Replies to post #240 on Digital Gas, Inc.(fka DIGGQ)

[Buckey]

Forbes
http://www.forbes.com/feeds/ap/2009/09/30/business-financial-impact-us-penny-stock-fraud-new-jersey_6950381.html

Associated Press
NJ man ordered to pay $5.2M in penny stock fraud
Associated Press, 09.30.09, 01:48 PM EDT


FREEHOLD, N.J. -- A New Jersey man must pay nearly $5.2 million in penalties and restitution stemming from a penny stock fraud case.

A judge in Monmouth County ruled Monday that Brian Smith sold unregistered stock to 200 investors. The judge found the Spring Lake resident issued news releases that manipulated the price and demand for the stock of a company called Digital Gas ( DIGG.PK - news - people ), which is now in bankruptcy.

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Yahoo! BuzzThe judge said the scheme lasted from 1999 to 2007. He also found that Smith and his wife used investor funds for their personal benefit, including mortgage payments and improvements to their home.

Authorities say Digital Gas was a shell company with no real operations. Its Web site claimed it was a business incubator for new technologies in the energy and natural resource fields.


Copyright 2009 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed

[scion]

Let there be light - I wonder how long it will take before Brian Smith finds another source of easy money.

[scion]

08-54958-tjt Digital Gas, Inc

Case type: bk Chapter: 7
Asset: Yes
Vol: i Judge: Thomas J. Tucker
Date filed: 06/20/2008
Date of last filing: 04/14/2009

Case Summary
Office: Detroit
Filed: 06/20/2008
County: Wayne
Terminated:
Fee: Paid
Debtor discharged:
Origin: 0
Reopened:
Previous term:
Converted: 11/12/2008
Debtor dismissed:
Joint: n Confirmation hearing:

Nature of debt: business
Pending status: Awaiting Discharge ,Awaiting Involuntary Answer

Flags: CONVERTED, ProSe

Trustee: K. Jin Lim
City: Plymouth
Phone: [phone]
Fax: [phone]
Email: [e-mail]

Party 1: Digital Gas, Inc (26-2497306) (Alleged Debtor)

Atty: Richard F. Fellrath
Represents party 1: Alleged Debtor
Phone: [phone]
Fax: [phone]

Atty: Kostan Dino Kostopoulos (T)
Represents party 1: Alleged Debtor
Phone: [phone]
Email: [e-mail]

Atty: Ian Redmond (T)
Represents party 1: Alleged Debtor
Phone: [phone]
Email: [e-mail]

Location of case files:
Volume: CS1
The case file may be available.

https://ecf.mieb.uscourts.gov/cgi-bin/qrySummary.pl?523938