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finally. a direction for this co. moving forward.
remember this? dejavue? how will this end?
http://siliconinvestor.advfn.com/subject.aspx?subjectid=31894&ref=IH
I've been watching this-finally some justice>
2009-03-13 14:08 ET - Street Wire
Also Street Wire (U-*SEC) U.S. Securities and Exchange Commission
Also Street Wire (U-AVLL) AVL Global Inc
by Mike Caswell
David Stocker, an Arizona securities lawyer, has pled guilty to criminal fraud charges for his role in the manipulation of 19 stocks over a two-year period. The companies he helped manipulate included AVL Global Inc., a pink sheets listing allegedly run by Ontario father and son Peter and Tyler Fisher, and Motion DNA Corp., a pink sheets company allegedly manipulated through accounts at Research Capital Corp.
The U.S. Department of Justice charged Mr. Stocker, 49, with one count of conspiracy to commit securities fraud on March 11, 2009, in the Eastern District of Virginia. Mr. Stocker simultaneously pled guilty, and admitted in a statement of facts that had the case gone to trial, prosecutors would have proven that he helped with a pump-and-dump of 19 stocks between May, 2003, and February, 2005.
According to the statement of facts, Mr. Stocker was the securities counsel for most of the 19 companies. As counsel, he helped devise a plan in which the companies could evade share registration requirements by issuing stock through sham transactions. His part in the scheme included providing legal opinion letters that gave the false appearance that the shares were exempt from registration. Essentially, this allowed the companies to issue free-trading shares to insiders or anybody else they designated.
Once the shares were issued, Mr. Stocker's co-conspirators began pumping the stocks, through spam and manipulative trades. "Although he generally knew that his co-conspirators were engaged in these sorts of fraudulent activities, he remained willfully blind ... so that he could deny knowledge of their fraudulent acts at a future time if necessary," the statement of facts reads. For example, he knew that spams, fax blasts and mailers issued to tout the stocks contained false information, and were timed to boost prices as Mr. Stocker's co-conspirators sold the stocks.
While Mr. Stocker did not participate directly in pumping the stocks, he did sell shares of the companies as they were being pumped. "This resulted in Stocker and his co-conspirators making millions of dollars in illegal profits from their market manipulation scheme," according to the statement of facts. With most of the companies, the stock collapsed after the promotion ended, "and innocent investors were left with near-worthless securities."
As Mr. Stocker has pled guilty, the statement of facts does not have full details of the manipulations. It does, however, include some examples. One of the companies cited is Emerging Holdings Inc., which purported to be in the business of "data encryption, web access management, and developer solutions." The company had no actual operations. On July 1, 2004, Mr. Stocker filed the documents to take the company public. Around the same time, a private Texas company called Steep Blue Holdings Inc., which was controlled by a co-conspirator identified as "P.O.," purported to buy 10 million shares of the company for $100,000. (All figures are in U.S. dollars.) Steep Blue did not actually pay for the shares, but Mr. Stocker issued an opinion letter stating that the company was relying on Rule 504 to issue 10 million free-trading shares to Steep Blue Holdings without filing a registration statement. (Rule 504 provides an exemption from registering shares. Issuers relying on this exemption cannot be SEC reporting companies and they cannot be "blank check" companies.) Steep Blue then transferred the shares to other entities controlled by Mr. Stocker's co-conspirators. It also transferred 400,000 shares to Curtis Case Inc., a private company controlled by Mr. Stocker.
On July 10, 2004, Mr. Stocker's co-conspirators launched a spam campaign, in which they touted Emerging Holdings with materially false information, according to the statement of facts. The stock went to $1.88 on July 12, 2004. That same day, Mr. Stocker sold 75,000 shares for a gain of $77,250, and his co-conspirators also sold their shares for "a sizeable gain." The scheme was similar for all of the 19 stocks that Mr. Stocker helped manipulate. In total, Mr. Stocker made $2.25-million selling shares of the companies. In all cases, this was only a portion of the money made from the schemes, as his co-conspirators also profited.
Mr. Stocker is scheduled to be sentenced on Nov. 6, 2009, by U.S. District Judge Liam O'Grady. He faces a maximum fine of $250,000 plus five years in prison. He has also agreed to forfeit all of his assets, except his home in Maricopa county, Arizona.
Eight of Mr. Stocker's co-conspirators have already pled guilty. They include Michael Saquella, who was sentenced to 10 years in prison; Justin Medlin, who received six years; Seven Luscko and Gregory Neu, who each received five years; Lawrence Kaplan, who received three years; Brian Brunette, who received one year; Anthony Tarantola, who received six months; and Henry Zemla, who received three months.
AVL Global
One of the companies Mr. Stocker pled guilty to manipulating was AVL Global, which was run by Ontario residents Peter and Tyler Fisher. There were no criminal charges against the Fishers, but on June 11, 2007, the U.S. Securities and Exchange Commission filed civil fraud charges against them and Mr. Stocker. It alleged that they issued false and misleading news releases that pushed the company to $4.10 on Dec. 16, 2004.
Tyler Fisher settled the case out of court by paying a $25,000 penalty and agreeing to a five-year ban from penny stocks. The others, including Mr. Stocker, deny any wrongdoing, and the case has not yet gone to trial.
Motion DNA
The other company with a Canadian connection was Motion DNA, which was run by Michael Saquella, a recidivist securities violator from Mesa, Ariz. On Sept. 6, 2007, the U.S. Department of Justice charged Mr. Saquella with conspiracy to commit securities fraud. It alleged that he manipulated the company through a series of wash trades run through accounts at Research Capital. Mr. Saquella pled guilty to the charges, as well as to an SEC case filed against him. He received 10 years in jail and agreed to pay the SEC $2.5-million. There were no allegations against Research Capital, and it appears the brokerage was just an unwitting conduit.
whats with the message board?
tom
my best wishes and thoughts go your way-
forget the caps- they are overated anyway.
mugs
who is bill hermes?
heard from Fell? Pssstt--
what came first-the chicken or the EGG?
Who is responsible for issuing 8K's- material changes affecting company issues- Fell- right?
If he's not there anymore- who's gonna issue the 8K?
mugs
wx-TRDY is 2nd on I-Hub with posts- pretty intense for a stock that a few are bashing here- suck up all the shares you can without hurting yourself. imo-
These bashers are doing my work for me- I like that, because I dont like lying about my motives here. thanks gator.
mugs
In the big picture-this doesnt mean much-
except maybe we will have more capital to grow our present venues-
and maybe add some marketing/sales people.
funny, tho- how Disney and SS was not mentioned in the release---
??
mugs
Trudy's Bid to Acquire Certain Assets of Chart Studio Publishing (PTY) Ltd Out of Liquidiation Is Trumped by South African Company
Monday December 18, 5:44 pm ET
NORWALK, CT--(MARKET WIRE)--Dec 18, 2006 -- Trudy Corporation (OTC BB:TRDY.OB - News) was advised today that the assets in liquidation of Chart Studio Publishing (PTY) Ltd, Johannesburg, South Africa, were sold at auction by Court-appointed Liquidators to a successful bidder from Capetown, South Africa. The Company, whose bid was exceeded by a narrow margin, had been in negotiation with Chart Studio's management since September.
Trudy Corporation was founded in 1947 as a privately owned designer of plush toys and became a public company in 1987. Trudy currently holds licenses from the Smithsonian Institution, the African Wildlife Foundation and the American Veterinary Medical Association, among others, for children's books, audio books and plush toys. It has active distribution into the toy and book trade, the warehouse clubs, mass market retailers as well as schools and libraries. Also in its distribution portfolio is a mail order catalog and e-commerce business to the education community and at-home consumers.
income report out-we are profitable again-
that next report could be alot of fun here.
Net Income Applicable To Common Shares
SEP06$48 JUN06($349) MAR06$325 DEC05($203)
HUGE vol today. more than Google. smart people here
very forthrite report-no excuses-I like that-and think about THIS-
with 1.8mil sales booked- and Christmas coming- new Sesame St titles yet to be announced-
we could be looking at a watershed Q report this spring.
mugs
pump it up, raw
let the naysayers begin. whoa is me-
the sky is falling.
so who said yesterday someone knows something? LOL
mugs
gator, I only see a fewhundred thou traded-
are you going to put-up? or shut-up?
you got your 007 you were lookin for-
whats happened?
just the garbage, raw-just the garbage-
like I said- it's probably slight advantage over donating and write-off- but dont expect to see any new titles there.
mugs
raw-sellin toCOSTCO is like puttin out the garbage-
count them out, imo for future sales- as they won't buy into Trudy's new no-return policy. if you do see any of our products there- it will truly be old returned product they sold for 1penny on the dollar. probably cheaper for Trudy tho, than the tax write-off v/s disposal fees.
mugs
gator- so is the local drug store-
can you still get OTC anti-psychotic drugs?
if not- maybe mydol will help you.
mugs
raw-URsure tryin to paint a bad picture here-
hey- we know your schtick. you want to keep sentiment down, buyers away so you can buy under a penny-my guess. you take a reasonably good report- and undermine it with that one-time thing. well-guess what. that wasnt orchastrated-it was a material business functioning which HAD to be reported. part of the business, like tom said. same thing as an insurance settlement-or writing off a big bad debt thats also one time. it affects the bottom line. thats it.
and you weasel about the miniscule drop in backlog over last year.
GUESS WHAT!
last years backlog was overshadowed by the uncontrolled return policy. this years backlog has no such pretence with the revised return policy. SOOOOO-
if I were to skew the report like you are doing-
I could say this years backlog IS ACTUALLY MORE than last years.
mugs
but their Q4 was AFTER the Christmas season-
don't make me go back- but I thought it was you raw that said this would be a weak sales quarter, and it could be really bad because of that-
mugs
who predicted that .029? might no be off by much-
in a month or two.
mugs
and Raw- don't get me wrong-
your logic was solid- I didn't totally disagree with you-
I just didn't like the prospect. Just goes to show-
DON'T EVER try to figure this company out. almost every prediction has been quite the opposite of reality.
huh?
mugs
raw-I seem to remember you posting that
this last report could be real bad, based upon it would come 'after' the seasonally best reports. Guess what-
'I'm dreaming of a white Christmas'
after this 'off-season' report.
mugs
income statement All numbers in thousands-
Well Raw- so much for your contention this last report was AFTER the historically 'best' Holiday season earnings period-
PERIOD ENDING 31-Mar-06 31-Dec-05 30-Sep-05 30-Jun-05
Total Revenue 2,051 1,075 2,313 1,018
Cost of Revenue 1,362 646 1,136 701
Gross Profit 689 429 1,177 318
Operating Expenses
Research Development - - - -
Selling General and Administrative 628 591 847 500
Non Recurring - - - -
Others - - - -
Total Operating Expenses - - - -
Operating Income or Loss 61 (163) 330 (182)
Income from Continuing Operations
Total Other Income/Expenses Net 307 6 19 9
Earnings Before Interest And Taxes 368 (157) 349 (173)
Interest Expense 42 46 42 38
Income Before Tax 325 (203) 306 (211)
Income Tax Expense - - - -
Minority Interest - - - -
Net Income From Continuing Ops 325 (203) 306 (211
good point, mike-and timing-could be perfect
for a Great 1Q report, and news on the SS deal, and/or another big affiliation, or buyout for- say-
5 cents--?? William is retirement age-yes?
mugs
Read the whole PR. they are few-far between-
this is almost like insider trading. It means we have concrete reason to know this is going up considerable. news is coming.
this is a buy signal.
mugs
GATOR! I FOLLOW AND DEFEND NO MAN!--
But a few women-- well I have been known to follow a few of them-not defend-em-
just follow-em.
mugs
gator-you are not exactly the poster-child of
sincerity, so dont be so critical of tom and others here-
you wish everyone the best of luck with Trudy, and have said you hope it goes up for their sake- but ever since the good 10K you have created every bad thought and negativity you could think of about the report. your cheap shares didnt materialize- and you selfishly, and unsuccessfully try to bash the price down.
your slip is showing, gator.
I am TRULY sorry you didnt get in under a penny.
mugs
so much for cheap shares-Tom was right-
and a considerable backlog. The best part-
on time filing. this is a big turnaround.
mugs
warehouse sales actually were down,but non-retunable-
get-em early next week.
SALES UP 341%!!!!(to consumer-WalMart,target-etc)
read on- we are up on yearly overall. nice.
Sales increases, for the twelve
months ended March 31,
---------------------------
Sales channel 2006 2005 Variance % change
------------------- ------------ ------------ ------------ ------------
Direct-to-consumer
Book Distributors $ 1,295,472 $ 293,398 $ 1,002,074 341.5%
International
Direct-to-consumer
Book Distributors $ 536,811 $ 56,252 $ 480,559 854.3%
International
Mass Market Dist $ 652,806 $ 194,945 $ 457,861 234.7%
Sales to direct-to-consumer book distributors increased 341.5.0% or $1,002,074 from $293,398 in the prior fiscal year to $1,295,472 in the current fiscal year. This increase was primarily a result of a roll out of several Disney titles that tested favorably in display market tests by two key customers in this division.
Sales to international direct-to-consumer book distributors increased 854.3% or $480,559 from $56,252 in fiscal year 2005 to $536,811 this year. These sales were the result of a one time authorization by Disney to allow the sale of its products to two display marketers in the United Kingdom as well as increasing sales to key accounts in the United Arab Emirates.
Sales to international mass market distributors increased 234.7% from $194,945 to $652,806, an increase of $457,861. This increase was the result of an increasingly strong ongoing commitment by the Disney licensee in Latin America to distribute the Company's Disney-licensed products which are packaged by the Company to this distributor in Spanish language editions.
gator-LOLOL! with the total lack of communications
with investors- I truly wouldn't be surprised at all if this thing went to .05-
or .003.
Trudy's mascot should be fittingly like BigBird- except it would be a big yellow Osterich.
mugs
gatorrrrrr-your predictions have'nt exactly shown us
anything resembeling a prognosticators expertise here-
we're a long way from even the the 007 you've been saying.
looking pretty solid in the penny range for long time.
just hope for you nothing positive emerges on SS or Disney titles. go with the flow. you're looking as desperate to get in as your were to get out last year.
mugs
tom: try this one-
www.companypicnic.com - it works every time, especially if you mention 'what kind of beer can I bring?'
mugs
gator-you are a real character-
and I mean that in a nice way-
sorta-
LOL
mugs
gator-UR a small thinkin fish in huge pond-
your thought process is more directed to the big board.
you make such dramatic strategies toward a a stock in which you would need to be dealing in many millions of shares to even THINK about worrying about a swing of tenths of a penny.
get real. this is for fun down here. quit makin like a wall street guru.
your friend-
mugs
tom-she's not so 'new'-and I'm dissapointed
that we have not heard any input from her. you'd think if she was such a ball of fire, she would be forthcoming with initiatives- a plan, you know?
heck-we hav'nt even heard if the Sesame St deal was finalized.
that troubles me. it's been how many months now- with NO news?
mugs
these assoles are breaking the law-and yet threaten
a lawsuit, admitting in our face they are felons,who screw the average investors wholesaley. even as KenLay and Skilling go to jail. arrogant pdricks.
sorta like calling for illegal alien 'rights'.
this country is going down the drain because nobody has any backbone.sad-sad-sad.
mugs
poke'em witha stick-these crooks scream like banshee's-
AP
Utah Brokerage Houses Decry Proposed Fines
Thursday May 25, 9:23 pm ET
By Paul Foy, AP Business Writer
Brokerage Houses in Utah Decry Hefty Proposed Trading Fines for Trading Irregularities
SALT LAKE CITY (AP) -- A bill approved by the Utah Legislature sparked an angry revolt Thursday among Wall Street firms with Utah operations, which could face hefty state fines for trading irregularities.
The measure cracks down on a stock trading practice defended by some as necessary for orderly markets and assailed by others as easily exploited for stock manipulation.
At issue is short selling, when investors borrow stock hoping the share price declines so they can return it to brokers and pocket the difference.
Utah-based Overstock.com Inc. contends it has been a target of naked short selling, where brokers send IOUs they can't honor through a stock clearinghouse when they run out of shares to lend for short selling.
Overstock.com CEO Patrick Byrne says many brokers never settle these trades, allowing short sellers to profit without having to assume risk. The practice tends to lower a company's share price by artificially creating more sellers than buyers.
The bill approved by the Legislature fines brokers who accumulate too many unsettled trades in a given company after five trading days. The fines start at $10,000 and can increase to cover the sum total of all unsettled trades.
"There's blood in the water," said Howard Headlee, president of the Utah Bankers Association, who said brokerage houses are "talking about not doing business in Utah."
Tony Taggert, an officer for Morgan Stanley -- which operates an industrial bank in Utah and employs almost 5,000 with Discover Card operations here -- promised a lawsuit on behalf of the Securities Industry Association if Gov. Jon Huntsman signs the measure.
"Obviously we weren't paying that much attention. Unfortunately we are late to the table," said Taggert, Utah's former securities director, who now handles state regulation and litigation for Morgan Stanley from New York.
"I'm not saying we're going to pull out of Utah, which has been perceived as very business and industry friendly," he said. "This makes us wonder if that's the case."
The bill also could be a problem for lobbyist and political operative Douglas S. Foxley, who handed lawmakers a bill written for Internet retailer Overstock.com, which complains it has been a target of persistent trading abuse.
Foxley's lobby group also represents industrial banks in Utah, some owned by large brokerage firms -- clients he could lose.
Industry and government insiders said Fidelity Investments, Bear Stearns and Zions Bank, which operates a securities division, were among major brokers upset over the legislation and embarrassed for missing the action.
None of the brokerages returned calls Thursday from The Associated Press. Nor did Foxley, who sidestepped questions late Wednesday, when he was at the Utah Capitol to assure passage of a bill whose sponsor, Sen. Curtis Bramble, R-Orem, says came from Foxley.
"This is the single best thing Utah could do to attract entrepreneurs, especially in high-tech and biotech," said the Overstock.com CEO, who celebrated victory late Wednesday at the Utah Capitol by pledging to expand operations, doubling the company's payroll.
Brokers and the clearinghouse managed by the Depository Trust and Clearing Corp. say stock IOUs are essential to maintain market trading. They dispute that unsettled trades -- called "failures-to-deliver" -- are more than a tiny aberration in the market, or that all of them are short sales.
Michael Mower, Huntsman's deputy chief of staff, disputed that the bill was tailored for Overstock.com, saying it could help dozens of other small Utah companies that have been or might be the target of illegal short selling.