Internet fraud alleged by SEC

The SEC has accused James Sheret Jr. of Bayside, NY, and Glenn Conley of Portland, Oregon of internet stock manipulation. The commission says that Sheret and Conley manipulated the stock prices of 57 thinly traded companies by touting them in spam e-mails.

The SEC, which filed its complaint in U.S. District Court for the Southern District of New York, alleges that the spams were prepared to “make it appear that they emanated from or are endorsed by America OnLine Inc. In fact, AOL has no knowledge of the spams.”

The SEC also alleges that Sheret and Conley dumped the stocks after sending out their spam, realizing collective profits of approximately US$330,000. The SEC is seeking a cease and desist order, disgorgement of their trading profits, prejudgment interest and civil money penalties.

In another unrelated case the SEC says that Philip Leitner and Natale Montozzi pled guilty to one count each of conspiracy to commit securities fraud, in the Southern District of Florida. The charges are based on a fraudulent scheme that raised about US$720,000 from 75-odd investors in both the U.S. and Canada. The charges carry a maximum sentence of 5 years in prison along with possible monetary penalties and restitution.

The SEC alleged that from April 2, 1997 to September 24, 1997, Titan Petroleum Corp., run by Montozzi and Leitner, fraudulently raised US$654,770 by selling interests in three separate oil and gas well drilling programs. It also alleges that when Titan became aware of the SEC’s investigation, Montozzi opened Magnum Petroleum Enterprises Inc.
and Magnum Oil & Petroleum Inc. to run the same scheme.

The commission has obtained permanent injunctions against Leitner, Montozzi,
Titan, Magnum Petroleum, and Magnum Oil.