Jerome Armstrong – What’s Wrong With This Picture
I’ve come across a mountain of stuff and it’s going to take some legal and financial expertise to sort it out. This post at Plank today makes no sense given all the material I have been reading from poster MyDDdotcom aka Jerome.
Kos: Note how Glenn Reynolds is fueling it with his typical passive aggressive, "I don’t think it’s a big deal, but let me provide links to everyone who thinks this is THE BIGGEST STORY EVER!"
And Jerome’s case, if it could be aired out, is a non-story (he was a poor grad student at the time so he settled because he had no money). Jerome can’t talk about it now since the case is not fully closed. But once it is, he’ll go on the offensive. That should be a couple of months off.
Okay, then how is it on what seems to be another stock deal which ended in litigation, posting as MyDDdotcom, Jerome Amstrong appears to have posted this, among many other items of interest, in 2001.
in fact, threw another 6k shares in the pot from a good trade elsewhere, just figure, what the hay … In fact, before I left for India, I bought 20k more shares at $1, that I wound up selling for 1/10th that, and that’s just an example
He also appears to have somehow moderated the board and was pumping up an entirely different stock that resulted in more than one lawsuit possibly involving a company for which he is listed as an agent, of sorts.
SIERRA BROKERAGE SERVICES, INC. – Richard Geiger, Jeffrey A. Richardson, Aaron Tsai, Michael E. Markow, Francois Goelo, Yongshi Yang Ke Luo, Jerome B. Armstrong, Global Gurantee Corp, K&J Consulting, M&M Management, BluePoint Linux Software Co.
There’s a lot more to that I’ll post here, but I should also point out that for a poor graduate student, he didn’t do badly in the legal department, securing the services of an apparent heavyweight.
JEROME B ARMSTRONG Irving M Einhorn
defendant (See above)
[COR LD NTC]Biography: Attorney, U.S. Securities and Exchange Commission, Chicago Regional Office, 1972-1974. Branch Chief, Enforcement, 1974-1975. Senior Trial Counsel, 1975-1980. Assistant Chief Trial Attorney, U.S. Securities and Exchange Commission, Division of Enforcement Trial Unit, Washington, D.C., 1980-1984. Regional Administrator, Los Angeles Regional Office, U.S. Securities and Exchange Commission, 1984-1989. Executive Vice President and General Counsel, Pacific Brokerage Services, Inc., Member of NYSE, 1989-1990. Law Offices of Irving M. Einhorn, 1990-.
Then there’s this guy from the Cayman Islands who still seems to think about Poor Little Jerome as late as 2003. You may have to use word search to find these sentences, but they are here.
By: sailbad43
11 Sep 2003, 06:16 PM EDT
Msg. 13221 of 13223
Jump to msg. #Poor little Jerome..Jackson
In answer to case number ()3 CV 326 with Judge Holschuh and Magistrate Judge Able, I humbly submit this document.
Over 3 months ago, without sufficient funds to defend myself through a lawyer, I asked for the court to appoint one. To date, there has been no response from the court. I am compelled by the Plaintiff and court, under the threat of default, to answer the allegation without any form of representative defense.
Answering to the Commission’s case, I will limit my response to the matters dealing with Jerome B. Armstrong, myself. I have previously submitted a Wells statement, which I humbly submit is read when considering the validity of the case brought against myself by the Plaintiff.
Paragraph 8: Armstrong denies posting on the Raging Bull internet site about Bluepoint in return for compensation.
Paragraph 69: Armstrong denies knowledge of his postings being part of an orchestrated scheme for individuals to tout Bluepoint. Armstrong would like to point out that, alongside the Plaintiff’s statement that "Armstrong posted over 80 times on the Raging Bull website in the first three weeks", it is a fact that Armstrong posted over 8000 posts on Raging Bull, on over 250 stocks in the chat threads, during the years 1998-2000. There is nothing in regard to the amount or content of posts I made about Bluepoint that is inconsistent with my normal posting practice at that time.
Armstrong denies that he was compensated by Goelo and Markow through his purchase of stock in separate companies. Armstrong recalls that at least one of the three stocks under question was bought at above the market price.
Paragraph 70: Armstrong denies that he profited from selling Bluepoint. An examination of the trades by Armstrong of BLPT will show that Armstrong lost many thousands trading Bluepoint.
Paragraph 74: Armstrong does not know the specific amount he gained from selling the shares of three securities in question he purchased from "Markow and Goelo". Armstrong would add that he recalls having purchased a total of five stocks from "Markow and Goelo". Besides the three securities in question, and Bluepoint, there is one further stock, apparently not included by the Plaintiff, that was purchased for $10,000, which is now held in certificate, and currently, more or less worthless.
Paragraph 104: Armstrong denies the allegations.
Paragraph 105: Armstrong denies the allegations.
Sincerely,
Jerome B. Armstrong
followed by his signature and dated Aug 29th, 2003.
Sailbad
But, getting back to this other company and board MyDDdotcom has dozens of posts in which he appears to be doing the same thing, possibly intermingled with some of the very same people. A few examples:
Stop the innuendo’s, if you think you’ve got something that’s "criminal" here, cut and paste it, I doubt it. Yours is a ‘flagged’ post to make such claims without backing it up, and defending errorl as well, oh my.
Here a poster attempts to post some negative information, possibly scaring some away.
michael markow was a consultant for amtec, a failed telecom a couple of years ago…do these filings sound a lot like the prs put out by worldwide for shps?….
And MyDDdotCom next posts on his being banned and touts the company even more.
errorl, deleted by the board, comes back under a new alias to respond to one of the only posts actually left. LOL, at least investorshub is going to make the bashers work overtime even to get a worthless word in…. SHPS looks very strong in this tepid mkt, wait till the mkt rebounds, it’ll be SKY time!~:)
more – SHPS uptrending, getting some volume too, just needs some PR’s and new investors to start to rumble.
more It’s for real, I wouldn’t still be here if it were otherwise, would have dumped and run after having survived SHPS shopps.com. The mkt sucks now, and will soon get better, SHPS will not go under 1.25, just live with it at this level for a little while longer and know that you’ll get your info in time.
Eventually there was a reverse merger, then one company filed a suit alleging the other hadn’t disclosed properly.
I own shares in ATEL. ATEL did a reverse merger into SHPS. SHPS has now filed suit to have the merger rescinded. ANyone have any idea what might happen to my ATEL shares if the recission goes through. Here is info about the case that was filed in Utah. Any help is soooo much appreciated.
Here’s the original Share Exchange agreement which has Jerome Armstong owning, or due at least some stock.
NUMBER OF SHARES
Global Guarantee Corporation 1,574,000
15760 Ventura Boulevard
Suite 1020
Encino, California 91436
…
Jerome B. Armstrong
P.O. Box 975 25,000
Seaside, OR 97138
To close – I am not alleging any illegal activity on the part of any person or company at links above. I am merely pointing out that, for a poor graduate student, Jerome Armstrong sure did a lot of posting about big money deals, his own and others, along with clearly dominating the discussion as a key figure.
Who knows, maybe people even made money off of it all. But it looks like more MyDD dotcom madness to me. Unfortunately, I’m not qualified to say.
I’m just going to do a link dump in case I missed anything. You’ll need word finder for longer documents. And you can click through the MyDDdotcom posts if you wish to read them all.
Update: Because I couldn’t leave this out. Doesn’t sound like a poor grad student to me. You can page through the MyDD posts on the board at bottom link. It’s a wonder Poor Little Jerome isn’t just doing philanthropy by now, what with all his money. ; )
publically, but privately I’ve accumulated 8k this week at 1.31 Status is day to day right now, in the final stages of nailing down the details of the agreement. Lots of money is involved, over 30M, and their are 5 different parties involved in the negotiations, so lots of lawyers double checking. I know everthing is done, Boeckler is just running a fine comb through the deal, he is just about there, you should see lots of volume kick in once the deal is done, but I know of major folks who are going to support at 1.25, so I am just a little bit above them:)
Two weeks at the most now. They don’t have any deadlines, just their next 10Q which is due by Nov 15th, and they won’t be late this time. The 8k will come when they are done with the deal, should pop us up to $5 pretty easy I think.
http://www.sec.gov/litigation/complaints/comp18088.htm
http://www.siliconinvestor.com/readreplies.aspx?msgid=17742777
http://www.investorshub.com/boards/board.asp?board_id=117&NextStart=631
Ko$sola/JeromeGate: Pandemic!
Before La Blogga Nostra breaks my kneecaps, let me make a request of my fellow “wingnut bloggers”: * DO RESEARCH! * Dan Riehl’s getting the job done. Dan has done yeoman’s work exposing the Corzine connection and Armstrong’s $160K SEIU contract. While …
Markos Moulitsas Zuñiga (Daily Kos) in good compan
While it is not the purpose of this post to excuse the actions of Moulitsas Zuñiga and Armstrong Armstrong, I think it important to note that this request for discretion is not unprecedented.
kOS Kontinues to Kry “Ko$ola” Konspiracy!
Following yesterday’s reveal by TNR’s Jason Zengerle that kOS sent out an e-mail dictum to the nutroots, ordering them to ignore the Armstrong-shaped man behind the curtain -
My request to you guys is that you ignore this for now. It would make my life
kOS Kontinues to Kry “Ko$ola” Konspiracy!
Following yesterday’s reveal by TNR’s Jason Zengerle that kOS sent out an e-mail dictum to the nutroots, ordering them to ignore the Armstrong-shaped man behind the curtain -
My request to you guys is that you ignore this for now. It would make my life
Baa, baa, Kos sheep
Hat tip to Dan Riehl, who got burnt by Armstrong and has plenty more to say.
POLITICS: Hype For Hire: Where Are Warner & Brown?
OK, it’s all been good fun following the interesting coincidence of Kos supporting candidates after they hire his friend, co-author and sometime business partner Jerome Armstrong, and watching Kos’ subsequent meltdown trying to contain the damage. But …
“Boeckler is just running a fine comb through the deal, he is just about there, you should see lots of volume kick in once the deal is done, but I know of major folks who are going to support at 1.25, so I am just a little bit above them:)”
Jerome Aromstrong just Kan’t spell. The person he is talking about is Stuart Bockler not “Boeckler”:
10-07-04 — Bockler, Stuart — Indictment — News Release
New Jersey Internet Stock Promoter Indicted for Failing to Disclose Compensation from Global Datatel, Inc.
NEWARK – A New Jersey Internet stock promoter was indicted today for failing to disclose his compensation while touting Global Datatel, Inc. to the investing public, contrary to federal securities laws, U.S. Attorney Christopher J. Christie announced.
The Indictment charges that Stuart Bockler, 52, of Marlboro Township, controlled and operated three companies and a website engaged in the business of corporate public relations activities: International Market Advisors, Inc. (IMA), International Market Call Inc., Imcadvisors, Inc., and http://www.imcadvisors.com.
According to the Indictment, in early January 1999, Bockler and IMA executed a consulting agreement with Global, wherein Bockler agreed to write and disseminate Global investment reports that detailed Global’s products, management results, prospects, trading history, and projected results and stock performance. The agreement was for a one-year period.
Under the Consulting Agreement, in consideration of Bockler’s public relations activities, Global agreed to pay IMA and Bockler: 25,000 “free trading” shares of Global stock; warrants to purchase 150,000 free trading shares of Global stock at a price of $5.50 per share; and a bonus of an additional 25,000 free trading shares, if Global’s stock price reached $15 for ten trading days during the one-year period of the consulting agreement.
In Oct. 13, 1999, Bockler disseminated a Global investment report to the investing public promoting Global. Bockler posted the investment report to the IMA website and sent approximately 30,000 emails to recipients directing them to IMA’s website to view the report. The investment report contained, among other things, a “Strong Buy” recommendation, and Global stock price projections of $60-$75 for the long term and a price projection of $30-$45 for the short term. The investment report failed to disclose Bockler’s compensation and it further failed to disclose that Bockler had received profits of approximately $175,000 from the sale of 18,750 free trading Global shares he had received from Global in January and February 1999.
Bockler is expected to be arraigned on the one-count Indictment within the next two weeks before U.S. District Judge Joseph A. Greenaway, according to Assistant U.S. Attorney Mauro M. Wolfe. Bockler was not arrested by federal authorities.
The Indictment further charges that Bockler disseminated the October 13 report knowing that he had received and sold 18,750 free trading shares of Global stock, earning approximately $175,000 in profits, and had received 200,000 restricted shares, as renegotiated compensation.
On Oct. 13, 1999, based on a closing price of $6.50, the 200,000 restricted shares were worth approximately $1.5 million, a fact which Bockler also intentionally failed to disclose.
According to the Indictment, under federal securities laws, pursuant to Section 17(b) of the Securities Act of 1933, a stock promoter who publishes information about a public company, though not purporting to offer a security for sale, is required to disclose the existence and amount of any consideration he received or expected to receive in connection with that promotion. This provision was commonly referred to as the “Anti-Touting” provision.
This Indictment is related to a guilty plea entered earlier this year.
In April, Allen Barry Witz, 63, a Beverly Hills, Calif. attorney, pleaded guilty before Judge Greenaway to conspiracy to commit securities fraud in connection with Global Datatel, Inc., a Florida-based company that he and others fraudulently touted as a fast-growing, profitable venture, along with its Latin American subsidiary, eHola.com Online Service Network.
The Information to which Witz pleaded guilty in April 2004 identified, by initials only, two New Jersey men – J.L, of Clifton and S.B. of Marlboro – who allegedly conspired in the pump-and-dump scheme. Two other co-conspirators are identified as R.B. of Boca Raton, Fla., the chief executive officer of Global Datatel, and M.H., a Colombian citizen residing in Davie, Fla., who was president of eHola.com. All four were unindicted co-conspirators.
Witz admitted that he and his co-conspirators used false and misleading press releases and interviews, investor “road shows” and a stock-picking website, http://www.imcadvisors.com, to tout Global Datatel and eHola.com to raise and maintain the stock price of Global, which was traded on the Over-the-Counter Bulletin Board, under the symbol GDIS. The stock-picking website was controlled by S.B., according to the Witz Information.
In today’s Indictment, Bockler was not charged with knowing that the Global investment reports he disseminated were false and misleading.
The investigation surrounding Global Datatel and others associated with it continues.
On the one count of undisclosed compensation, Bockler faces a maximum penalty of five years in prison and a $250,000 fine or twice the gross proceeds of the fraud or twice the loss to any victims.
Under U.S. Sentencing Guidelines, the judge to whom this case is assigned would, upon conviction, determine an actual sentence based upon a formula that takes into account the severity and characteristics of the offense, and the defendant’s criminal history, if any. Parole, however, has been abolished in the federal system. Under Sentencing Guidelines, defendants who are given custodial terms must serve nearly all that time.
Christie credited Special Agents of the FBI, under the direction of Special Agent in Charge Joseph Billy, Jr., in Newark; Postal Inspectors with the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Martin D. Phanco; and Special Agents of the Internal Revenue Service Criminal Investigation section, under the direction of Special Agent in Charge Patricia J. Haynes.
Christie also thanked the Securities and Exchange Commission, Southeast Regional Office, headed by Regional Director David Nelson, for its considerable work in the case.
-end-