(Adds comment from attorney in 15th and 16th paragraphs.)
By Dinah Wisenberg Brin Of DOW JONES NEWSWIRES PHILADELPHIA -(Dow Jones)- National Lampoon Inc. (NLN) Chief Executive Daniel Laikin and six others were charged Monday with conspiracy and securities fraud related to alleged schemes to artificially inflate the prices of publicly traded stocks, Acting U.S. Attorney Laurie Magid said Monday.
Laikin and three of the other defendants are accused of conspiring to artificially pump up shares of Los Angeles-based National Lampoon, which owns interests in the "Animal House" and "Vacation" films, possibly as part of an effort by the CEO to make the company more attractive to potential suitors.
The charges in the cases involving National Lampoon and two other companies arose from a federal sting operation involving a secretly cooperating witness, so the stocks weren't inflated to the extent the alleged conspirators had hoped, according to federal officials.
In addition to criminal charges, the defendants also face civil fraud charges filed by the Securities and Exchange Commission. The SEC filed a complaint against National Lampoon, which is listed on the NYSE Alternext, formerly the American Stock Exchange.
Laikin and four other individuals were arrested Monday. Two other defendants are to turn themselves in this week, authorities said.
Laikin, 46, of Los Angeles, controlled more than 40% of National Lampoon's stock, said Magid during a news conference in which she discussed the CEO's indictment by a federal grand jury.
"Obviously he has significant financial incentive to drive up the price of the stock," said Magid.
Federal authorities accuse Laikin of arranging to pay someone a kickback to drive up the stock's price from $2 to $5. Had that occurred, the value of Laikin's holdings would have increased by $15 million, said Magid.
From March to June of this year, Laikin allegedly conspired with Dennis Barsky, 60, of Las Vegas, listed on National Lampoon's SEC filings as a consultant, to pay stock promoter Eduardo Rodriguez, 49, of Livingston, N.J., and a cooperating witness to artificially inflate the stock, authorities said.
National Lampoon had no comment, according to a spokeswoman, Marcy Goot. Phone information had no listing for an Eduardo Rodriguez in Livingston, N.J. An answering machine picked up at a Dennis Barsky residence in Las Vegas.
Rodriguez, who also is linked to the other cases, allegedly enlisted a stock promoter, Tim Dougherty, 29, of Webster, N.Y., to assist in the National Lampoon scheme, the U.S. attorney's office said. Dougherty and Rodriguez were not in custody Monday and were expected to report to authorities later this week, officials said. Dougherty's voice mailbox at a firm he is associated with, Expedite Ventures, was full, and someone answering a residential number listed in his name said he wasn't at home.
Dougherty received about $40,000 to make purchases of National Lampoon stock; he did so over a number of days, using different accounts to give the false impression of a steady demand, according to the U.S. attorney's office.
Laikin told Rodriguez and the cooperating witness he wanted to drive up the stock price to make the company more attractive for strategic partnerships and acquisitions, the office said.
Authorities also accused Rodriguez of participating in kickback schemes to manipulate the over-the-counter shares of Advatech Corp. (ADVA) and Swedish Vegas Inc. (SWDV). Among others charged are Advatech Chief Financial Officer Richard J. Margulies, 58, of Edison, N.J. The SEC also filed a complaint against Advatech, which is based in West Palm Beach, Fla.
Margulies' attorney, Stephen LaCheen, said his client has no prior criminal record, was released on his own recognizance and doesn't believe he has done anything wrong. LaCheen said he had not met Margulies before Monday and had yet to discuss the case at length with him.
"He can't imagine how he can be accused of doing something wrong," LaCheen told Dow Jones Newswires.
The SEC ordered a suspension of trading in National Lampoon and Advatech stock Monday morning. Such suspensions typically last 10 days, an SEC official said at the news conference. Trading in Swedish Vegas shares was suspended in July after the cooperating witness made an initial stock purchase with Federal Bureau of Investigation funds.
Although none of the defendants live in Pennsylvania, some acts related to the alleged schemes took place in the state, said Magid.
-By Dinah Wisenberg Brin, Dow Jones Newswires; 215-656-8285; dinah.brin@dowjones.com
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Publié le 15 Décembre 2008 Copyright © 2008 Dowjones