| Bizarre Threat
By 'Attorney' For AngelCiti
*This just arrived
at the 911 news desk:
Jun 18, 2003 (financialwire.net via COMTEX) -- (FinancialWire) In a
somewhat
bizarre communication, the attorney for AngelCiti Entertainment (OTCBB:
AGLC),
Inc., Lawrence Hartman, has told FinancialWire that it is considering
suing tne
newswire after it published a news story about the company last
Thursday.
The article, provided to FinancialWire by The Promotion Report
Newsletter, noted
that AngelCiti Entertainment, Inc. and Classica Group, Inc. (NASDAQ:
TCGI) were
among numerous companies featured in promotional emails recently, and
specifically that “AngelCiti Entertainment was profiled by
AllPennyStocks.com, which disclosed that it 'has been compensated
$10,300 for
its efforts in presenting the AGLC profile to its database of
subscribers as
well as other investor relations services'."
Hartman, whose representation of the company was confirmed to
FinancialWire by
Evelyn Fallas, listed as the investor relations contact on the company's
press
releases, threatened the newswire: “as councel (sic) to the company and
I
would seriously suggest you examine your potential exposure before being
involved in any such future press releases."
When FinancialWire asked Hartman why he referred to the promotion
distributed by
AllPennyStocks.com as a “company press release," especially since the
company was not quoted at all in the article, or if there was anything
in the
FinancialWire article that was inaccurate, he responded that “the
Company
directly hired the contractor under a direct agreement between the
company and
the contractor, and the services of exposing the company to additional
prospective investors was paid for in cash by the company," essentially
confirming the June 12 news story, and adding the fact that the company
had paid
directly, something not disclosed by AllPennyStocks.com, as required by
the
Securities and Exchange Commission.
“The information pertaining to that agreement and the costs paid by
the
company will be reflected in the company's financials in the next 10Q."
While not responding to the question as to whether the information
distributed
by AllPennyStocks.com was in essence a “company press release," a phrase
used often by the purported attorney, Hartman did state that “any other
entity sending out press releases with respect to the company runs the
risk of
liability and exposure with respect to securites laws."
In its press releases, AngelCiti notes that “Worldwide Management"
provides
gaming software to over a dozen gaming websites. It does not indicate
what
relationship “Worldwide Management" has to the company, but notes that
AngelCiti's current websites are AngelCitiCasino.com, VacationCasino.com,
StarbrightCasino.com, WelcomeToOurCasino.com, QuePasaCasino.com,
UrlaubCasino.com, and LuckyDogCasino.com.
The AngelCiti president is listed in press releases as George
Gutierrez, and the
COO as Wei Hsin Lee.
When FinancialWire offered to consider publishing a correction in the
event of
an inaccuracy, Hartman rather vaguely sidestepped whether such an
inaccuracy had
been published: “If you feel you are in the right, that is your
perspective
and you are entitled to that perspective. The company itself has formed
its own
opinion of what the article was, whether there were inaccuracies, and
the
position it is taking in this matter. The matter is currently under
review for
further legal action and we feel that the company has a good case in
this
matter."
Hartman did not say what he wanted FinancialWire to “do" or “undo,"
just simply that unless some unspecified action is taken it intends to
sue.
Hartman failed to respond to a question about where he practices law,
although
his phone number has a Florida area code. Fallas told FinancialWire that
she
didn't know where Hartman is admitted to the bar, or the name of his law
firm,
but that she would “find out." She subsequently became unavailable.
Hartman
does not appear to be listed in standard attorney search engines, such
as
Martindale.com.
The U.S. Securities and Exchange Commission cautions investors about
stock
promotions on the Internet: "A company's web site may feature a glowing
press
release about its financial health or some new product or innovation.
Newsletters that purport to offer unbiased recommendations may suddenly
tout the
company as the latest 'hot' stock.
"Unwitting investors then purchase the stock in droves, creating high
demand and
pumping up the price. But when the fraudsters behind the scheme sell
their
shares at the peak and stop hyping the stock, the price plummets, and
investors
lose their money. Fraudsters frequently use this ploy with small, thinly
traded
companies because it's easier to manipulate a stock when there's little
or no
information available about the company. To steer clear of potential
scams,
always investigate before you invest!" the SEC concludes.
Individuals may report perceived violations resulting in perceived
manipulation
of price or volume at
www.sec.gov/complaint/cf942sec9570.htm and at the
Investrend Investor Resource Center.
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