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Penny Stocks

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BUSINESS
September 8, 1989 | By Gregory Spears, Inquirer Washington Bureau
Consumers lose about $2 billion a year investing in penny stocks, according to a 50-state survey of security regulators issued yesterday that concludes the industry is in the grip of con artists and organized crime. "The penny-stock industry increasingly is dominated by utterly worthless or highly dubious securities offerings that are systematically manipulated by repeat offenders of state and federal securities laws and other felons, some of whom have been identified as having ties to organized crime," concluded the report by the North American Securities Administrators Association.
BUSINESS
April 12, 1991 | the Inquirer staff
The Securities and Exchange Commission, seeking to clamp down on the $2- billion-a-year fraud in penny stocks, proposed rules yesterday to protect investors in the securities. The proposed rules define a penny stock as one with a per-share sale price under $5, no regular daily reporting of closing prices, and no listing on a stock exchange or electronic price-quote system. The rules would require brokers to provide prospective buyers with documents outlining risks and explaining key market terms, monthly statements on the value of holdings, and an explanation of sales commissions.
BUSINESS
February 9, 1989 | The Inquirer Staff
The Securities and Exchange Commission moved yesterday to protect small investors from high-pressure sales tactics often used to promote penny stocks. The commission voted 5-0 to propose for comment a rule to require stockbrokers to obtain written approval from most clients before completing the sale of such stocks. Brokers also would have to make a documented decision that the penny stock was a suitable investment, given an individual's stated goals and financial assets. The proposal, which is subject to a 30- to-60-day period for public comment, would not apply to sales to regular customers.
BUSINESS
July 13, 1990 | By Donna Shaw, Inquirer Staff Writer
The Securities and Exchange Commission yesterday sued Meyer Blinder, once a big trader in penny stocks, and his brokerage firm, Blinder, Robinson & Co. Inc., accusing them of a "fraudulent scheme" to deceive and overcharge clients. The suit, filed in U.S. District Court in Philadelphia, seeks repayment from the defendants of more than $20 million in what the SEC said was illegally obtained profits, as well as a permanent injunction prohibiting them from violations of securities laws.
BUSINESS
September 10, 1990 | By Richard Burke, Inquirer Staff Writer
It didn't take long for the sales force at the Center City branch of Shamrock Partners Ltd. to kick into high gear once it opened last summer to sell penny stocks. The telephone lines hummed in its office at 16th and Walnut Streets as rows of brokers sold cheap stocks in a handful of start-up companies. Then, on Aug. 2, 1989, two months after it opened, Shamrock closed its Center City office, leaving investors holding thousands of shares of stock that today have little value.
BUSINESS
August 17, 1989 | From Inquirer Wire Services
Stockbrokers who deal in low-price, often risky securities known as "penny stocks" must now obtain a customer's written approval before completing a sale. The rule, adopted yesterday by the Securities and Exchange Commission, comes in response to a dramatic rise in the fraudulent sale of penny stocks, which are usually not traded on exchanges or quoted on the National Association of Securities Dealers Automated Quotation (NASDAQ) System, known as the national over-the-counter market.
NEWS
July 15, 2011 | By Claudia Buck, McCLATCHY NEWSPAPERS
Want the lowdown on penny stocks? This week, Jeffrey DeBoer, president of DeBoer Financial Group in Roseville, Calif., gives his, er, two cents' worth on investing in penny stocks and answers a trivia question on crude oil. QUESTION: I've got a friend who's intrigued by penny stocks. He's invested in a number of tiny companies whose shares sell for next-to-nothing. As for returns, he's had some big winners and some losers. What's your take on penny stocks? Are they risky?
NEWS
November 20, 2010 | By MICHAEL HINKELMAN, hinkelm@phillynews.com 215-854-2656
A Canadian man was sentenced in federal court yesterday to 25 years in prison in connection with a $55 million international stock-fraud conspiracy. George Georgiou, 40, of Milton, Ontario, was also ordered by U.S. District Judge Robert Kelly to make restitution of $55 million to victims, many of whom lost their retirement savings. Authorities said there were more than 1,900 victims who lost at least $1,000 each. It's not known how many, if any, lived in the Philadelphia region.
NEWS
February 16, 1989 | By Charles Green, Inquirer Washington Bureau
Con artists promising prizes, penny stocks and gold are bilking consumers out of more than $1 billion a year through deceptive telephone-sales practices, a coalition of business, consumer and government groups said yesterday. The coalition launched a campaign to increase public awareness of the fraud, urging consumers to exercise more caution and skepticism when dealing with telephone solicitations. "If it's too good to be true, if it sounds like a quick and easy deal, it's probably a fraud," said Ron Weber, president of the American Telemarketing Association, an industry group.
BUSINESS
July 31, 1990 | By Richard Burke, Inquirer Staff Writer
Federal prosecutors in Philadelphia yesterday charged two business consultants with duping 500 investors of more than $4 million in a scam involving penny stocks. James A. Laiacona, 44, of Stuart, Fla., and William A. MacKay, 47, of Old Brookville, N.Y., each were charged with one count of securities fraud and two counts of wire fraud in an alleged scheme that operated in Pennsylvania and two other states between April 1989 and March 1990. The charges, detailed in a felony information released yesterday, accuse Laiacona and MacKay of taking about $4.3 million from investors by fraudulently inducing them to invest in companies formed by reverse mergers between private companies and publicly traded shell corporations.
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SPORTS
May 13, 2015 | By Zach Berman, Inquirer Staff Writer
Mike Coccia would understand if he hears an occasional boo from the crowd while playing for the Eagles. The undrafted rookie center is a Bethlehem native and son of an Eagles season-ticket holder whose memories with his father include sitting in the 700 level at Veterans Stadium and collecting stories unfit to print. Malcolm Bunche, an undrafted lineman from Newark, Del., would understand, too. His father, Curtis Bunche, was an Eagles draft pick in 1979. Bunche grew up rooting for the Eagles less than one hour down I-95.
NEWS
November 19, 2012
Q: I was just starting to invest on my own when I learned of a new shoe stock and fell in feet-first clear up to my neck. I would have done all right, had I not gone on vacation with no way to follow my positions or trade. While I was away, the stock went from about $2 per share down to 25 cents, never to recover. How can I learn from this? I've learned to be aware of my positions and to make sure I can buy or sell instantly. - D.E., Lanesville, Ind. A: It is indeed smart to keep on top of your holdings, and common to lose money now and then.
BUSINESS
October 4, 2011 | By Mike Armstrong, Inquirer Columnist
By all accounts, the third quarter was wretched for U.S. equity markets, with the major indexes down at least 12 percent. The Inquirer/Bloomberg Philadelphia Index slid 14.03 percent compared with a broader index it tends to track - the Standard & Poor's 500, which dropped 14.33 percent. Good news was in short supply for the 175-stock index, composed of the common stocks of companies based in the Philadelphia region or with significant operations here. Before isolating the best and worst performers from that group, I excluded any stock that began the quarter with a price below $3 a share to remove penny stocks, which tend to have the most dramatic price swings.
NEWS
July 15, 2011 | By Claudia Buck, McCLATCHY NEWSPAPERS
Want the lowdown on penny stocks? This week, Jeffrey DeBoer, president of DeBoer Financial Group in Roseville, Calif., gives his, er, two cents' worth on investing in penny stocks and answers a trivia question on crude oil. QUESTION: I've got a friend who's intrigued by penny stocks. He's invested in a number of tiny companies whose shares sell for next-to-nothing. As for returns, he's had some big winners and some losers. What's your take on penny stocks? Are they risky?
NEWS
November 20, 2010 | By MICHAEL HINKELMAN, hinkelm@phillynews.com 215-854-2656
A Canadian man was sentenced in federal court yesterday to 25 years in prison in connection with a $55 million international stock-fraud conspiracy. George Georgiou, 40, of Milton, Ontario, was also ordered by U.S. District Judge Robert Kelly to make restitution of $55 million to victims, many of whom lost their retirement savings. Authorities said there were more than 1,900 victims who lost at least $1,000 each. It's not known how many, if any, lived in the Philadelphia region.
BUSINESS
September 17, 2010 | By Mike Armstrong, Inquirer Columnist
Unless you're a speculator, there's no reason to pay attention to the wild swings that can occur with penny stocks. As their name implies, penny stocks can be bought and sold for mere pennies per share. The Securities and Exchange Commission actually labels any stock that trades under $5 per share a penny stock. When The Inquirer ranks local companies based on change in stock price, we tend to exclude any stock that trades below $3 a share. But it has been hard to ignore the cratering over the last three weeks of the stock price of C&D Technologies Inc. , a Blue Bell maker of electrical-power storage and conversion systems.
NEWS
January 27, 2007 | By Troy Graham INQUIRER STAFF WRITER
A Cherry Hill stockbroker pleaded guilty yesterday in federal court in Camden for his part in a stock-fraud and money-laundering scheme that pilfered $15 million from investors. Thomas S. King, 48, pleaded guilty to two conspiracy counts and one count of failing to file an income-tax return. Sentencing was scheduled for May 25. One of the conspiracy counts carries a 20-year maximum, but King likely will be sentenced to far less under federal sentencing guidelines. King and other brokers gained control of more than 100 million shares of a penny stock sold on the over-the-counter electronic bulletin board system, an interdealer system for stocks not listed on national securities exchanges, authorities said.
NEWS
October 18, 2005 | By Troy Graham INQUIRER STAFF WRITER
Five men, including a stockbroker from Cherry Hill, have been indicted in federal court in Camden in a complex stock-fraud and money-laundering scheme that fleeced investors of more than $15 million, authorities said. Thomas King, 47, of Cherry Hill, and Robert Pozner, 61, of Ridgewood, N.J., were arraigned yesterday after the indictments were unsealed. Both were released with electronic monitoring devices after posting $250,000 bail. Two men from Florida, Robert Gordon, 55, and Joseph Morgan, 50, were arrested yesterday and will face hearings there today.
NEWS
March 14, 2001 | By Frank Fitzpatrick INQUIRER STAFF WRITER
Robert E. Brennan asked the administrator of his offshore trusts to implicate a dead man in an investigation into the sale of more than $4 million in bonds belonging to the former penny-stock dealer, according to testimony in his fraud trial yesterday. Peter Bond, whose Isle of Man company established three Gibraltar trusts into which Brennan allegedly deposited $22 million sought by creditors, testified in U.S. District Court that Brennan and he grew concerned in 1999 when the U.S. government's probe into many of their transactions intensified.
BUSINESS
December 7, 2000 | By Joseph N. DiStefano, INQUIRER STAFF WRITER
Reliance Group Holdings was delisted by the New York Stock Exchange yesterday as its insurance business in Pennsylvania teetered on the brink of a possible state takeover. The company, which had a stock market capitalization of more than $2 billion as recently as 1998, is essentially worthless as an investment. The exchange dropped the stock because it has traded below $1 per share for more than six months. Its final trade brought less than 1 cent per share. Last month, Reliance defaulted on more than $400 million in bank and bond payments.
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