LinkNet and Latina. The complaint alleges the defendants conducted these offerings from August 1999 through October 2000 and raised approximately $17 million from investors by selling the stock through a boiler room established by Johnson, Isaac and Carone in Encino, California.
The complaint alleges that in making the offering the defendants failed to disclose the fact that at least $5.1 million, or thirty percent, of the offering proceeds were paid as commissions to the boiler room operations. It is also alleges that the defendants made false representations that: (1) a public offering of LinkNet stock was imminent; LinkNet's stock would shortly be listed on NASDAQ; investors could realize phenomenal returns on their investment in a short time; and LinkNet and Latina had contracts for the sale of long distance service in the United States and Mexico which would generate millions of dollars in revenue to the companies. The complaint also alleges that, while the offerings were ongoing, Isaac, Carone and Johnson also sold their personal shares of LinkNet and Latina stock through the Encino boiler room and by other means.
All of the defendants are charged with violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"), and Rule 10b-5 thereunder. Johnson, Isaac and Carone are also charged with violations of Section 15(a) of the Exchange Act. The Complaint seeks a final judgment: (i) enjoining the defendants from future violations of the above-cited provisions, (ii) requiring an accounting and disgorgement of their ill-gotten gains, plus prejudgment interest; (iii) assessing civil penalties; (iv) barring Johnson from acting as an officer or director of any public company registered with the Commission; and (v) barring Johnson, Isaac and Carone from any future participation in an offering of penny stock.
Home | Previous Page Modified: 01/17/2003
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|To: StockDung who started this subject||4/14/2003 5:29:10 PM|
|fRANCOIS GOELO SUED BY SEC FOR SECURITIES FRAUD. FURTHER VINDICATION FOR THETRUTHSEEKER AND THE "ZSUN 8"!!!|
SEC SUES EIGHT INDIVIDUALS AND FOUR ENTITIES IN STOCK MANIPULATION
The Commission announced today that it filed a civil action against
eight individuals and four entities for their conduct between April 1999
and July 2000 relating to the price manipulation, unregistered sales,
unreported stock ownership, and touting of securities issued by
BluePoint Linux Software Corporation (BluePoint), a publicly traded
company located in Evansville, Indiana.
The Commission's complaint, filed in the United States District Court
for the Southern District of Ohio, alleges that Aaron Tsai (Tsai) formed
a shell company called MAS Acquisition XI Corporation in 1996 and made
false filings with the Commission to conceal his true ownership and
control of MAS shares and to make it appear that the shares could be
later sold without a registration statement in effect. According to the
Complaint, on February 17, 2000, MAS acquired a Chinese Linux company
and changed its name to BluePoint. On the same day, Michael Markow
(Markow) and his company Global Guarantee Corporation, Francois Goelo
(Goelo), Yongzhi Yang and his company, K&J Consulting, Ltd., and Ke Luo
and his company, M&M Management, Ltd. (collectively, the Promoter
Defendants) bought 3.75 million shares from Tsai for $250,000, or a
little more than $0.06 per share. The Commission alleges that the
Promoter Defendants acquired over 90% of BluePoint publicly traded
shares without reporting their ownership in any Commission filing.
The Commission further alleges that the Promoter Defendants along with
the participation of Sierra Brokerage Services, Inc. (Sierra) and its
two employees, Richard Geiger and Jeffrey Richardson, (collectively, the
Broker-dealer Defendants) worked in concert to create artificial trading
activity and to manipulate the share price of BluePoint from $6 to a
high price of $21 on the first day that BluePoint shares were traded on
March 6, 2001. The Promoter Defendants and Broker-dealer Defendants
dominated and control the BluePoint market that day. At all relevant
times, Tsai, the Promoter Defendants, Sierra and Richardson sold or
offered to sell shares in BluePoint without a registration statement in
effect, and Tsai and the Promoter Defendants never reported their sales
of BluePoint securities and the change in their ownership.
The Commission also alleges that Jerome Armstrong engaged in illegal
touting of BluePoint on March 6 and after because he promoted BluePoint
on the Raging Bull internet site, which carried hundreds of posts about
BluePoint without disclosing the compensation he received from Markow
and Goelo in return for his posts.
The Commission has charged: (1) Tsai, the Promoter Defendants, Sierra,
and Richardson with violating Sections 5(a) and 5(c) of the Securities
Act of 1933 (Securities Act); (2) the Promoter Defendants and Broker-
dealer Defendants with violating Section 17(a) of the Securities Act and
Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and
Rule 10b-5 thereunder; or in the alternative, Markow and Global
Guarantee Corporation with aiding and abetting the other Promoter
Defendants' violations of these provisions; (3) Sierra with violating
Section 15(c)(1) of the Exchange Act and Richard Geiger and Jeffrey
Richardson with aiding and abetting that violation; (4) Armstrong with
violating Section 17(b) of the Securities Act; (5) the Promoter
Defendants with violating Sections 13(d)(1), 13(d)(2), and 16(a) of the
Exchange Act and Rules 13d-1(a), 13d-2(a), and 16a-3 thereunder, and
Tsai with violating Sections 13(d)(1) and 16(a) of the Exchange Act and
Rules 13d-1(a) and 16a-3 thereunder. The Commission is seeking
permanent injunctions, disgorgement of ill-gotten gains with prejudgment
interest, and civil penalties from all defendants.
[SEC V. Sierra Brokerage Services, Inc., Richard Geiger, Jeffrey A.
Richardson, Aaron Tsai, Michael E. Markow, Global Guarantee Corporation,
Francois Goelo, Yongzhi Yang, K&J Consulting, Ltd., Ke Luo, M&M
Management, Ltd., Jerome B. Armstrong, USDC, Southern District of Ohio,
Civil Action No. CV03-326] (LR-18088)...
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|To: StockDung who wrote (122)||6/21/2003 11:52:36 PM|
|LinkNet Files for Bankruptcy to Help Fight SEC Charges |
BY STEVEN OBERBECK
THE SALT LAKE TRIBUNE
LinkNet Inc., a Salt Lake City-based company accused in a U.S. Securities and Exchange Commission lawsuit in California of defrauding investors of $17 million, has filed for Chapter 11 bankruptcy.
The long-distance telephone service company's managing director, Allen Johnson of Farmington, said the U.S. Bankruptcy Court for Utah filing in part was related to the expense of defending the company against the SEC's allegations.
"We've spent a lot of money -- $200,000 -- on legal fees, and then we have some other litigation we are pursuing," Johnson said.
The SEC in January accused LinkNet Inc. and LinkNet de America Latina Ltd., along with principals Johnson, Dale Carone of Tarzana, Calif., and Joseph Isaac of Stephenson Ranch, Calif., of defrauding more than 1,900 investors.
The SEC contends the defendants from August 1999 until October 2000 sold unregistered securities in the two companies through a boiler-room operation. It maintains the defendants lied to investors, telling them a public offering of LinkNet stock was imminent and that the two companies had contracts that would generate millions in revenue.
They failed to disclose that at least 30 percent of the money investors put up was paid as commissions to those working in the boiler room, the SEC alleged.
Ken Israel of the SEC's Salt Lake City office said he does not expect the Chapter 11 filing to affect the federal court action in California.
In its Chapter 11 filing, LinkNet claims it owes approximately $4 million to its 20 largest unsecured creditors, including $1.1 million owed to LinkNet de America Latina Ltd. Under a Chapter 11, a company is given an opportunity to remain in business while it reorganizes its finances.
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|To: SEC-ond-chance who wrote (123)||7/26/2003 9:56:03 AM|
|More on John L Milling|
U.S. Securities and Exchange Commission
Litigation Release No. 18251 / July 25, 2003
Securities and Exchange Commission v. Tecumseh Holdings Corporation, Tecumseh Tradevest LLC, S.B. Cantor & Co., Inc., John L. Milling, Gerard A. McCallion, Anthony M. Palovchik and Dale Carone, Defendants, and Tecumseh Alpha Fund LP, Tecumseh Alpha LLC, and Stracq, Inc., Relief Defendants, Civil Action No. 03 Civ. 5490 (SAS) (S.D. N.Y., filed July 24, 2003)
SEC Obtains Emergency Relief To Halt Ongoing Offering Fraud By Tecumseh Holdings Corporation And Others
On July 24, 2003, the Securities and Exchange Commission filed a civil injunctive action in the United States District Court for the Southern District of New York and on July 25, 2003 obtained emergency relief to halt an ongoing fraud centered around Defendant Tecumseh Holdings Corporation ("Tecumseh"), a purported financial services company with offices in New Jersey and California. The Commission's complaint alleges that the fraud has taken place since June 2000 and involves the unregistered offer and sale of securities of Tecumseh and Tecumseh's subsidiary, Defendant Tecumseh Tradevest LLC ("Tradevest"). Tecumseh and Tradevest have conducted the fraud largely through the efforts of Defendant John L. Milling, a securities lawyer and Tecumseh's senior official. Tecumseh, Tradevest and Milling have acted with the assistance of Defendants S.B. Cantor & Co., Inc. ("Cantor"), a registered broker-dealer, Gerard A. McCallion, Cantor's President; Anthony M. Palovchik, Tecumseh's Vice President, and Dale Carone, manager of Tecumseh's California office; and others working with them. Through the unregistered fraudulent offerings, the Defendants together have raised approximately $10 million from about 500 investors nationwide. The Complaint also names as Relief Defendants three Tecumseh affiliates, Tecumseh Alpha Fund LP ("Alpha Fund"), Tecumseh Alpha LLC ("Alpha LLC"), and Stracq, Inc. ("Stracq").
The Complaint alleges that Defendants Tecumseh, Tradevest and Milling have induced investors to acquire securities of Tecumseh and Tradevest by means of a host of material misrepresentations. Through offering memoranda and other materials, these Defendants have (a) touted false and misleading profit projections; (b) promised some investors "returns on investment" ("ROI") or "dividends" without disclosing that Tecumseh and Cantor have no earnings to distribute and that any such payments necessarily come from capital, including funds raised from other investors; and (c) made materially misleading statements concerning NASD approval for Tecumseh's acquisition of Cantor. Defendants Tecumseh, Tradevest and Milling knew or acted in reckless disregard of the fact that their representations to investors concerning these matters were materially false and misleading.
The Complaint alleges violations by Tecumseh, Tradevest and Milling of the antifraud provisions of the securities laws, Section 17(a) of the Securities Act of 1933 ("Securities Act"), and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, and charges McCallion and Palovchik with aiding and abetting Tecumseh's and Milling's violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, pursuant to Section 20(e) of the Exchange Act. It also alleges violations of the registration provisions, Sections 5(a) and 5(c) of the Securities Act, by Tecumseh, Tradevest, Milling, Cantor and Carone; violations by Cantor of the broker-dealer books and records provisions, Section 17(a) of the Exchange Act and Rules 17a-3 and 17a-4 thereunder; and violations by Carone of the broker registration provisions, Section 15(a) of the Exchange Act. The Complaint also alleges, pursuant to Section 20(a) of the Exchange Act. that Milling is liable as a control person of Tecumseh and Tradevest and that McCallion is liable as a control person of Cantor for their respective violations of the Exchange Act. It also charges Milling with aiding and abetting Cantor's violations of broker-dealer books and records provisions, pursuant to Section 20(e) of the Exchange Act.
The Complaint seeks disgorgement of ill-gotten gains, and prejudgment interest from all Defendants and the Relief Defendants; permanent injunctive relief against all Defendants prohibiting future violations of the provisions of the securities laws they are alleged to have violated, permanent penny stock bars, and civil money penalties. It also seeks temporary and preliminary injunctions and temporary and preliminary penny stock bars against Defendants Tecumseh, Tradevest Cantor and Milling; an asset freeze against the Relief Defendants and Defendants Tecumseh, Tradevest and Milling; appointment of a receiver for Defendants Tecumseh, Tradevest and Cantor; an accounting by the Relief Defendants and Defendants Tecumseh, Tradevest, Cantor and Milling; expedited discovery; and a order prohibiting the Defendants and Relief Defendants from destroying or altering documents.
On July 25, 2003, the Court granted the Commission's application for a temporary restraining order against Defendants Tecumseh, Tradevest, Cantor and Milling, temporarily enjoining them from further violations of the securities laws and temporarily prohibiting them from participating in any penny stock offering. The Court's order also freezes the assets of the Relief Defendants and Defendants Tecumseh, Tradevest and Milling; requires an accounting by the Relief Defendants and Defendants Tecumseh, Tradevest, Cantor and Milling; appoints Loretta Lynch, Esq., as temporary receiver for Tecumseh, Tradevest and Cantor; grants expedited discovery, and prohibits the Defendants and Relief Defendants from destroying or altering documents. The Court's order also directs the Relief Defendants and Defendants Tecumseh, Tradevest, Cantor and Milling to show cause at a hearing set for August 15, 2003 at 10:00 a.m. in Room 12C of the United States Courthouse, 500 Pearl Street, New York, NY, why a preliminary injunction granting the relief requested by the Commission should not be entered by the Court.
The Commission acknowledges the assistance of the Federal Bureau of Investigation, the U.S. Department of Justice and NASD, Inc., in connection with this matter.
SEC Complaint in this matter
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|To: SEC-ond-chance who wrote (128)||7/2/2018 3:04:06 PM|
|SEC Charges California Company and Three Executives with Accounting FraudLitigation Release No. 24181 / July 2, 2018Accounting and Auditing Enforcement Release No. 3945 / July 2, 2018Securities and Exchange Commission v. Axesstel, Inc., et al.(S.D. Cal., filed June 28, 2018)|
On June 28, 2018, the Securities and Exchange Commission charged a California-based telecommunications equipment manufacturer, its Chief Financial Officer, Former Chief Executive Officer, and Director of Contract Fulfillment and Sales Operations for inflating reported revenues in the company's Middle East, Africa, and Europe region in the fourth quarter of 2012 and first quarter of 2013.
According to the SEC's complaint, Axesstel, Inc., Chief Financial Officer Patrick J. Gray, and former Chief Executive Officer Harold Clark Hickock III, aided and abetted by Director of Contract Fulfillment and Sales Operations Steven R. Sabin, inflated the company's revenues by prematurely recognizing revenue on sales and by improperly recognizing revenue despite entering into undisclosed side agreements that relieved customers of payment obligations. Additionally according to the complaint, the Defendants inflated unit prices of products to hit revenue targets with the agreement that Axesstel would subsequently repay the inflated amounts to the customer as marketing development fees. The SEC alleges that Axesstel's revenue was overstated by 66% in the fourth quarter of 2012 and 38% in the first quarter of 2013.
The SEC's complaint alleges that Axesstel, Gray and Hickock violated Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, and that Sabin aided and abetted these violations. The complaint also alleges that Gray and Sabin circumvented internal accounting controls and falsified Axesstel's books and records in violation of Section 13(b)(5) of the Exchange Act and Rule 13b2-1 thereunder; that Axesstel violated the reporting provisions of Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11, and 13a-13 thereunder, and that Gray, Hickock and Sabin aided and abetted Axesstel's violations of 13(a) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 while Gray aided and abetted Axesstel's violations of Rule 13a-11; that Axesstel violated the books and records and internal accounting controls provisions of Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and that Gray and Hickock aided and abetted these violations; and that by signing false Sarbanes-Oxley certifications and lying to Axesstel's auditor, Gray and Hickock violated Exchange Act Rules 13a-14 and 13b2-2.
Axesstel, Gray, Hickock and Sabin agreed to settle the charges without admitting or denying the allegations of the Complaint and consented to entry of a final judgment that permanently enjoins them from future violations of the securities laws, and orders Gray, Hickock and Sabin to pay penalties of $40,000, $25,000 and $10,000, respectively. Gray and Hickock also consented to entry of a judgment which permanently bars Hickock from serving as an officer or director of a public company, and bars Gray from serving as an officer or director of a public company for five years. The settlements are subject to court approval.
Gray also consented to the issuance of a Commission Order suspending him from appearing or practicing before the Commission as an accountant, with the right to apply for reinstatement after five years.
The SEC's investigation was conducted by Adam B. Gottlieb and supervised by Amy L. Friedman, with the assistance of trial counsel Suzanne J. Romajas and Christian D. H. Schultz, supervised by Jan M. Folena.
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