S.E.C. Civil Suit Says Faxes About 12 Stocks Were False
By RICHARD A. OPPEL Jr.
Published: July 17, 1999
It was the sort of thing that would grab some investors' attention: a letter mistakenly faxed to them -- written on Prudential Securities stationery and marked ''confidential'' -- predicting that shares of three companies would soon triple because ''major announcements are coming out this month.''
But officials of the Securities and Exchange Commission say there was no mistake. Faxing the letter, which was bogus, was an attempt by stock manipulators to dupe investors, they said.
On Thursday, the S.E.C. filed a civil lawsuit in Federal court in Miami accusing Globus Group Inc. of Miami and its principal, Anthony DiMarco, of fraudulently promoting the shares of a dozen tiny thinly traded companies, known as micro-caps. According to the S.E.C. officials, Mr. DiMarco, who used to be known as Bruce Gorcyca, is a former Internal Revenue Service agent who served more than three years in prison in the 1980's after pleading guilty to bribing a public official and making fraudulent statements to the I.R.S.
Lately, S.E.C. officials said, Mr. DiMarco has been sending faxes that trumpeted stocks to unsuspecting people. They said he created bogus documents -- made to appear as if issued by leading securities firms including Prudential, Citibank Global Asset Management and Merrill Lynch -- predicting that the shares of 12 companies would climb. He also issued false news releases for six of the companies, they said.
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