44 stock promoters accused by S.E.C. of Internet fraud

Article Abstract:

A special SEC enforcement squad accuses 44 stock promoters of fraudulently recommending companies on the Internet. The squad was created in Jul 1998 specifically to monitor Internet fraud. Regulators say promoters in 10 states and the District of Columbia illegally touted securities and misled investors. For example, regulators allege that promoters recommended stocks but did not disclose that they were being paid in cash or stock by the companies they were recommending. Sometimes, say regulators, promoters sold their own shares when the price of a stock had been 'pumped up.' Regulators say promoters used the Internet in various ways, such as posting messages on Web sites, writing for on-line newsletters and transmitting volumes of junk E-mail. The SEC cautions investors to be wary, saying Internet scams are becoming increasingly varied and sophisticated.

Security brokers and dealers, Cases, Laws, regulations and rules, Internet, Telecommunications regulations, Government communications regulation, World Wide Web, United States. Securities and Exchange Commission, Stock markets, Government Regulation, Stock Market

Montgomery chief quits in dispute with Naationsbank parent

Article Abstract:

Nationsbanc Montgomery Securities LLC's CEO and chairman, Thomas Weisel, one of the best-known, West Coast investment bankers, reseigned recently. The resignation came after months of bitter disagreements with his new bosses iin Charlotte, NC. Charlotte, NC-based Nationsbank Corp. acquired Weisel's San Francisco, CA-based Montgomery Secutities for $1.2 billion in October 1997. Weisel and his San Francisco associates assumed, apparently incorrectly, that they would manage the company.

Comment:

CEO and chairman, Thomas Weisel, one of the best-known, West Coast investment bankers, reseigned recently

Executive changes & profiles, Company Personnel, Nationsbanc Montgomery Securities L.L.C.

Arbitration rules relaxed at brokers

Article Abstract:

The Securities and Exchange Commission (SEC) announced that employees in the brokerage industry would no longer have to arbitrate employment discrimination claims before industry panels. The change in the rule will go into effect on January 1, 1999. The National Association of Securities Dealers Inc. had been seeking the change. The group had been pressured for several years by angry employees and civil rights groups.

Comment:

SEC rules that employees in brokerage industry no longer have to arbitrate employment discrimination claims before ind panels

Legal/Government Regulation, Securities & Commodities Services, Securities, Commodity Contracts, and Other Financial Investments and Related Activities, Securities industry