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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
COMMISSION SECURITIES INVESTMENT SUBPOENAS EXCHANGE COMMISSION SCOTT NEWSLETTER NATURAL CONTRARIAN INTERNET E-MAILS SUBSCRIBERS SEEKING RECOMMENDS STOCK VIOLATIONS ANTIFRAUD INVESTMENT ADVISER REGISTRATION ADVISER REGISTRATION PROVISIONS FEDERAL SECURITIES LAWS VALID JUSTIFICATION FAILURE FEDERAL COURT LOS ANGELES SEEKING ORDER DIRECTING FRASER PURCHASE SALE MULTI-MILLIONAIRES OIL GAS |
Securities and Exchange Commission
Litigation Release No. 17639 / July 30, 2002
SECURITIES AND EXCHANGE COMMISSION v. SCOTT S. FRASER AND SPARKLIST.COM,
Civil Action No. 02-05485 GAF (PLAx) (C.D. Cal.)
On July 29, 2002, United States District Judge Gary A. Feess ruled
that Scott S. Fraser and SparkLIST.com must comply with investigative
subpoenas issued by the Securities and Exchange Commission. Fraser, of
San Diego, California, publishes a monthly investment newsletter
called The Natural Contrarian and operates an internet website called
ScottFraser.com. Sparklist, based in Green Bay, Wisconsin, is an
internet related company that sends e-mails messages for businesses
who wish to outsource their email newsletter. Sparklist was paid by
Fraser to send e-mails to the public about Fraser's and his
subscribers' investment success.
On May 13, 2001 and May 21, 2001, the Commission issued subpoenas to
Fraser and Sparklist seeking documents relating to Fraser's possible
violations of the antifraud and investment adviser registration
provisions of the federal securities laws. After Fraser and Sparklist
failed to comply with the subpoenas and did not provide any valid
justification for their failure to comply, the Commission filed an
application in federal court in Los Angeles seeking an order directing
Fraser and Sparklist to comply with the subpoenas.
The Commission's application alleged that Fraser recommends the
purchase and sale of securities in The Natural Contrarian and through
ScottFraser.com. The Commission is investigating whether Fraser has
falsely claimed that he has "turned over 1,170 of (his) subscribers
into MULTI-MILLIONAIRES," that his "oil and gas (stock) picks have
yielded over 1,805% combined returns," and that "over 87% . . . (of
his) stock recommendations . . . have increased on average 135% in the
past 28 months."
_________________________________________________________________
Modified 07/31/2002
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