UPDATE: SEC Stops Trading In 35 Cos Linked To Email Stk Spam
Last update: 3/8/2007 12:45:32 PM
(Updates throughout with details, SEC comment)
By Judith Burns
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--The Securities and Exchange Commission halted trading in 35 companies Thursday as it stepped up efforts to protect investors from market manipulators who use email "spam" to hype investments in tiny microcap companies.
"Operation Spamalot" will target an estimated 100 million spam messages sent each week, the SEC announced. Its chairman, Christopher Cox, said the operation will crack down on emailed invitations urging investors to "ride the bull" or make "fast money."
The SEC's announcement followed the halt in trading of shares in 35 Pink Sheet companies said to be featured in repeated spam campaigns. The SEC cited questions about the adequacy and accuracy of information about the companies.
Spam messages can trigger sudden rises in stock prices and trading activity, but the stocks can plunge when the perpetrators sell their shares and stop the spamming, causing investors to lose their money, Cox said at a press conference here. Mark Schonfeld, head of the SEC's New York office, estimated that investors have lost tens of millions of dollars in the past year alone on the 35 stocks subject to the trading halt. SEC officials have long recommended deleting such messages.
Under the new push, the agency is warning investors to steer clear of such stock tips and plans to take aggressive steps to curb the spamming. More trading halts and lawsuits targeting promoters are likely, agency officials said. "There will be actions to follow," Cox promised.
The 10-day trading suspensions will run through March 21, and affect the following 35 companies: Advanced Powerline Technologies Inc. (APWL), America Asia Petroleum Corp. (AAPM), Amerossi International Group, Inc. (AMSN), Apparel Manufacturing Associates, Inc. (APPM), Asgard Holdings Inc. (AGHG), Biogenerics Ltd. (BIGN), China Gold Corp. (CGDC), CTR Investments & Consulting, Inc. (CIVX), DC Brands International, Inc. (DCBI), Equal Trading, Inc. (EQTD), Equitable Mining Corp. (EQBM), Espion International, Inc. (EPLJ), Goldmark Industries, Inc. (GDKI), GroFeed Inc. (GFDI), Healtheuniverse, Inc. (HLUN), Interlink Global Corp. (ILKG), Investigative Services Agencies, Inc. (IVAY), iPackets International, Inc. (IPKL), Koko Petroleum Inc. (KKPT), Leatt Corporation (LEAT), LOM Logistics, Inc. (LOMJ), Modern Energy Corp. (MODR), National Healthcare Logistics, Inc. (NHLG), Presidents Financial Corp. (PZFC), Red Truck Entertainment Inc. (RTRK), Relay Capital Corp. (RLYC), Rodedawg International Industries, Inc. (RWGI), Rouchon Industries, Inc. (RCHN), Software Effective Solutions Corp. (SFWJ), Solucorp Industries Ltd. (SLUP), Sports-stuff.com Inc. (SSUF), UBA Technology, Inc. (UBTG), Wataire Industries Inc. (WTAF), WayPoint Biomedical Holdings, Inc. (WYPH), and Wineco Productions Inc. (WNCP).
-By Judith Burns, Dow Jones Newswires, 202-862-6692;
Judith.Burns@dowjones.com (END) Dow Jones Newswires
March 08, 2007 12:45 ET (17:45 GMT)
