Posted by: 53chevy
In reply to: None Date:9/11/2007 12:22:04 PM
Post #of 8786
SOLN ($2.80). Hope no one is in this one........
Smart Online CEO, 5 Others Arrested In Sec Fraud SchemeLast update: 9/11/2007 12:11:04 PM
By Chad Bray
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--The chief executive of Smart Online Inc., his brother and four brokers were arrested Tuesday in connection with an alleged scheme to artificially inflate the company's stock, prosecutors said. In a press release, the U.S. Attorney's office in Manhattan said Dennis Michael Nouri, the North Carolina company's president and CEO, and his brother Reeza Eric Nouri, a Smart Online employee, have been charged with securities fraud and conspiracy. Four brokers - Ruben Serrano, Anthony Martin, James Doolan and Alain Lustig - also have been charged with conspiracy and securities fraud in the matter, prosecutors said. They each face a maximum of 20 years in prison on the securities fraud charge. The Nouris are expected to appear before a federal magistrate judge in Durham, N.C., later Tuesday, while the brokers are expected to appear before a federal magistrate judge in New York later Tuesday. Lawyers for the men couldn't immediately be located for comment Tuesday. A phone call to a Smart Online spokesman also wasn't immediately returned Tuesday. Prosecutors have alleged that the Nouris, between May 2005 and July 2007, engaged in a scheme designed to manipulate Smart Online stock price by paying undisclosed kickbacks to brokers to solicit their customers to buy the company's shares in order to drive up its stock price. Smart Online's stock has been traded on the over-the-counter bulletin board. -By Chad Bray, Dow Jones Newswires; 212-227-2017; chad.bray@dowjones.com (END) Dow Jones NewswiresSeptember 11, 2007 12:11 ET (16:11 GMT)
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