Gregg Wolfe admitted on the witness stand that he and his partner, Edward Purvis, solicited millions of dollars in investments from church groups and paid back interest out of money received from new investors.
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WHITTIER - Former Whittier police Chief Brad Hoover and his brother, John, have sued a former Whittier city councilman and a former state senator for libel and slander over claims the Hoovers had mismanaged and stole retirement savings. • PDF: Hoover’s Lawsuit
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Experts say many have credit problems and landlords reluctant to rent to them.
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If every American said, “No thank you” to Bush’s stimulus check and refused to cash them, the value of the dollars in your pocket right now would go up by a factor greater than the face value of the check.
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DataQuick’s first glimpse at this month’s housing market shows price soft, too.
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Denver prosecutors are about to run Rick Dryer through the wringer.
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Washington, D.C., April 24, 2008 - The Securities and Exchange Commission today charged Paul S. Berliner, a Wall Street trader formerly associated with Schottenfeld Group LLC, with securities fraud and market manipulation for intentionally spreading false rumors about The Blackstone Group’s acquisition of Alliance Data Systems (ADS) while selling ADS short.
The SEC alleges that five months ago, Berliner disseminated the false rumor through instant messages to numerous individuals, including traders at brokerage firms and hedge funds. The false rumor also was picked up by the media.
Heavy trading in ADS stock ensued, and within 30 minutes the false rumor had caused the price of ADS stock, trading at approximately $77 per share, to plummet to an intraday low of $63.65 per share - a 17 percent decline. In response to the unusual trading activity, the New York Stock Exchange temporarily halted trading in ADS stock. Later in the day, ADS issued a press release announcing that the rumor was false. By the close of trading, the price of ADS stock recovered to its pre-rumor price of approximately $77 per share. Berliner profited by short selling ADS stock during its precipitous decline.
“The message of this case is simple and direct. The Commission will vigorously investigate and prosecute those who manipulate markets with this witch’s brew of damaging rumors and short sales,” said SEC Chairman Christopher Cox.
“Today’s action makes clear that the Commission will act swiftly and decisively against those who would seek to profit by disseminating false information to the marketplace,” said Linda Chatman Thomsen, Director of the SEC’s Division of Enforcement.
“The story disseminated by Mr. Berliner was a figment of his imagination,” said Scott W. Friestad, Associate Director of the SEC’s Division of Enforcement. “Conduct like this is particularly insidious because it harms investors by distorting the information they use to make investment decisions.”
The SEC’s complaint alleges that on Nov. 29, 2007 - approximately six months after Blackstone entered into a definitive acquisition agreement for ADS at $81.75 per share - Berliner fabricated and disseminated a rumor that the acquisition was being renegotiated at $70 per share because of purported troubles in the company’s consumer banking division, and the ADS Board was meeting to discuss the revised proposal. The complaint further alleges that around the same time Berliner began disseminating the false rumor to the marketplace, he started selling short ADS securities.
Without admitting or denying the allegations in the SEC’s complaint, Berliner agreed to settle the charges against him by consenting to the entry of a final judgment enjoining him from future violations of the antifraud and anti-manipulation provisions of the federal securities laws, and requiring him to disgorge $26,129 in profits and interest, pay a maximum third-tier penalty of $130,000, and consent to the entry of a Commission Order barring him from association with any broker or dealer.
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For more information, contact:
Scott W. Friestad
Associate Director, SEC’s Division of Enforcement
(202) 551-4962
Robert B. Kaplan
Assistant Director, SEC’s Division of Enforcement
(202) 551-4969
http://www.sec.gov/news/press/2008/2008-64.htm
The following are some snippets from the most recent issue of the International Forecaster. For the full 28 page issue, please see subscription information below.
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Monterey-based hard money broker has deeply reduced interest payments, alarming hundreds of local investors who want their cash back. Previously, investors in Cedar Funding Mortgage Fund had received a rate of return averaging 10.75 percent.
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