Litigation Release No. 20228 / August 7, 2007
SEC v. Sierra Brokerage Services, Inc., et al., United States District Court for the Southern District of Ohio. Civil Action No. C2-03-326
On July 26, 2007, the Honorable John D. Holschuh, U. S. District Judge for the Southern District of Ohio, entered a Final Judgment as to defendant Jerome B. Armstrong ("Armstrong"). The Final Judgment permanently enjoins Armstrong from future violations of Section 17(b) of the Securities of 1933. The Final Judgment further orders Armstrong to pay disgorgement in the amount of $5,832, prejudgment interest of $3,235, and a civil penalty of $20,000. Armstrong consented to the entry of the Final Judgment without admitting or denying the allegations of the Commission's Complaint, except as to jurisdiction.
The Commission's Complaint, filed on April 14, 2003, alleged that beginning on March 6, 2000, Armstrong touted the stock of BluePoint Linux Software Corporation ("BluePoint") by posting unsubstantiated, favorable buy recommendations on the Raging Bull internet site. Armstrong posted over eighty such recommendations during the first three weeks that the stock of BluePoint was publicly traded. According to the Complaint, Armstrong praised BluePoint's investment value and encouraged investors who were experiencing trouble having their orders filled to keep trying. The Complaint further alleged that the promoters of BluePoint were secretly transferring stock in three other companies to Armstrong at prices below the then current market for those three stocks and that Armstrong made at least $20,000 by selling the shares he received from the promoters of BluePoint. The Complaint alleges that Armstrong did not disclose in his internet postings that he was being compensated for making the postings.
Which gets picked up by Matt Drudge:
DAILY KOS CO-AUTHOR FINED $30K FOR UNETHICAL STOCK TOUT
Wed Aug 08 2007 19:12:23 ET
Prominent liberal blogger Jerome Armstrong has agreed to pay nearly $30,000 in fines in a settlement with the Securities and Exchange Commission over allegations that Armstrong touted the stock of a software company, without disclosing that he was being paid to do so, the NY TIMES reports.
Armstrong is the co-author of _Crashing the Gate: Netroots, Grassroots, and the Rise of People-Powered Politics,_ with Markos Moulitsas of Daily Kos. He is also the founder of the Democratic activist site MyDD.com.
Under the agreement, Armstrong neither denies nor admits to the allegations.
"It's good to see the matter finally end," Armstrong said in an e-mail message to the TIMES.
Which elicits the usual well thought out rational response from the DK:
Famous self-hating closeted homosexual and right wing propagandist blogger Matt Drudge has taken aim at the DailyKos community today. He's running the following "breaking" story:
[Drudge's post here]
BREAKING:
Matt Drudge is reported to still be cruising Florida gay bars in between sending traffic to his personal friend Breitbart's startup "news wire" in exchange for kickbacks and running goofy pictures of Hillary Clinton...
The Daily Kos, a class* act all the way.
NOTE: The word "class" in this case denotes a complete lack of actual class and an overabundance of general "wussiness." Not to mention a disturbing level of homophobia. It is good to know the Democratic Presidential candidates feel these are the sort of folks you want to kow-tow towards. What is the DK if not the Bob Jones University of the left?
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