Securities and Exchange Commission
Litigation Release No. 16399 / January 5, 2000
S.E.C. v. Yun Soo Oh Park a/k/a Tokyo Joe and Tokyo Joe's Societe
Anonyme Corp., (N.D.IL., Case No. 00C 0049, filed January 5, 2000)
On January 5, 2000, the Securities and Exchange Commission (SEC) filed
an action charging that Yun Soo Oh Park a/k/a Tokyo Joe (Park), and
Tokyo Joe's Societe Anonyme Corp. (Societe Anonyme), a corporation
under Park's control, engaged in a scheme to defraud members of his
Internet stock recommendation service and the investing public by,
among other things, his undisclosed trading ahead of shares he
recommended over the Internet for purchase, posting of false
performance results, and recommending the stock of an issuer without
disclosing that he had indirectly received compensation from that
issuer.
Specifically, the Complaint alleges that Park, a resident of New York,
New York and the sole shareholder of Societe Anonyme, provides
investment advice over the Internet, including stock picks, to his
clients, largely members of an Internet day trading community who pay
$100 to $200 per month to Societe Anonyme for the privilege of
receiving his advice. Park provides such advice via his own web site,
known as "Tokyo Joe's", via e-mails to subscribers of his stock
recommendations, and via a real time chat room within his web site
where he discusses his picks and other investment matters in more
detail.
The Complaint alleges that Park has engaged in a scheme to defraud by
trading ahead of his recommendations and has obtained substantial
profits from such activity. The Complaint alleges that Park regularly
buys shares of a stock before recommending that Societe Anonyme
members buy the same stock. He then pumps up his members interest in
his upcoming recommendations by sending messages typically describing
his picks as a sure thing or something he expects to double. When he
identifies his pick of the day, many Societe Anonyme members purchase
the stock, driving up the stock's price and volume. Park then quickly
sells the same stock during this buying flurry at a profit, often
entering sell limit orders within minutes of his buy recommendation.
Park fails to adequately disclose his prior ownership of a recommended
stock, and his intent to sell his shares while he simultaneously
recommends the purchase of such shares.
The Complaint further alleges that Park attracts new Societe Anonyme
members and recruits current members to follow his recommendations by
posting numerous effusive testimonials as well as false and misleading
performance data on his web site. Specifically, the Complaint alleges
SNIPPETS:
S.E.C. v. Yun Soo Oh Park a/k/a Tokyo Joe and Tokyo Joe's Societe Anonyme Corp.,
On January 5, 2000, the Securities and Exchange Commission filed an action charging that Yun
r without disclosing that he had indirectly received compensation from that issuer.
Specifically, the Complaint alleges that Park, a resident of New York, New York and the sole
Park provides such advice via his own web site, known as "Tokyo Joe's", via e-mails to
The Complaint alleges that Park has engaged in a scheme to defraud by trading ahead of his
The Complaint alleges that Park regularly buys shares of a stock before recommending that
When he identifies his pick of the day, many Societe Anonyme members purchase the stock,
Park then quickly sells the same stock during this buying flurry at a profit, often entering
Park fails to adequately disclose his prior ownership of a recommended stock, and his intent
The Complaint further alleges that Park attracts new Societe Anonyme members and recruits
Specifically, the Complaint alleges that his performance data includes winning trades he did
Finally, the Complaint alleges that, in at least one instance, Park indirectly received
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