Latest Comentaries
-
April 28, 2008. Sprott's Timminco dealings openly questioned
-
April 23, 2008. Timminco¹s convoluted dealings and "furious" insider selling comes to light.
-
April 22, 2008. Q-Cells acknowledges having no relevant information on Timminco.
-
April 21, 2008. Globe and Mail changes course on Timmico stock promotion.
-
March 31st 2008. Q-Cells makes outlandishly conflicting claims about upgraded metallurgical silicon.
-
December 4, 2007 - Ackman's Charitable Contribution Shows Value of Short-Selling
-
October 17, 2007 BusinessWeek Facelift Fails to Beautify Work of Gene Marcial
-
October 29, 2007 REFR: 42 Years of Hype
-
October 29, 2007 After 42 years of Hype REFR resorts to recycling old promotional schemes.
-
April 09, 1997 - A Free Market Solution To Persistent Stock Fraud, by Manuel P. Asensio
|
|
|
|
|
|
Hemispherx Biopharma, Inc.
Mr. Asensio began his analysis of Hemispherix Biopharma in 1998. His research quickly revealed the company’s troubling history of litigation. It seemed Hemispherix used the courtroom to protect itself from criticism and to conceal important information about its business practices from public attention. Of all his short selling projects, Mr. Asensio’s work on Hemispherix was most difficult. He would have fared better if he simply stayed away from the company altogether. However, Hemispherix attracted his attention for obvious reasons. Its stock was grossly overvalued and Mr. Asensio found it unacceptable to permit company executives to exploit uninformed investors. Mr. Asensio’s coverage of Hemispherix led to his involvement with congressional investigations of the fraudulent company, after efforts to work with regulators failed.
Hemispherix was one of the last stock frauds committed by the bucket shop Stratton Oakmont before a criminal investigation forced the organization to close. Mr. Asensio believed the American Stock and Options Exchange (“AMEX”) did not exercise sufficient diligence to protect investors from Hemispherix and so investigated the company himself. He soon discovered that both a Governor of AMEX and a high ranking floor official owned shares of Hemispherix. Still worse, Mr. Asensio obtained an offering memorandum in which the AMEX governor boasted of profits earned by trading Hemispherix shares.
Mr. Asensio’s discoveries soon led him to speak with the press. In addition, Mr. Asensio met with two members of congress and the Chief of Staff of the Ranking Minority Leader of the House Commerce Committee, responsible for overseeing the U.S. Securities and Exchange Commission (“SEC”). The Ranking Member wrote the U.S. Comptroller General about the issues with AMEX and noted Mr. Asensio’s allegations. The Comptroller agreed to investigate the case. Mr. Asensio fully cooperated with this investigation. In November 2001, the GOA issued its report on the matter (“Improvements needed in the AMEX Listing Program”). As a result, AMEX was sanctioned and forced to incorporate SEC-mandated regulations into its listing procedures. The AMEX leadership changed and the new AMEX leader was eventually barred. The Floor Official was also barred.
|
|
|
|
|
|
|
Investor Education Section
|
