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Show ADAM M. DUNCAN Duane and Monte. They formed a real estate company they had around here and had a few mortgages going nowhere. Ah, a bunch of sophisticates from Fort Lee, New Jersey said, "We want to merge our software computer company into yours." The stock had never traded very well; it's what we call a farmer's market, just folks trading over the back fence, maybe just 50 cents or 25 cents. So what these fellows did in New York was get the stock holders list of Dumont and it was all over the West and they would send a person out and they'd say, "We' 11 pay 50 cents for all Dumont stock you can buy. Keep it in the name of the person you buy it from, and have his signature guaranteed and we' 11 give you 10 cents a share." If you'd buy it for 25 cents, you'd make the difference. They then bought up most of the stock from these people. They then put the software company, which in fact had nothing, and the stock traded in 7, 8, 9, 10 dollars. Ah, millions of dollars worth of that stock that these folks in Fort Lee, New Jersey had purchased for 25 cents, 50 cents, was dumped. We litigated that on behalf of some of the stock holders who had sold at 25, 50 cents to these people without a full disclosure. The SEC has brought criminal actions, they've brought injunctions in San Francisco and Las Vegas, Nevada, New Jersey. The fact is there are an awful lot of folks sitting on 7 or 8 26 |
