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Who are the CHEC guys?
What they all don't have is the ability to manage a hybrid fuel system. HHO has a fantastic effect in combination with all fuels. The key is the brain, fuel management and I follow the guys that can manage fuel. With these scams it's not the technology it's the P&D people who run the show. Don't mistake this technology for hydrogen fuel cells using liquid hydrogen. Producing 2 liters a min. of hydrogen gas is easy. Manage that gas through the air intake and you get results that most would think fake. Believe me, it's not.
HYHY is painted with a dirty brush.
OSC and SEC investigations.
I have followed the CHEC guys for years ... they have nothing.
jmo
Yup ... a total scam from top to bottom.
jmo
George Georgiou - Settlement Agreement
http://www.investorvoice.ca/Cases/Investor/Blackburn/Georgiou(Re).htm
Ontario Securities Commission
Chapter 13 - SRO Notices and Disciplinary Proceedings 13.1 SRO Notices and Disciplinary Decisions (2000), 23 OSCB 3772 #21/00
May 19, 2000
Georgiou (Re)
IN THE MATTER OF Discipline Action Pursuant to By-Law 20 of
the Investment Dealers Association of Canada
May 17, 2000
George Georgiou - Settlement Agreement
Pursuant to By-law 20.25 of the Investment Dealers Association of Canada ("the Association") the Respondent, George Georgiou, agrees and consents to the following:
I. SUMMARY OF FACTS
1.
George Georgiou (the "Respondent") has been a Registered Representative in the securities industry with a Member of the Association from January 6, 1989 to January 27, 1995. His work history is as follows:
Walwyn Stogell Cochran Murray Ltd. (Kitchener, Ont.)
Jan 6'89 to Jun 1'90
Midland Walwyn Capital Inc.* (Kitchener, Ont.) Jun
1'90 to Nov 19 '93
Levesque Securities Inc. (Kitchener, Ont.) Nov 24
'93 to Jan 27 '95
(*"Midland", now Merrill Lynch Canada Inc.)
[...]
87. In settling this matter, the Association took into consideration the fact that these events took place over four years ago while the Respondent was between the ages of 21 to 25.
II.
STATUTES OR REGULATIONS THERETO, BY-LAWS, REGULATIONS, RULINGS OR POLICIES NOT COMPLIED WITH:
The Respondent failed to comply with the By-laws, Regulations or Policies of the Association as follows:
Count #1 to #3
Between January 22, 1993 to November 19, 1993, George Georgiou effected discretionary trades in 3 client accounts, namely the accounts of Hildegard Benik, Isabel Hetherington and Gail Blackburn, without the prior knowledge or written authorization of the clients and without such client accounts having been specifically approved and accepted in writing as a discretionary account by the designated person of the Member, Midland Walwyn Capital Inc., contrary to Regulation 1300.4(a) and (b).
Count #4 to #6
Between January 22, 1993 to November 19, 1993, George Georgiou effected short sales transactions in 3 client accounts, namely the accounts of Hildegard Benik, Isabel Hetherington and Christine Lynda Brokenshire, without first obtaining signed margin agreements from the clients, contrary to Regulation 200.1(i)(2).
Count #7
Between November 24, 1993 to January 27, 1995, George Georgiou effected short sales in 6 client accounts while under restrictions from the Member, Midland Walwyn Capital Inc., which prohibited him from conducting short sales without obtaining prior manager approval, thereby engaging in business conduct which is unbecoming or detrimental to the public interest, contrary to By-law 29.1.
Count #8 to #11
Between January 22, 1993 to November 19, 1993, in respect of 4 client accounts, namely the accounts of Hildegard Bepik, Christine Lynda Brokenshire, Kimberly Nordick and John and Freda Szalay, George Georgiou failed to exercise due diligence to ensure that trade recommendations made for those accounts were appropriate for the clients and in keeping with the clients' respective investment objectives, contrary to Regulation 1300.1(c).
Count #12 to #15
Between January 22, 1993 to January 27, 1995, George Georgiou either borrowed monies from or loaned monies to 4 clients, namely Peter and Barbara Wurtele, Gale Blackburn, John Matsias and Jack Hougassien (Tech-Hi), thereby engaging in business conduct which is unbecoming or detrimental to the public interest, contrary to By-law 29.1.
Count #16 to #17
On or about July 16, 1993, George Georgiou failed update the new account documentation with respect to 2 client accounts, namely the accounts of Hildegard Benik and William Nordick, thereby failing to exercise due diligence to learn the essential facts relative to every client and to every order or account accepted, contrary to Regulation 1300.1(a).
Count #18 to #20
Between November 24, 1993 to January 27, 1995, in respect of 3 client accounts, namely the accounts of Gale Blackburn, Paul and Anna Tuerr and Accumach Holdings, George Georgiou either provided the clients with written guarantees or entered into personal financial arrangements to privately settle the clients' complaints without the knowledge, consent or authorization of the Member firm, Levesque Securities Inc., thereby engaging in business conduct which is unbecoming or detrimental to the public interest, contrary to By-law 29.1.
Count #21
Between November 1, 1994 to January 27, 1995, George Georgiou effected discretionary trades in 1 client account, namely the account of Gail Blackburn, without the prior written authorization of the client and without the client account having been specifically approved and accepted in writing as a discretionary account by the designated person of the Member. Levesque Securities Inc., contrary to Regulation 1300.4(a) and (b).
Count #22
Between November 1, 1994 to January 27, 1995, George Georgiou effected 47 transactions in 1 client account, namely the account of Tech-Hi, thereby generating $43,122.83 in commissions. The trading activity in the account was excessive and beyond the bounds of good business practice, contrary to Regulation 1300.1(b).
Count #23
Between November 1, 1994 to January 27, 1995, George Georgiou effected 76 transactions in 1 client account, namely the account of Paul and Anna Tuerr, thereby generating $46,240.30 in commissions. The trading activity in the account was excessive and beyond the bounds of good business practice, contrary to Regulation 1300.11(b).
III. FUTURE COMPLIANCE
The Respondent hereby states that in future he will comply with the Regulations not complied with as described in Part II of this Settlement Agreement.
IV. CONSENT AND AGREEMENT
The Respondent hereby consents and agrees with the terms of settlement as set out in this Settlement Agreement.
V. ACCEPTANCE OF PENALTY
The Respondent accepts the imposition by the Association of the following discipline penalties: i)
A fine of $50,000 to be paid to the Association within four (4) months of the date of acceptance of this Settlement Agreement by the District Council;
ii)
A suspension of the Respondent's receiving approval from acting in any registered capacity with any Member of the Association for a period of ten (10) years, commencing January 31, 1995 till January 31, 2005;
iii)
A condition of strict supervision for a period of three (3) years following any period of suspension imposed by the District Council, and the employing Member shall be required to complete and submit monthly supervision reports on a timely basis to the Registration Department of the Association;
iv)
A condition that the Respondent must re-write and pass the Conduct and Practices Handbook examination administered by the Canadian Securities Institute within ninety (90) days prior to the submission of an application for approval by the Respondent to the Association. Evidence of successful completion must be provided to the Association within thirty (30) days thereafter; and
v)
The Respondent must satisfy in full all of the fines, conditions and costs imposed by the District Council pursuant to this Settlement Agreement within the specified time parameters. Failure to do so may result in the immediate suspension of his approval in any capacity until such time that all fines, conditions and costs are paid or complied within full.
VI. ASSOCIATION COSTS
The Respondent shall pay the Association for its costs of the investigation in this matter the amount of $15,000.00 payable within four (4) months of the acceptance of this Settlement Agreement by the District Council.
VII. EFFECT OF NON-COMPLIANCE WITH PENALTIES
The Respondent admits notice of By-law 20.35 of the Association: 20.35
In the event that a fine or condition imposed by the District Council pursuant to By-law 20.6 or 20.10 is not paid or complied with, respectively, within the time prescribed by the District Council, the applicable District Council may, upon application by the Senior Vice-President, Member Regulation, and without further notice to the individual or Member concerned, suspend the approval of such individual or the rights and privileges of such Member, respectively, until such fine is paid or condition fulfilled.
VIII. WAIVER
The Respondent hereby waives his right to a hearing pursuant to the Association's By-laws in respect of the matters described herein and any right of appeal or review which may be available pursuant to such By-laws or any applicable legislation.
IX. EFFECTIVE DATE AND NOTICE OF PENALTY
This Settlement Agreement shall only become effective in accordance with its terms upon the acceptance or the imposition of a lessor penalty or less onerous terms by the applicable District Council of the Association in accordance with By-law 20.26 of the Association and, in such event, the Respondent shall be deemed to have been penalized pursuant to By-law 20.10 for the purpose of giving notice thereof.
DATED at the City of Toronto in the Province of Ontario, this 17th day of May, 2000. WITNESS GEORGE GEORGIOU
ACCEPTED by the Ontario District Council of the Investment Dealers Association of Canada, this 18th day of May, 2000.
INVESTMENT DEALERS ASSOCIATION OF CANADA
Per: Fred Kaufman
Per: Bob Guilday
Per: David Kerr
http://www.investorvoice.ca/Cases/Investor/Blackburn/Georgiou(Re).htm
Earnest you're actually off base on this technology.
I've done a sht load a DD on this and there is an honest group that plans on taking it to the next level. they're engine manufactures. Rotary engines and have done a lot of testing on hybrid fuels. Fuels used in combination with HHO. Some very interestin results. The P&D boys latch on to it but have no friggin idea what direction is up.
Any connection here to Hydrogen Hybrid Corp.?
The CEO for them is also being sentenced for securities fraud in August.
I believe the SEC has charged the principals huge fines and disgorgement.
jmo
Has this company gone out of business? Has anyone heard any recent news? Thanks.
Good to hear they got that scammer.
Thanks for the update.
jmo
Next is usually "demonstrated inability to pay" and waiver of fines, if it runs true to past form.
The Commission’s action, filed in the Eastern District of Pennsylvania on February 12, 2009 seeks a permanent injunction, disgorgement, prejudgment interest, civil penalties, and a penny stock bar against Georgiou. The action has been stayed pending resolution of the criminal charges.
That's a very large fine
HYHY
Too old to live
too young to die
BYBY
GEORGE GEORGIOU CONVICTED OF SECURITIES FRAUD AND OTHER CHARGES RELATING TO MULTIMILLION DOLLAR MARKET MANIPULATION SCHEMES
Litigation Release No. 21426 / February 25, 2010
U.S. v. George Georgiou, Criminal Action No. 09-88 (E.D. Pa.)
SEC v. George Georgiou, Civil Action No. 09-CV-616 (E.D. Pa.)
GEORGE GEORGIOU CONVICTED OF SECURITIES FRAUD AND OTHER CHARGES RELATING TO MULTIMILLION DOLLAR MARKET MANIPULATION SCHEMES
The Securities and Exchange Commission (“Commission”) announced today that on February 12, 2010, after a three week jury trial prosecuted by the United States Attorney’s Office in Philadelphia, Pennsylvania, George Georgiou, of Toronto Ontario, was convicted of securities fraud, conspiracy, and wire fraud for his role in manipulating the market in four separate microcap stocks – Avicena Group, Inc., Neutron Enterprises, Inc., Hydrogen Hybrid Technologies, Inc., and Northern Ethanol, Inc. Sentencing is scheduled for May 7, 2010. Georgiou faces a maximum sentence of 165 years in prison and $21.25 million in fines.
The Commission previously filed a civil injunctive action against Georgiou based on similar conduct. According to the Commission’s complaint, from 2004 through September 2008, Georgiou, who controlled the publicly-traded stock of each company, manipulated the market for the purpose of artificially inflating each company’s stock price or to create the false appearance of an active and liquid market. In order to do so, Georgiou used many nominee accounts that he either directly or indirectly controlled at offshore broker-dealers and banks, and used a variety of manipulative techniques, including matched orders and wash sales. The Complaint alleges that ultimately, Georgiou realized at least $20.9 million in ill-gotten gains from his manipulation schemes through sales of artificially inflated stock and by using the artificially inflated stock as collateral to fraudulently obtain “margin” and other cash loans from Bahamian brokerage firms. The Commission’s action, filed in the Eastern District of Pennsylvania on February 12, 2009 seeks a permanent injunction, disgorgement, prejudgment interest, civil penalties, and a penny stock bar against Georgiou. The action has been stayed pending resolution of the criminal charges.
The Commission acknowledges the assistance of the Ontario Securities Commission, the Securities Commission of the Bahamas, and the Turks & Caicos Islands Financial Services Commission in connection with this matter.
For further information, please see Litigation Release No. 20899 (February 12, 2009).
http://www.sec.gov/litigation/litreleases/2009/lr20899.htm
http://www.sec.gov/litigation/litreleases/2010/lr21426.htm
The glossy hard mailer always seems to bring in the newbs ... but it usually results in a real mass slaughter.
jmo
Kinda knew when i get the nice 8 page, glossy, full color thing in the mail it was a scam.. was following this one for a while and did not see a reason to waste my money here.. did that in a couple other POS ceo scam..
maybe he get a big one in prison if you know what i mean..
You are right ... Total SCAM.
So many lawsuits coming against these crooks.
jmo
Total scam.
Lost a few k on this.
Caveat Emptor.
WP
HYHY's technology did not work.
Why would it work for a new company?
jmo
Hope Georgiou FRIES.
This was an obvious scam.
jmo
SEC CHARGES GEORGE GEORGIOU, A CANADIAN CITIZEN, FOR MARKET MANIPULATION SCHEMES
The Securities and Exchange Commission announced that today it charged George Georgiou, of Toronto, Ontario, with manipulating the market in four separate microcap stocks — Avicena Group, Inc., Neutron Enterprises, Inc., Hydrogen Hybrid Technologies, Inc., and Northern Ethanol, Inc.
Their auditor has now been Sanctioned by the PCAOB and the SEC has laid charges.
jmo
Run away is right.
This one is riddled with lawsuits and securities investigations.
jmo
Hey G, I was not trying to push you on anything here.. Thought you may have been bag holding HYHY shares, I was trying to help you out!! I am not in BIGD or HYHY, so I don't care...nor do I have anything to gain!
Not sure about your response...if you ment it then next time I will not try to help out a fellow trader!!
CYA
No thanks. Run. Away!
Hey Generic,
Came across your post on HYHY, looks as if there may be a tie to BIGD that announced name change and merger news today. If you still have HYHY shares, they might be worth something. Look at the BIGD board for info & ties...
Take care.
still grey - looking over old old posts I kept for some reason
their auditor:
Auditor/Accountant
Moore & Associates, CHTD
6490 West Desert Inn Rd.
Suite 109
Las Vegas, NV 89146
United States
http://www.pinksheets.com/pink/quote/quote.jsp?symbol=HYHY
From its most recent filing, it looks like this one ran out of money.
$7k in current assets and $1.2 Million in Current liabilities.
Say goodnite.
jmo
here another one in which the SEC is taking thing over.
http://www.sec.gov/litigation/litreleases/2009/lr20899.htm
this IS WAS and always be a Piece of Sh%t SCAM stock..
hope NO ONE bought into this or if you did you make a couple buck and got out..
Stay away from this. http://caps.fool.com/Blogs/ViewPost.aspx?bpid=62506&t=01000000000103882559
look like another POS scam stock is down in flames.. glad I am not a bag holder of this one.. have a couple other I could interest you in.
He was "churning and burning" client accounts to earn commissions.
Nasty
George Georgiou - Settlement Agreement
http://www.investorvoice.ca/Cases/Investor/Blackburn/Georgiou(Re).htm
Ontario Securities Commission
Chapter 13 - SRO Notices and Disciplinary Proceedings 13.1 SRO Notices and Disciplinary Decisions (2000), 23 OSCB 3772 #21/00
May 19, 2000
Georgiou (Re)
IN THE MATTER OF Discipline Action Pursuant to By-Law 20 of
the Investment Dealers Association of Canada
May 17, 2000
George Georgiou - Settlement Agreement
Pursuant to By-law 20.25 of the Investment Dealers Association of Canada ("the Association") the Respondent, George Georgiou, agrees and consents to the following:
I. SUMMARY OF FACTS
1.
George Georgiou (the "Respondent") has been a Registered Representative in the securities industry with a Member of the Association from January 6, 1989 to January 27, 1995. His work history is as follows:
Walwyn Stogell Cochran Murray Ltd. (Kitchener, Ont.)
Jan 6'89 to Jun 1'90
Midland Walwyn Capital Inc.* (Kitchener, Ont.) Jun
1'90 to Nov 19 '93
Levesque Securities Inc. (Kitchener, Ont.) Nov 24
'93 to Jan 27 '95
(*"Midland", now Merrill Lynch Canada Inc.)
[...]
87. In settling this matter, the Association took into consideration the fact that these events took place over four years ago while the Respondent was between the ages of 21 to 25.
II.
STATUTES OR REGULATIONS THERETO, BY-LAWS, REGULATIONS, RULINGS OR POLICIES NOT COMPLIED WITH:
The Respondent failed to comply with the By-laws, Regulations or Policies of the Association as follows:
Count #1 to #3
Between January 22, 1993 to November 19, 1993, George Georgiou effected discretionary trades in 3 client accounts, namely the accounts of Hildegard Benik, Isabel Hetherington and Gail Blackburn, without the prior knowledge or written authorization of the clients and without such client accounts having been specifically approved and accepted in writing as a discretionary account by the designated person of the Member, Midland Walwyn Capital Inc., contrary to Regulation 1300.4(a) and (b).
Count #4 to #6
Between January 22, 1993 to November 19, 1993, George Georgiou effected short sales transactions in 3 client accounts, namely the accounts of Hildegard Benik, Isabel Hetherington and Christine Lynda Brokenshire, without first obtaining signed margin agreements from the clients, contrary to Regulation 200.1(i)(2).
Count #7
Between November 24, 1993 to January 27, 1995, George Georgiou effected short sales in 6 client accounts while under restrictions from the Member, Midland Walwyn Capital Inc., which prohibited him from conducting short sales without obtaining prior manager approval, thereby engaging in business conduct which is unbecoming or detrimental to the public interest, contrary to By-law 29.1.
Count #8 to #11
Between January 22, 1993 to November 19, 1993, in respect of 4 client accounts, namely the accounts of Hildegard Bepik, Christine Lynda Brokenshire, Kimberly Nordick and John and Freda Szalay, George Georgiou failed to exercise due diligence to ensure that trade recommendations made for those accounts were appropriate for the clients and in keeping with the clients' respective investment objectives, contrary to Regulation 1300.1(c).
Count #12 to #15
Between January 22, 1993 to January 27, 1995, George Georgiou either borrowed monies from or loaned monies to 4 clients, namely Peter and Barbara Wurtele, Gale Blackburn, John Matsias and Jack Hougassien (Tech-Hi), thereby engaging in business conduct which is unbecoming or detrimental to the public interest, contrary to By-law 29.1.
Count #16 to #17
On or about July 16, 1993, George Georgiou failed update the new account documentation with respect to 2 client accounts, namely the accounts of Hildegard Benik and William Nordick, thereby failing to exercise due diligence to learn the essential facts relative to every client and to every order or account accepted, contrary to Regulation 1300.1(a).
Count #18 to #20
Between November 24, 1993 to January 27, 1995, in respect of 3 client accounts, namely the accounts of Gale Blackburn, Paul and Anna Tuerr and Accumach Holdings, George Georgiou either provided the clients with written guarantees or entered into personal financial arrangements to privately settle the clients' complaints without the knowledge, consent or authorization of the Member firm, Levesque Securities Inc., thereby engaging in business conduct which is unbecoming or detrimental to the public interest, contrary to By-law 29.1.
Count #21
Between November 1, 1994 to January 27, 1995, George Georgiou effected discretionary trades in 1 client account, namely the account of Gail Blackburn, without the prior written authorization of the client and without the client account having been specifically approved and accepted in writing as a discretionary account by the designated person of the Member. Levesque Securities Inc., contrary to Regulation 1300.4(a) and (b).
Count #22
Between November 1, 1994 to January 27, 1995, George Georgiou effected 47 transactions in 1 client account, namely the account of Tech-Hi, thereby generating $43,122.83 in commissions. The trading activity in the account was excessive and beyond the bounds of good business practice, contrary to Regulation 1300.1(b).
Count #23
Between November 1, 1994 to January 27, 1995, George Georgiou effected 76 transactions in 1 client account, namely the account of Paul and Anna Tuerr, thereby generating $46,240.30 in commissions. The trading activity in the account was excessive and beyond the bounds of good business practice, contrary to Regulation 1300.11(b).
III. FUTURE COMPLIANCE
The Respondent hereby states that in future he will comply with the Regulations not complied with as described in Part II of this Settlement Agreement.
IV. CONSENT AND AGREEMENT
The Respondent hereby consents and agrees with the terms of settlement as set out in this Settlement Agreement.
V. ACCEPTANCE OF PENALTY
The Respondent accepts the imposition by the Association of the following discipline penalties: i)
A fine of $50,000 to be paid to the Association within four (4) months of the date of acceptance of this Settlement Agreement by the District Council;
ii)
A suspension of the Respondent's receiving approval from acting in any registered capacity with any Member of the Association for a period of ten (10) years, commencing January 31, 1995 till January 31, 2005;
iii)
A condition of strict supervision for a period of three (3) years following any period of suspension imposed by the District Council, and the employing Member shall be required to complete and submit monthly supervision reports on a timely basis to the Registration Department of the Association;
iv)
A condition that the Respondent must re-write and pass the Conduct and Practices Handbook examination administered by the Canadian Securities Institute within ninety (90) days prior to the submission of an application for approval by the Respondent to the Association. Evidence of successful completion must be provided to the Association within thirty (30) days thereafter; and
v)
The Respondent must satisfy in full all of the fines, conditions and costs imposed by the District Council pursuant to this Settlement Agreement within the specified time parameters. Failure to do so may result in the immediate suspension of his approval in any capacity until such time that all fines, conditions and costs are paid or complied within full.
VI. ASSOCIATION COSTS
The Respondent shall pay the Association for its costs of the investigation in this matter the amount of $15,000.00 payable within four (4) months of the acceptance of this Settlement Agreement by the District Council.
VII. EFFECT OF NON-COMPLIANCE WITH PENALTIES
The Respondent admits notice of By-law 20.35 of the Association: 20.35
In the event that a fine or condition imposed by the District Council pursuant to By-law 20.6 or 20.10 is not paid or complied with, respectively, within the time prescribed by the District Council, the applicable District Council may, upon application by the Senior Vice-President, Member Regulation, and without further notice to the individual or Member concerned, suspend the approval of such individual or the rights and privileges of such Member, respectively, until such fine is paid or condition fulfilled.
VIII. WAIVER
The Respondent hereby waives his right to a hearing pursuant to the Association's By-laws in respect of the matters described herein and any right of appeal or review which may be available pursuant to such By-laws or any applicable legislation.
IX. EFFECTIVE DATE AND NOTICE OF PENALTY
This Settlement Agreement shall only become effective in accordance with its terms upon the acceptance or the imposition of a lessor penalty or less onerous terms by the applicable District Council of the Association in accordance with By-law 20.26 of the Association and, in such event, the Respondent shall be deemed to have been penalized pursuant to By-law 20.10 for the purpose of giving notice thereof.
DATED at the City of Toronto in the Province of Ontario, this 17th day of May, 2000. WITNESS GEORGE GEORGIOU
ACCEPTED by the Ontario District Council of the Investment Dealers Association of Canada, this 18th day of May, 2000.
INVESTMENT DEALERS ASSOCIATION OF CANADA
Per: Fred Kaufman
Per: Bob Guilday
Per: David Kerr
http://www.investorvoice.ca/Cases/Investor/Blackburn/Georgiou(Re).htm
The Blackburns began a relationship with a young broker, George Georgiou, in 1989. Over the course of six years, Georgiou managed the Blackburns' investment accounts, first at Midland Walwyn, then at Levesque. From the beginning of his career at Midland, Georgiou was earning high commissions for himself and for the firm, but was doing so in an aggressive, manipulative and questionable manner. In 1993, after numerous warnings, Georgiou was terminated by Midland and was immediately hired by Levesque. In 1995, Georgiou was terminated by Levesque for similar reasons and subsequently left the investment industry.
Litigation-Securities
Prepared by:
David Di Paolo
Borden Ladner Gervais LLP
http://www.investorvoice.ca/Cases/Investor/Markarian/BLG_Feb2007.htm
There have been a number of developments in securities litigation in areas as diverse as brokers' liability, take-over bid cases and shareholder's litigation. There is not one common theme that ties these decisions together. It is clear, however, that the courts and the legislature in particular are increasingly sympathetic toward individual investors and increasingly skeptical of broker-dealers, issuers and insiders.
BROKER LIABILITY
A significant decision in the area of broker liability is Blackburn v. Midland Walwyn Capital Inc., [2003] O.J. No. 621 (S.C.J.), aff ‘d [2005] O.J. No. 678 (C.A.), leave to appeal refused [2005] S.C.C.A. No. 196. For the first time, the decision imposes an obligation on broker-dealers to warn their clients when they become aware that one of their brokers has engaged in unauthorized or otherwise inappropriate conduct in the account of one or more clients. The warning extends not only to the clients in whose account the activity takes place, but to all clients of the broker.
The Blackburns began a relationship with a young broker, George Georgiou, in 1989. Over the course of six years, Georgiou managed the Blackburns' investment accounts, first at Midland Walwyn, then at Levesque. From the beginning of his career at Midland, Georgiou was earning high commissions for himself and for the firm, but was doing so in an aggressive, manipulative and questionable manner. In 1993, after numerous warnings, Georgiou was terminated by Midland and was immediately hired by Levesque. In 1995, Georgiou was terminated by Levesque for similar reasons and subsequently left the investment industry.
During his relationship with the Blackburns, Georgiou engaged in unauthorized trading in Dr. Blackburn's investment account. When Dr. Blackburn confronted Georgiou, he convinced Dr. Blackburn to enter an agreement whereby Georgiou personally guaranteed that the Blackburns would not suffer any losses as a result of the unauthorized trade in exchange for their promise that they would make no complaints to the investment firms with respect to Georgiou's questionable conduct. In the end, the Blackburns lost approximately $190,000 and brought an action against Georgiou, Midland and Levesque, seeking recovery of their losses.
In finding for the Blackburns on the issue of liability, the trial judge held that, given the firms' knowledge of Georgiou's trading practices, Midland and Levesque failed both in their duty to inform securities regulators and their duty to inform the Blackburns of Georgiou's misconduct in the accounts of his other clients. The trial judge grounded these duties in the regulations imposed by securities regulators, established to protect the clients of brokers and investment firms. Further, the trial judge relied on cases that establish and apply the general principle of a "duty to warn," which flows from the duty of care owed in negligence cases. On appeal, the Ontario Court of Appeal upheld the trial judge's imposition of a duty to warn on Levesque and Midland.
Blackburn was recently applied by the Quebec Superior Court of Justice in Markarian v. Marches mondiaux CIBC inc., [2006] J.Q. no 5467 ( J.C.S.). In Markarian, the court considered the actions of CIBC World Markets Inc. ("CIBC") with respect to its clients Haroutioun and Alice Markarian (the "Markarians"). The Markarians routinely signed documents presented to them by their CIBC broker, Harry Migirdic ("Migirdic"). According to the Markarians, they never received the documents before signing, nor did they have an independent understanding of their meaning, relying always on Migirdic's explanations. The trial judge concluded that Migirdic took advantage of the Markarians' trust by asking them to sign blank guarantees, which Migirdic used to guarantee losses in the accounts of other clients that he was managing illegally.
For years this situation continued, despite the fact that the Markarians' low-risk accounts were purported to guarantee the high-risk accounts of people they did not know. Although CIBC's compliance department repeatedly questioned Migirdic and his branch manager, Tom Noonan, with respect to these irregularities, the situation was allowed to continue for several years, until Migirdic confessed to CIBC. In spite of Migirdic's confession and his assertion that the Markarians had no knowledge that their accounts guaranteed the badly failing accounts of strangers, CIBC chose to act upon the guarantees, causing the Markarians a loss of $1.5 million. The Markarians pursued an action against CIBC seeking reimbursement of their losses. In a lengthy and strongly worded condemnation of CIBC's actions, the trial judge ordered that the bank return the Markarians' illegally appropriated funds. Further, the trial judge awarded the Markarians $50,000 each in general damages, and an additional $1.5 million in punitive damages, for a total award of more than $3.1 million.
Although the trial judge refers to the decision in Blackburn several times in Markarian, his most significant reliance on Blackburn is with respect to the duty of investment firms to inform their clients of broker misconduct. The trial judge heard evidence that, throughout the course of his employment with CIBC, and certainly prior to obtaining the fraudulent guarantees of the Markarians, Migirdic had been reprimanded, suspended, and threatened with termination several times due to violations of internal and external rules. Relying on Blackburn, the trial judge held that CIBC was negligent in failing to warn its clients that its employee was dishonest and breached regulations.
http://www.investorvoice.ca/Cases/Investor/Markarian/BLG_Feb2007.htm
InvestorVoice.CA
Securities Regulation In CanadA
He was banned as a broker when he was 24 years old.
That has to be some kind of record.
Ex-Broker From Canada Indicted in $26 Million Fraud (Update2)
By Sophia Pearson
http://www.bloomberg.com/apps/news?pid=20601082&sid=aXUyz3XLJGNk&refer=canada#
Feb. 12 (Bloomberg) -- A former stock broker from Canada was indicted for manipulating the shares of four companies trading over the counter in a $26 million fraud ring, U.S. prosecutors said.
George Georgiou, 39, of Ontario, was charged with conspiracy, securities fraud and wire fraud, Philadelphia Acting U.S. Attorney Laurie Magid said today in a statement. Georgiou and others artificially inflated the prices of shares in Neutron Enterprises Inc., Avicena Group Inc., Hydrogen Hybrid Technologies Inc. and Northern Ethanol Inc., according to the indictment.
"This fraud attacks the credibility of our financial markets at a time when individual investors have already suffered great losses," Magid said.
U.S. regulators are using undercover informants and FBI agents to crack down on stock manipulators. On Dec. 15, Magid and the Securities and Exchange Commission's Philadelphia office accused seven people of paying kickbacks in a series of separate schemes to inflate stock prices in companies including National Lampoon Inc., maker of the 1978 fraternity comedy movie "Animal House."
House Arrest
Georgiou is under house arrest in the U.S. after he allegedly agreed to pay an undercover FBI agent a kickback to bribe brokers to purchase $10 million worth of Northern Ethanol stock, according to the statement.
"Mr. Georgiou denies the government's allegations and is looking forward to the opportunity to defend himself in court," Catherine M. Recker, Georgiou's lawyer, said in a statement. "We expect that he will be vindicated."
Georgiou, who was a registered investment professional until he was banned as a broker in 1995, worked with others in the U.S., Canada, the Turks and Caicos Islands and the Bahamas, according to the statement. The group sold stocks when they reached an artificially inflated price and used those values as collateral to obtain loans in brokerage accounts at two Bahamian firms, Magid said in the statement.
The firms were forced to liquidate when they were left with virtually worthless stocks, Magid said.
The SEC said today in a statement that it sued Georgiou in federal court in Philadelphia. The commission temporarily halted trading in the four companies today. The suspension expires on Feb. 26, according to the SEC statement.
Georgiou faces as much as 165 years in prison and a $21 million fine if convicted of all charges.
The case is U.S. v. Georgiou, U.S. District Court, Eastern District of Pennsylvania (Philadelphia).
To contact the reporter on this story: Sophia Pearson in Wilmington, Delaware Spearson3@bloomberg.net
Last Updated: February 12, 2009 17:35 EST
http://www.bloomberg.com/apps/news?pid=20601082&sid=aXUyz3XLJGNk&refer=canada#
I hope the SEC charges some of the Canadian crew in Bowmanville with CHEC too.
That is where the whole scam originated imo.
Yup.. Won't by HYHY for a long time now.
WP
Nope ... won't be HYHY.
SEC CHARGES GEORGE GEORGIOU, A CANADIAN CITIZEN, FOR MARKET MANIPULATION SCHEMES
The Securities and Exchange Commission announced that today it charged George Georgiou, of Toronto, Ontario, with manipulating the market in four separate microcap stocks — Avicena Group, Inc., Neutron Enterprises, Inc., Hydrogen Hybrid Technologies, Inc., and Northern Ethanol, Inc.
The Commission's action, filed in federal district court in Philadelphia, alleges that, from 2004 through September 2008, Georgiou, who controlled the publicly-traded stock of each company, manipulated the market for the purpose of artificially inflating each company's stock price or to create the false appearance of an active and liquid market. In order to do so, Georgiou used many nominee accounts that he either directly or indirectly controlled at offshore broker-dealers and banks, and used a variety of manipulative techniques, including matched orders and wash sales. Ultimately, Georgiou realized at least $20.9 million in ill-gotten gains from his manipulation schemes.
In addition to the enforcement action, the Commission today entered an order suspending trading in the securities of the four manipulated stocks for a ten day period commencing 9:30 a.m. February 12, 2009. The U. S. Attorney for the Eastern District of Pennsylvania today separately announced criminal charges against Georgiou involving the same conduct.
only gets an E if it's on OTCBB lol
you mean BYBYE
HYHY symbol change BYBY
Beacon Pump?
Read carefully:
Get Ready for Our Next Exciting Trade Idea Tomorrow
After an amazing 400% run for ZILA in just two days following our alert last week, our members have certainly been cashing-in! And don't think we're even close to running out of potentially money-making stock ideas.
As usual, we have spent a considerable amount of time the past few days looking for another quality trade idea that we feel you need to look at. Well, we've found it and we are ready to announce it our members… but you'll have to wait until tomorrow morning.
But as we do our final bit of research and dig into this one a little more, we ARE able to give you a little sneak peak at what could potentially be another money-making opportunity.
Our latest idea comes from one of our longtime favorite areas of the market—the "Green" sector. This company has developed an innovative technology that they hope will make a major dent in the US gas consumption.
The best part is that after a day of panic-selling almost a month ago, the stock has since stabilized and slowly reversed higher. This looks like a classic turnaround to us. You can buy the stock today for a big discount to where it was just a few months ago. So, while the company still is as good as it was a couple months ago, you can scoop up shares at a big discount right now compared to where it has traded in the past.
And did we mention that we've had a great track record with this company? Yes, we've actually mentioned this one to our members before. In fact, the first time we alerted members to this growth story, the stock shot up nearly 50% following our alert …and was one of our strongest performers of the year.
Stay tuned as we will be announcing the name of this proven performer tomorrow morning. As the old saying goes, "History may not repeat itself exactly….but it often rhymes."
rhymes? HYHY ?
Almost took the bait today in preparation for the inevitable rise and fall of Beacon promoted stock.
If it's not HYHY, then whatever.
If it is.. I'll watch the party from outside.
WP
We have generated $291,196 in revenues against a loss from operations of $(3,062,579) for the fiscal year ending September 30, 2007. We are expecting losses over the next twelve (12) months since we have little revenues to offset the expenses associated in executing our business plan. We cannot guarantee that we will ever be successful in generating revenues in the future.
Doesn't look good.
From Fidelity News Alerts:
Hydrogen Hybrid Technologies Inc. Auditor Raises 'Going Concern' Doubt 01/29 08:09 AM
Hydrogen Hybrid Technologies Inc. (HYHY:$0.032,0$-0.001,0-3.03%) filed its 10-K on January 13, 2009 for the period ending September 30, 2008. In this report its auditor, Moore & Associates, gave an unqualified opinion expressing doubt that the company can continue as a going concern.
Yes ... Jet Propulsion Labs did some work on hydrogen back in the 70's and it is still cited as the source of some of these claims.
Course then you also have those that used heavy water like Anderson and Meyers and claimed to run their vehicles 100% off water.
Unfortunately, none of them ever proved that either.
Ever been to the International Water Fuel Museum??
http://en.wikipedia.org/wiki/Water_Fuel_Museum
I've been bumping into you everywhere lately. Hopefully you didn't buy into this stock.
The basic concept is that their product injects a small amount of hydrogen into the cylinder along with the gasoline vapor. The theory is that the hydrogen burns faster and wicks the flame through the cylinder faster than gasoline alone would burn. That would make a cleaner 'pop' on the power stroke of the cylinder, allowing for better and more efficient engine performance.
The good news: The theory appears sound and does work. The bad news: It takes a non-trivial amount of energy to produce that hydrogen and any increase in efficiency will surely be drained by the power needed to produce that hydrogen. It's likely a wash at best and at worst, the 'technology' makes efficiency worse. This technology has been around since at least the 70's and finds a revival every so often. No doubt HYHY knows this but the story makes great fodder for selling stock.
Re:<"$1.18 close.">
$0.04 close. Quite the fall from glory from six months ago. Stay away from companies which can't prove any real benefit.
Yes this hit one of my scans too. I wonder if that S-8 is done though.
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