Posted on 06/21/2002 5:10:07 AM PDT by Chairman_December_19th_Society
We will not tire, we will not falter, and we will not fail! [President Bush]
Good morning!! Do not let the victims of the attacks on New York and Washington, nor the brave members of our Nation's military who have given their lives to protect our freedom, die in vain!!
Israel is calling up reserves.
The Supreme Court said executing the mentally retarded is unconstitutional.
And 50% of those taking vacations this year say they plan to drive.
For AMERICA - The Right Way, I remain yours in the Cause, the Chairman.
/john
I bet the crime situatation hasn't gotten better there since the 60s...
I'm off to catch up!
More seafood gumbo for you tonite?? YUM!
Continued prayers for the people fighting that Colo. fire and for those affected...
They most certainly were not. The FDA has pretty clear rules. You test your drug in a variety of ways and carefully authenticate the tests. It costs a lot of money to do it. Then you submit the full data to the FDA. The person or company that files it knows what is going to happen. Filings can ranger from 100 percent sure they will approve to 50/50 to as low as 0 percent. This filing was in the 0 to 10 percent chance of acceptance category. It is obvious that the wonder drug promoter filed stuff that had a very very low chance of approval. That is why he was out their hyping his stock before the decision was made. Promote it after approval. Cash in after approval is the honest way to big bucks. The con is to hype a stock that will be worthless after the decision is announced. Only con artists hype and sell before.
The process goes like this. A developer gets and idea. He raises the money to develop and test. If all goes well he submits for approval. Then there is the wait. Once it is approved the stock sells for big bucks and the original developer and his original investors make big bucks by selling a bunch of their stock. The after approval buyers make a nice return. The original investers make a fortune. They then look for another long shot to back. Everyone is happy. The poeple that lose are the ones that back a drug idea that does not work. They invest in the research but a filing is never made. They lose their investment. But the returns are so good that the investors only have to hit once in a while to come out well over all. Selling stock and doing big promotions before approval makes little sense. The only reason to do so, is to get the suckers to invest before the bubble bursts and the Drug is rejected by the FDA.
This type con though not really illegal is what was going on. It is hard to prove that the guy knew it was going to be turned down when he filed. Prosecutors have to prove what some one believed to be the case. That is a heavy burden of proof. The law as it often does when people successfully skirt it is to nail them on some other infraction they did do. If you do a legal scam, you have to keep your nose very clean. A player can break some rules when the drug is approved. If the insiders had bought stock the day before a drug was approved they would not be prosecuted.
But the con artist took care of some of the people who helped hype the stock. He let them in on the con. That is what got him in trouble. If someone had offered me this stock, I would have said why are they promoting it now. If the drug was going to be approved the smart thing would have been to borrow every buck he could and buy as much of his own stock as possible before approval.... then sell. "Letting people in on a good thing" before approval is a con act best labeled as "too good to be true." And of cousre it isn't. Business people with business experience would not fall for this con. To believe that a business woman with the moxie of Martha Stewart fell for this old style con, is really stretching it a bit.
Step right up Ladies and Gentlemen and all with ready cash. I am about to let you in on the best deal in all of marketing history. Yours truly assisted by the best scientific minds in the world have filed, Yes I said filed, an application, Yes I said application, for a wonder drug that will cure, Yes I said cure, cancer. And for the small sum of just 50 dollars a share you can buy into this wonder drug. Once approved this stock will go to two or three hundred dollars a share. Think of it folks the scourge of cancer removed. What will people pay for a genuine cancer cure? Yes mam, what you are thinking is right ... what ever they have to. We filed an application with the FDA and that filing in on file. Why, you ask, do we want to sell stock now? Why do we tell you, so you can get in on the deal. Well just think. I can cure cancer. I love people. I date Martha Stewart. I am a humanitarian and decorate rooms in my spare time. Just buy my stock... and you will not only be rich but you will forever be a great humanitarian. The line forms over here folks.... Nice crisp 10's 20's and 50's are best. We are sorry we can't take checks.Poor Martha she didn't have a clue about what he was doing. It all looked so up and up to her, and she just happened to put in that stop order....
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