The stock rose to $8.16 on several fabrications. The biggest fabrication was that Halpern misrepresented potential earnings. The following is from his Circle Group case.
"On January 15, 2004, Circle Group issued a press release announcing an agreement for the Nestlé Company to purchase Z-Trim for use in its products. (Countercl. ¶ 31). After disclosing the Nestlé contract, Halpern gave a television interview during which he stated that Circle Group’s stock would generate net profits of $.20 per share for the 2004 year. (Countercl. ¶ 32). Akhamzadeh and Zaghi were both aware of the television interview, and Zaghi watched portions of it on Circle Group’s website. (Countercl. ¶ 33). Circle Group ended up operating at a net loss of $4,185,315 on the year – a loss of $.11 per share. (Id.) Circle Group’s stock price nevertheless rose from $2.00 per share to $8.75 per share."
Our CEO has at least a twenty year track record of misrepresenting deals.
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