U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15082 \ September 27, 1996
Securities and Exchange Commission v. Atlantic Capital
Corporation, Wall Street Marketing, Inc., Pullman Publications,
Inc., Stephen DeCesare, Mark Missler, Patrick Kephart, Howard
Jenkins, Scott Mijares, Robert Thomas Beatty, Vincent St. Clair
Beatty, Michael Cardascia, David Scott Rossman, Adrian Wilson,
Timothy B. Daley, and David M. Connochie (M.D. Fla.) 96-1043-CIV-
ORL-19
On September 27, 1996, the Commission filed a Complaint in
U.S. District Court for the Middle District of Florida alleging
that a group of stock promoters engaged in an 18-month fraudulent
scheme in which they paid $477,580 in bribes to seven
stockbrokers to induce them to retail securities to the public.
The Complaint alleges that the promoters netted approximately
$2.6 million from the scheme.
The Complaint alleges as follows: From January 1, 1992
through June 30, 1993, Atlantic Capital Corporation of Orlando,
Florida published six brochures entitled "Investors Edge," each
of which recommended investment in a different little-known,
publicly traded company. Each company paid Atlantic for this
service in stock options, which Atlantic later exercised to
purchase stock. Atlantic distributed each brochure to at least
100,000 potential investors. Thousands of individuals responded
to the brochures, via reply cards or by calling Atlantic's toll-
free phone number. Atlantic supplied these "leads" to
stockbrokers who had previously agreed to recommend certain of
the stocks to investors, in exchange for bribes to be based upon
the quantity of shares sold. Atlantic and its affiliates then
sold their stock for net profits totaling $2.6 million. The
brochures failed to disclose Atlantic's ownership of options or
stock in the companies being promoted, or the arrangements for
payment of bribes.
Named as defendants (collectively, the "Promoter
Defendants") were:
Atlantic Capital Corporation, Wall Street Marketing, Inc.,
and Pullman Publications, Inc., affiliated corporations
SNIPPETS:
U.S. SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission v. Atlantic Capital Corporation, Wall Street Marketing,
On September 27, 1996, the Commission filed a Complaint in U.S. District Court for the Middle
From January 1, 1992 through June 30, 1993, Atlantic Capital Corporation of Orlando, Florida
Atlantic distributed each brochure to at least 100,000 potential investors.
Thousands of individuals responded to the brochures, via reply cards or by calling Atlantic's
Atlantic supplied these "leads" to stockbrokers who had previously agreed to recommend
Atlantic and its affiliates then sold their stock for net profits totaling $2.6 million.
Named as defendants were:
Stephen DeCesare, age 35, of Winter Park, Florida, an officer and director of Atlantic;
Scott Mijares, age 36, of Winter Park, Florida, an employee of and/or consultant to Atlantic.
Robert Thomas Beatty, age 54, of Hollywood, Florida, who was employed by First New England
David Scott Rossman, age 37, of Castlerock, Colorado, who was employed by Kemper Securities
The Complaint charges all defendants with violations of Section 17of the Securities Act of
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