Paul Singer and Elliott International Capital Advisors, Inc. were among owners of GenesisIntermedia.com, Inc., according to SEC filings. The GenesisIntermedia story is a fascinating story with a web of international crooks and domestic cons. Here’s are just a couple tidbits. Investing in any company with Ramy El-Batrawi as CEO is really, really questionable judgement, LOL. If you dig into the story, you can even find the head of Native Nations as an ex-Milken DBL employee, lol.
http://www.rgm.com/articles/Deutsche3.html
The Street.Com
By Matthew Goldstein
September 11, 2003
A central figure in a $130 stock manipulation scheme that led to the collapse of two small brokerage firms pled guilty Thursday in a California federal court.
Kenneth D’Angelo pleaded guilty to charges of conspiracy to commit securities fraud and wire fraud in a bizarre plot that led to a separate civil lawsuit against Saudi Arabian arms dealer Adnan Khashoggi and Deutsche Bank.
The Securities and Exchange Commission, meanwhile, filed civil charges against D’Angelo. The agency wants to disgorge the profits he generated from the scheme, which stemmed from a plan to manipulate shares of GenesisIntermedia, a defunct Los Angeles marketing and advertising firm.
D’Angelo artificially pumped up the price of GenesisIntermedia’s shares in order to convince a series of brokerages to loan money against the stock. D’Angelo is alleged to have orchestrated the scheme, which collapsed in September 2001, in conjunction with the company’s chief executive officer Ramy El-Batrawi, who is not identified by name in either the SEC complaint nor in a criminal filing by federal prosecutors.
The SEC, in its complaint, said the two men also had an accomplice, an unidentified individual who is described as “Saudi Arabian national.’’ A source familiar with the investigation said the alleged accomplice is Khashoggi.
(snip)
http://www.sec.gov/litigation/litreleases/2006/lr19655.htm
Litigation Release No. 19655 / April 13, 2006
SEC v. Ramy El-Batrawi, et al., United States District Court for the Central District of California, Case No 2:-06-cv-02247-(MRP)(RZ)
SEC Files Fraud Charges Against Ramy El-Batrawi, Adnan Khashoggi, GenesisIntermedia, and Others Arising Out of $130 Million Stock Loan and Manipulation Scheme
The Securities and Exchange Commission today filed a complaint in the United States District Court for the Central District of California charging Ramy El-Batrawi, Adnan Khashoggi, and others with orchestrating a scheme to manipulate the stock price of GenesisIntermedia, Inc. (GENI), a now-defunct public company that was based in Van Nuys, California. The Commission alleges that the scheme, which occurred between September 1999 and September 2001, resulted in the misappropriation of more than $130 million, the collapse of several broker-dealers, and the largest bailout in the history of the Securities Investor Protection Corporation.
According to the complaint, Ramy El-Batrawi, GENI’s Chief Executive Officer at the time, and Adnan Khashoggi, with the assistance of Richard J. Evangelista, Wayne Breedon, and Kenneth P. D’Angelo (a stock loan broker previously charged by the SEC and criminal authorities), developed a manipulation scheme by which they could profit from lending GENI shares (rather than selling them). The complaint alleges that El-Batrawi and Khashoggi, through an offshore entity called Ultimate Holdings, loaned approximately 15 million shares of GENI stock to Evangelista’s employer at the time, Native Nations Securities, a New Jersey broker-dealer, and more than a dozen other broker-dealers in exchange for cash based upon the market value of the shares.
(snip)
But, but, but........."security expert Rooty" can't keep up with all of his contributors-----because----when he was mayor, he was too busy lowering crime rates, cleaning up NY, getting people off welfare, and helping victims cope with 911.