Slashdot Mirror
SEC Lifts Ax For Minnesota Stock-Price Spammer
thejuggler writes "A call to Samuel Meltzer's St. Paul home is greeted with the message that he doesn't want to be bothered by solicitations. But, this story in a Minneapolis newspaper tells how the Feds and SEC claim he is a huge spammer. They claim he sends out spam spreading false and misleading information about various penny stocks. So far he has made at least $159,600 in stock and cash from 1998-2001 for spreading this false information. In a brief interview Tuesday, Meltzer (The evil spammer), 37, said he hadn't seen the complaint. "This is a surprise," he added."
So a spammer doesn't want to be bothered by solicitations. You won't need to take your iron supplements today, folks! There's irony a-plenty here.
Sheesh, evil *and* a jerk. -- Jade
We could rid ourselves of all these spammers if we just brought back the Spanish Inquisition.... although it seems as if the feds and SEC might already be getting their help....
The dumber people think you are, the more surprised they are when you kill them.
Just wait until he tries to take a shower in prison.
While it's nice to see the "don't bug us, we're woefully underpaid and overworked" SEC finally going after one of these parasites, it's too bad they have to get geeked out about the whole spam bit to do so. That's only the tip of the iceberg on these pink sheet company abuses.
I got taken by a pink sheet bulletin board stock deal in the mid-90s. We put a good company and $15 million of local investor capital into what's called a dormant shell - a publically trading company that perhaps didn't make it in a former life, got kicked off of NASDAQ (or never made it), is probably late on SEC filings, and is operationally dormant. You can buy these things for a quarter million or so in Nevada, apparently.
The whole pitch is "you can go public for much less than an IPO, and get a publically trading stock which is much more liquid for your investors and allows you to get more investing money for less equity." The reality is that the shell's broker gets a credible asset in the shell to use for pump & dump.
The only problem is that every single one of them I've come across has had a controlling parasite "broker" in the middle - as was the one we encountered. The broker broke all the merger terms by refusing to hand over control of the company. He illegally siezed the company and the millions invested and looted it all. Ficticious board resolutions were used to change who could sign on the company bank accounts, etc. Offshore Bermuda accounts were used to funnel things to Swiss accounts - sounds hollywood, but it was very effective.
By the time the courts caught up with it all, the company was absent any cash or assets. The SEC's response? "Sorry - We have too many people doing this to be able to help you. Call your congressperson and ask them to increase our funding." Seriously.
Two years ago, I thought I found a company that had this background that wasn't a scam. WaveRider, a manufacturer of near-line of sight 900 MHz proprietary fixed wireless gear. Then I found the parasite, the Bermuda angle and the Swiss angle. It has since gone from $1/share to around $0.12. Like the best of these deals, the parasite retains competent management that really truly believes it has a chance. But they never do - not when legal control of the company is closely held by the parasite.
So... before you invest in a bulletin board stock, look for the parasite. Late on SEC filings? Run. See a Bermuda/Swiss connection? Run. Nevada corporation? Be very nervous. Read that 10K and 10Qs very, very closely.
Oh, and what ever happened to our parasite? He's still pushing his stocks and has avoided SEC and IRS enforcement for years. He's grown rather confident that he's untouchable and is probably right...
*scoove*
Yes, his name was Jonathan Lebed. See this article here He was never convicted, but did reach an agreement with the SEC and was fined about $285 K. The article states that his total profit from his dealings were over $800 K, so he did get to keep a huge chunk of his profits. Nice work if you can get it.
Sir Bedevere: Tell me. What do you do with spammers? ...because they're... Videogames?
... A spammer!
Peasant 1: quarter them!
Sir Bedevere: And what do you quarter, apart from spammers?
Peasant 1: More spammers!
Peasant 2: Videogames!
Sir Bedevere: Correct. Now, why do spammers quarter?
Peasant 3:
Sir Bedevere: Good. So how do you tell whether he is a Videogame?
Peasant 1: Dominate Japan with him!
Sir Bedevere: But don't we also dominate Japan with excessively cute rodentia iconography?
Peasant 1: Oh yeah.
Sir Bedevere: Now, do videogames withstand a slashdotting?
Peasant 1: No, no... Throw him to the Trolls!
Sir Bedevere: No, no. What else does not withstand a slashdotting?
Peasant 1: Apples!
Peasant 2: IIS!
Peasant 3: Very small rocks!
Peasant 2: Debian! KDE Mirrors for minor upgrades!
Peasant 1: Mindstorms Segway Scooters!
Peasant 2: Beers cooled by Jet Engine exhaust!
Peasant 3: Matrix Movies!
Peasant 2: The RIAA!
Peasant 3: Churches! Churches!
King Taco: Atari 800s!
All Peasants: Ooooooooo....
Sir Bedevere: Exactly! So logically...
Peasant 1: If... he... computes as fast as... an Atari 800... he's a videogame.
Sir Bedevere: And therefore?
Peasant 1:
Peasant 2: A Spammer!
crowd: A Spammer! A Spammer!
Bedevere: Who are you who are so wise in the ways of mob logic?
King Taco: I am CmdrTaco, King of the Geekins.
Bedevere: My liege!
The ______ Agenda