The strange death of Agora Inc.'s Rey Rivera in 2006, whose name appeared on Porter Stansberry's Rebound Report is covered up and he is made to look insane by the SEC attorney Karen Martinez who along with Utah attorney Brent Baker who coincidentally was at the WTC on the day it 'collapsed'.It is rumored that many crucial SEC archives were destroyed at Building 7 that day,etc.The death of Rey Rivera from a 14 story fall from Baltimore's Belvedere Hotel in 2006 was just one year after both Agora Inc's Stansberry and Lila Rajiva contacted me in 2005 and tried to entice me to visit their office in Baltimore to 'prove' somehow that my complaints about Davidson and Stansberry were untrue.If I had travelled to Baltimore I might have met the same fate that Rey Rivera,Stansberry's employee and victim did, by having his name placed on Stansberry's Rebound Report that as usual promoted worthless fraudulent and usually Nevada incorporated penny stocks that the U.S.SEC always covers up and pretends not to notice even in the internet age that should make oversight of such fraud almost impossible with software detection alone.How Homeland Security can't catch them is anybody's guess....
Martinez
Baker contacted me regarding my complaints to the SEC about the REAL founder James Dale Davidson,(not Bill Bonner) in 2003 and wanted me to phone him so that there would be no paper or email trail when he threatened me to shut up and be quiet about J.D.Davidson's and Porter Stansberry's biotech penny stock frauds Endovasc and Genemax being victims of so-called 'naked short selling' to distract from the fact that their share prices fell because of illegal pump and dump ops the SEC and Baker and Martinez were busy covering up in their Utah SEC headquarters and removing all mention of their comlaint-litigationAND REMOVING ALL MENTION OF IN THEIR COMLAINT LITIGATION AGAINST dAVIDSON AND
http://www.motherjones.com/politics/2015/09/agora-huckabee-conservative-bible-cures
http://www.motherjones.com/politics/2015/09/agora-huckabee-conservative-bible-cures
How This Company—and Mike Huckabee—Cashed In by Scaring Conservatives
A little-known publisher has built an empire on selling Bible cures and apocalyptic stock tips.
Last year, a man named Brian Chambers announced a world-changing advance: An international research organization called the Health Sciences Institute had found an incredible cure for cancer hidden in the Book of Matthew. For just $74, you, too, could discover the secret.
That was the breathless pitch emailed to hundreds of thousands of Huckabee's followers in January, beneath a "special message" from the Republican presidential candidate trumpeting "important information." Upon closer inspection, the divine remedy—eating fewer carbs—was never recommended by St. Matthew. Chambers is not a doctor, and the studies on starvation diets he cited make no mention of "cures."
The Health Sciences Institute is part of a company called NewMarket Health, which is just one asset of a Baltimore-based publishing empire named Agora Inc. Agora's subsidiaries and affiliates publish more than 40 newsletters and sell more than 300 books on a range of topics, including biblical health tips, natural-healing supplements, and "insider" investment advice—a mix of ideas the company considers the intellectual equivalent of the marketplace of ancient Athens. To find new readers for its ever-expanding catalog of publications, Agora's subsidiaries have tapped into a network of conservative heavyweights, including Huckabee, Ron Paul, and Newt Gingrich, who sell access to their massive email lists to advertise Agora's products.
John Stich
Gingrich sent out more than a dozen Agora-related emails after he dropped out of the 2012 race, including one from an investment newsletter warning that Obama might seek a third term (sell, sell, sell!). In April, Paul appeared in a 51-minute video for an Agora subsidiary in which he argued that the United States was on the verge of martial law and societal collapse. The libertarian patriarch, whose own Survival Report newsletter once played to its white readers' worst fears, urged viewers to buy a newsletter subscription to find out more.Conservative outlets including National Review and Townhall have also rented their email lists to Agora subsidiaries. While it's not unusual for publications (including Mother Jones) to send sponsored messages to their subscribers, Agora's emails skirt the line between spammy and scammy. An email sent last year to followers of the popular right-wing site RedState on behalf of the Health Sciences Institute claimed that the Obama administration was blocking a miracle cure that "vaporizes cancer in six weeks."
These disingenuous endorsements for dubious products epitomize what historian Rick Perlstein has dubbed "mail-order conservatism," the monetization of right-wing paranoia that started in the 1970s and has flowered ever since a secret Muslim socialist won the White House. Glenn Beck, like many of his talk-radio colleagues, has warned of the collapse of the global financial system while shilling for gold companies. Conservative operativeshave created a booming field of "scam PACs," political action committees that ostensibly raise money to help popular candidates but don't produce much more than big checks for direct-mail firms. Confronted by Politico, Erick Erickson,RedState's editor-in-chief, said, "It horrifies me that the list sometimes get[s] rented to some of these guys." And Agora has played the game of stirring up and cashing in on the conservative psyche longer and better than most of its competitors.
Agora was founded in 1978 by Bill Bonner, a Sorbonne-educated direct-mail guru who realized his natural gift while working for the National Taxpayers Union in the 1970s. The company estimates that its affiliates generate $500 million annually. Bonner and his wife own a 27-bedroom, 18th-century château outside Paris, a ranch in Argentina, properties inIreland and Nicaragua, and "Maryland's premier goat-cheese-producing rural estate." Agora has also renovated 10 mansions in Baltimore. "These buildings reflect the grace and elegance of the 19th century," Bonner told the Baltimore Sun. "They cause us to aim for a higher standard for our products and ourselves."
Bonner recognized well before Donald Trump that paranoid populism can be sold with the trappings of prestige. His audience, he once told an interviewer, is people who "want to be richer, happier, healthier, more productive. We try to go directly to those emotional points."
Agora founder Bill Bonner recognized well before Donald Trump that paranoid populism can be sold with the trappings of prestige.
One of Agora's many holdings is the Oxford Club, an international investing society whose name evokes cognac and rich mahogany. Indeed, the perks of club membership include occasional soirees and access to one of Agora's mansions and "outposts" in cities around the world. But the club's origins are less refined. In the 1980s, a businessman named Joel Nadel founded the Royal Society of Liechtenstein. When the Better Business Bureau complained that this was a misleading name for a company headquartered in Boca Raton, Florida, Nadel switched to the Oxford Club. In 1991, the Postal Service froze nearly $7 million of Nadel's assets on charges that he was running an illegal sweepstakes. Bonner pounced. He acquired the seemingly toxic asset andhired former Rep. Robert Bauman, a once-prominent Maryland Republican who had lost his seat after being accused of propositioning a 16-year-old male prostitute, to expand the brand. Somehow it worked.
The company's big break came in the mid-'90s, when conservative angst over President Bill Clinton reached a fever pitch. An Agora subsidiary sent out a 116-page book titled Who Murdered Vince Foster? that framed the demise of the presidential lawyer as "the biggest financial story of our lifetimes." Another pitch warned of a coming global plague "like the Black Death." Gary North, a Christian Reconstructionist historian who works closely with Paul, came aboard as one of Bonner's star writers. (Sample pitch: "Four Horsemen of the Modern Financial Apocalypse.") In 1994, the company's newsletter sales doubled.
(After this article was published in print, Bonner responded with a three-page letter, embedded below. He explained that the French chateau is a company training facility and the Maryland goat-cheese farm failed in the 1990s. The Agora founder did concede that the Biblical cancer cure email may have been "too bold" for his tastes, but argued that the boldness was what its readers were seeking. "[O]ur customers don’t pay us to be right," he wrote. "And we're certainly not paid to be timid. Instead, we're expected only to be diligent and honest, and to explore the unconventional, the often disreputable, and always edgy shades of the idea spectrum. And our customers have the last say. If they don't like what we offer, they don't buy.")
Agora and its subsidiaries have been accused of crossing the line between aggressive salesmanship and deception. In 2002, Frank Porter Stansberry, the editor of an Agora-owned newsletter called Pirate Investor, emailed 800,000 subscribers to suggest that he had "super insider" information on an imminent nuclear disarmament deal that could "double your investment dollar in a single day." For $1,000, he would fork over the specifics. More than 1,200 copies of the report sold, for a net profit of $626,500.
"Our customers have the last say. If they don't like what we offer, they don't buy," says Bonner.
The Securities and Exchange Commission accusedPirate Investor and Stansberry of fraud. The newsletters, the feds argued, "contain nothing more than baseless speculation and outright lies, fabricated to induce investors to pay Agora (or its subsidiaries) for subscriptions or purported inside information." A document cited during court proceedings said that following this type of financial advice was "no better than throwing a dart at the stock quotes page of the Wall Street Journal and buying whatever it hits." Although he had told his readers otherwise, Stansberry never acted on his own hot stock tip. Stansberry and his company were eventually ordered to pay $1.5 million in penalties and restitution. (Agora was cleared of wrongdoing.)
In 2011, Stansberry's company paid a $55,000 penalty to the Social Security Administration for promising customers they could "get Social Security no matter what your age." In 2012, the Food and Drug Administration warned Agora that a brand owned by another of its subsidiaries was illegally touting a health supplement as an anti-cancer drug. (The brand now describes the product as an immune system booster.) Last year, after an investigation by the nonprofit watchdog Truth in Advertising, Stansberry removed hundreds of customer testimonials from his company's website and promotional materials.
But who needs customer testimonials when politicos come so cheap? Access to Huckabee's email list reportedly cost NewMarket Health only about $1,000 for 300,000 addresses. When CNN asked the former Arkansas governor about the Bible-cure email, Huckabee argued that he wasn't responsible for sponsored emails sent out to his supporters. "My gosh, that's like saying, 'You run some ads on CNN, do you personally agree with all the ads that run on CNN?' I doubt you do," he toldanchor Jake Tapper. Pressed further on the email's "hucksterism," Huckabee responded, "I didn't actually run that part of my company." But that email was just one of his recent endorsements of questionable products aimed at his fans. A few months earlier, Huckabee had taped an ad for a product that promised to cure diabetes using an item from your kitchen cabinet. Spoiler: It's cinnamon.
.http://www.brokeragesdaytrading.com/article/1261114550/baltimore-cia-agora-inc-porter-stansberry-rey-rivera-sec-whistleblower-mckessy-guilty-of-murder-along-with-brent-baker-karen-martinez-/
Baltimore cia Agora Inc,Porter Stansberry,Rey Rivera:SEC Whistleblower McKessy Guilty Of Murder Along With Brent Baker ,Karen Martinez ?
From: Baltimore cia Agora Inc,Porter Stansberry,Rey Rivera:SEC Whistleblower McKessy G... Tag: agora
BALTIMORE AGORA INC,SEC WHISTLEBLOWER McKESSY GUILTY OF MURDER ALONG WITH BRENT BAKER,KAREN MARTINEZ ?Why did your attorneys Brent Baker and Karen Martinez remove all charges against James Dale Davidson and all charges for illegal pump and dump of Genemax and Endovasc that ripped me off ?
http://politicalandsciencerhymes.blogspot.com/2015/04/freddy-graydid-baltimore-police-murder_25.html
Freddy Gray:Did Baltimore Police Murder Rey Rivera For CIA,Agora Inc and Porter Stansberry,Bill Bonner,James Dale Davidson Why did SEC protect the CIA,City of London den of thieves pedophiles and murderers of Agora Inc?
Agora Inc with its many fraudulant financial websites is a CIA as well as City of London Rothschild operation that has defrauded billions of dollars of Americans' wealth into offshore accounts over the decades.The founder is James Dale Davidson who also founded the National Taxpayers Union that is
used to trick the middle class or former middle class into its lobbying for international billionaires,many
Jews or white people who lie about being 'Semites.Before his death the British Lord or Lard William
Reese Mogg was a part owner.He udsed to meet regularly with the head male of the Jewish Rothschild crime family.They seem to have no qualms about hiring pedophiles and ex Maryland Republican Congressman Bauman who had to resign freom the House of Representatives over a pediphile or under age male prostitute scandal.More recently in Nicaragua the American School pedophile Vahey who also had an Agora Inc connection to International Living of Nicaragua and owned property belonging to them.
When Rey Rivera''s body was found it was over a week after the fact it was alleged or assumed that he 'jumped' to his death from the 14th floor of the Belvedere Hotel.Conveniently the surveillance video happened not to work that day !
Why did your attorneys Brent Baker and Karen Martinez remove all charges against James Dale Davidson and all charges for illegal pump and dump of Genemax and Endovasc that reipped me off ? HAD THE CIA AND CITY OF LONDON CONNECTED CRIMINAL ACTIVITY AT AGORA INC BALTIMORE BEEN STOPPED AT LEAST BY 2002 REY RIVERA OF THE BELVEDERE HOTEL MURDER WOULD BE ALIVE TODAY!iN MANY WAYS MR.SEAN MCKESSY YOU ARE GUILTY OF HIS MURDER AS WELL AND THE DEFRAUDING OF UNTOLD MILLIONS OR BILLIONS OF DOLLARS!
http://briandeer.com/vaxgen/stansberry-sec.htm
http://politicalandsciencerhymes.blogspot.com/2015/04/freddy-graydid-baltimore-police-murder_25.html
Freddy Gray:Did Baltimore Police Murder Rey Rivera For CIA,Agora Inc and Porter Stansberry,Bill Bonner,James Dale Davidson Why did SEC protect the CIA,City of London den of thieves pedophiles and murderers of Agora Inc?
Agora Inc with its many fraudulant financial websites is a CIA as well as City of London Rothschild operation that has defrauded billions of dollars of Americans' wealth into offshore accounts over the decades.The founder is James Dale Davidson who also founded the National Taxpayers Union that is
used to trick the middle class or former middle class into its lobbying for international billionaires,many
Jews or white people who lie about being 'Semites.Before his death the British Lord or Lard William
Reese Mogg was a part owner.He udsed to meet regularly with the head male of the Jewish Rothschild crime family.They seem to have no qualms about hiring pedophiles and ex Maryland Republican Congressman Bauman who had to resign freom the House of Representatives over a pediphile or under age male prostitute scandal.More recently in Nicaragua the American School pedophile Vahey who also had an Agora Inc connection to International Living of Nicaragua and owned property belonging to them.
When Rey Rivera''s body was found it was over a week after the fact it was alleged or assumed that he 'jumped' to his death from the 14th floor of the Belvedere Hotel.Conveniently the surveillance video happened not to work that day !
:
Why did your attorneys Brent Baker and Karen Martinez remove all charges against James Dale Davidson and all charges for illegal pump and dump of Genemax and Endovasc that reipped me off ? HAD THE CIA AND CITY OF LONDON CONNECTED CRIMINAL ACTIVITY AT AGORA INC BALTIMORE BEEN STOPPED AT LEAST BY 2002 REY RIVERA OF THE BELVEDERE HOTEL MURDER WOULD BE ALIVE TODAY!iN MANY WAYS MR.SEAN MCKESSY YOU ARE GUILTY OF HIS MURDER AS WELL AND THE DEFRAUDING OF UNTOLD MILLIONS OR BILLIONS OF DOLLARS!
Why did your attorneys Brent Baker and Karen Martinez remove all charges against James Dale Davidson and all charges for illegal pump and dump of Genemax and Endovasc that reipped me off ? HAD THE CIA AND CITY OF LONDON CONNECTED CRIMINAL ACTIVITY AT AGORA INC BALTIMORE BEEN STOPPED AT LEAST BY 2002 REY RIVERA OF THE BELVEDERE HOTEL MURDER WOULD BE ALIVE TODAY!iN MANY WAYS MR.SEAN MCKESSY YOU ARE GUILTY OF HIS MURDER AS WELL AND THE DEFRAUDING OF UNTOLD MILLIONS OR BILLIONS OF DOLLARS!
Rey Rivera was used as a patsy for Agora Inc's notorious Porter Stansberry's Rebound Report and was protected by Utah SEC attorney Brent Baker who let him and James Dale Davidson off from charges of illegal pump and dump of biotech penny stock fraud money laundering operations even removing all mention of them and James Dale Davidson that was on original complaint against Jamezs Dale Davidson. Attorney Brent Baker's partner in this corrupt action was an SEC attorney named Karen Martinez.Note in tis quote from washington examiner she blames Rey Rivera's 14 foot fall from the Belvedere Hotel,Baltimore on -- investors in Stansberry's agora Inc's newletter but Rivera had NOTHING to do with that because he was not part of Agora at the time and the SEC knows they are responsible for allowing CIA-ROTHSCHILD CONNECTED AGORA INC TO PUT OUT MYRIAD FRAUDULENT WEBSITES FOR DECADES!
Not just one year before Rivera fell 14 floors to his death in 2006 and his body remained for over a week before Baltimore police found it,Lilia Rajiva of Agora Inc contacted me and then Port Stansberry followed up inviting me to visit him in Baltimore office where he would somehow 'prove'; to me that his CIA,City of London and Israel connected Agora Inc was legit!So I could easily have ended up in the situation Rivera's body was found myself!Ibelieve Martiez is partly correct aboutr 'investors' but the real dangerous ones aren't those she was talking or disinfo-ing about but elite investors who pay Agora to promote and pimp and dump their securities scamsd wghich may well include the Baltimore area Masonic Lodge he was checking out before his death.Had I gone to Baltimore on Stansberry's and Lila Rajiva's influence the corrupt Karen Martinez would have been blaming my death on me rather than pressuring Baltimore police and sheriff department to prosecute and close the CIA financial terrorists at Agora Inc that includes CIA's Mr.Rickard who is part of Agora and Bill Bonner;s the dailyreckoning.con and has been promoting himself on a number of Agora Inc websites recently!
Karen Martinez who strangely turned up in an Examiner article insinuating Rey Rivers was crazy even though she knew she herself had removed charges and protected both Stansberry and Davidson from prosecution for running illegal pump and dump of Endovasc and Genemax that were whose share price was blamed by them on 'naked short selling' a term made up by them and later even used by the SEC itself to 'explain' the
collpse of the entire stock market in 2008 !Below is the portion of charges removed vby the SEC and Brent Baker and Karen Martinez.It is known that Brent Baker later received a bribe from Davidson's Utah pal Patrick Byrne of the Novastar Financial and Overstock.com illergal pumps and dumps and stock manipulations !You can read the entire originasl quoted below at this link and verify for yourelf that these charges were completely removed in a rewritten complaint after the fact !
Man found dead at Belvedere worked at company that had SEC complaint STEPHEN JANIS • | JUNE 01, 2006
The company that employed Rey Rivera, whose body was found in an empty office at The Belvedere on May 24, sold investment advice that the Securities and Exchange Commission cited as "false" and that led to threats against the company?s owner before Rivera was hired.
A complaint filed by the SEC obtained by The Examiner charged that investment newsletters distributed by Mount Vernon-based Stansberry Associates "contain nothing more than baseless speculation and outright lies."
According to a Stansberry Associates official who did not want to be identified, Rivera was employed by the company for 18 months ? starting roughly a year after the complaint was filed. Rivera edited a financial newsletter called The Rebound Report that identified the best "turn-around companies," the company?s Web site said.
Rivera was not cited in the SEC complaint.
The complaint alleges that Frank Porter Stansberry, the company?s owner, sent an e-mail in 2002 that said investors could "Double Your Money" by investing in a company that was alleged to be on the verge of signing a contract to dismantle "nuclear warheads" for Russia. The newsletter offered the name of the company for$1,000, the complaint said. The complaint alleges that "the information was false."
Karen Martinez, one of the SEC attorneys who filed the complaint against Stansberry, said investors who paid for the tip are angry.
"Many investors testified in discovery that they lost substantial amounts of money based on the investment advice of the company," Martinez said.
"Investors said they were very unhappy," she added.
.......................................
Here is the proof SEC attorneys Brent Baker,Karen Martinez removed the
charges above and all mention of Endovasc and Genemax penny stock fraud
and that was the beginning of the 'naked short selling' lie created by James Dale Davidson
and in promoted in 2008 by Chris Cox and SEC TO EXPLAIN LIE ABOUT REASON FOR 2006
MARKET COLLAPSE!aLL OF THE BLLOW CHAGES AGAINST dAVIDSON AND gENEMAX AND eNDOVASC FRAUDS AND SSTOCK MONEY LAUNDERING SCHEMES ARE DELTED.SEC could prosecute CIA and ex SEC attorneys Brent Baker and Karen Martinez if they were sincere about McKessy's Whistelblower BS but they and he are lieing as well.
http://www.sec.gov/litigation/complaints/comp18090.htm
http://briandeer.com/vaxgen/stansberry-sec.htm
Porter Stansberry, Agora Inc and Pirate Investor "tips" hit by SEC fraud suit
A midnight announcemen t on February 24 2003 that the candidate HIV vaccine AidsVax showed no effect in a phase III clinical trial was long predicted by independent scientists. Inquiries by Brian Deer during his 1999 Sunday Times investigation of VaxGen , unearthed a worrying picture, and led to the prosecution of Dr William Heyward, who as HIV vaccine chief at the Centers for Disease Control and Prevention cheer-led for VaxGen's technology and arranged federal grants whilst secretly engaged to join the company
The company also forged another close relationship - with stock hypester Frank Porter Stansberry. Annotated extracts from Porter Stansberry material claiming to prove that AidsVax works and predicting the stock would soar are available at this site. Stansberry complains this Stansberry protest . Soon after, the US Securities and Exchange Commission filed the complaint reprduced below, also pointing to baseless hypes by Frank Porter Stansberry, who is linked with Vantage Point Investment Advisory, and other operations
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MARYLAND BALTIMORE DIVISION
COMPLAINT
Plaintiff Securities and Exchange Commission ("Commission"), for its Complaint against Agora, Inc. ("Agora"), Pirate Investor LLC ("Pirate") and Frank Porter Stansberry ("Stansberry") (collectivley referred to as "defendants"), hereby alleges as follows:
INTRODUCTION
1. Defendants engaged in an ongoing scheme to defraud public investors by disseminating false information in several Internet newsletters published by Agora or its wholly owned subsidiaries such as Pirate. Through various publications, defendants claimed to have inside information about certain public companies. Defendants suggested that its readers could cash in on the inside information and make quick profits. The defendants offered to sell the inside information to newsletter subscribers for a fee of $1,000.2. Numerous subscribers purchased the defendants "inside tips" and made investment decisions based on that information. The purported inside information was false and, as a result, the subscribers did not realize the profits the defendants promised. 3. The defendants, however, profited handsomely. On information and belief, Agora received in excess of $1 million from the sale of false information to its newsletter subscribers.
STATUTES AND RULES ALLEGED TO HAVE BEEN VIOLATED
4. Defendants Agora, Pirate, and Stansberry have engaged and, unless enjoined, will continue to engage, directly or indirectly, in transactions, acts, practices, and courses of business which constitute violations of Section 10(b) of the Exchange Act of 1934 ("Exchange Act") [15 U.S.C. §§ 78j(b)] and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5].5. Defendants' conduct occurred in connection with the purchase and sale of securities of public companies, including but not limited to, USEC, Inc. ("USEC").
JURISDICTION AND VENUE
6. The Court has jurisdiction over this action pursuant to Section 22(a) of the Securities Act of 1933 ("Securities Act") [15 U.S.C. § 77u(a)] and Section 21(d) of the Exchange Act, [15 U.S.C. § 78u(d)].7. The defendants, directly or indirectly, have made use of the mails, means or instruments of transportation or communication in interstate commerce, or means or instrumentalities of interstate commerce in connection with the transactions, acts, practices and courses of business described in this Complaint. 8. Venue over this action is proper pursuant to Section 22(a) of the Securities Act [15 U.S.C. § 77v(a)] and Section 27 of the Exchange Act [15 U.S.C. §§ 77v(a) and 78aa]. 9. Venue lies in the District of Maryland because certain of the transactions, acts, practices and courses of business constituting violations alleged herein occurred within the state of Maryland. In addition, Agora is a Maryland corporation with its principal place of business in Baltimore, Maryland. Pirate Investor LLC is a Maryland limited liability company with its principal place of business in Baltimore, Maryland. Defendant Frank Porter Stansberry is a Maryland resident.
AUTHORITY FOR PROMULGATED RULES CITED HEREIN
10. Plaintiff Commission brings this action pursuant to Sections 20(b) and 20(d) of the Securities Act [15 U.S.C. §§ 77t(b) and 77t(d)] and Sections 21(d) and 21(e) of the Exchange Act [15 U.S.C. §§ 78u(d)(3) and 78u(e)], to restrain and enjoin the defendants from engaging in the transactions, acts, practices and courses of business described herein which violate the federal securities laws, and transactions, acts, practices and courses of business of similar purport and object, to order defendants to disgorge all ill-gotten gains received during the period of violative conduct, and to impose civil money penalties pursuant to Section 20(d) of the Securities Act and Section 21(d)(3) of the Exchange Act against defendants.11. Pursuant to authority conferred upon the Commission by Sections 10(b) and 23(a) of the Exchange Act [15 U.S.C. §§ 78j(b) and 78w(a)], the Commission promulgated Rule 10b-5 [17 C.F.R. §§ 240.10b-5]. Rule 10b-5 was in effect at the time of the transactions and events alleged in the Complaint and remains in effect.
DEFENDANTS
12. Agora, Inc. is a Maryland corporation based in Baltimore. Agora publishes books, magazines, newsletters and operates at least 15 financial web sites in the United States and Europe. Agora's publications include The Cutting Edge, Penny Stock Advisory, The Red Zone, Taipan, Rogue Trader, The Flying V Lockup Trader, CSX Trader, Fleet Street Letter, Options Hotline, Outstanding Investments, Richebacher Letter, Daily Reckoning Investment Advisory, Carpathia Letter, Strategic Opportunities, Jim Davidson's Vantage Point Investing, and the Contrarian Speculator. Agora publications have well over 21,500 paid subscribers.13. Pirate Investor, LLC, is a Maryland Limited Liability Company that runs a financial advisory web site and newsletter, PirateInvestor.com. Pirate is wholly owned by Agora. Defendant Frank Porter Stansberry is the editor of PriateInvestor.com. 14. Frank Porter Stansberry, resides in Baltimore, Maryland. He is the editor of two of Agora's Internet financial newsletters: Porter Stansberry's Investment Advisory and PirateInvestor.com. Stansberry's compensation is based in part, on a percentage of the revenues realized by those on-line publications.
THE FRAUDULENT SCHEME
Marketing the False Inside Information
15. Agora's newsletters, including PirateInvestor.com, claim to be "a service featuring independent, original and thoughtful research into the process of wealth creation."16. Instead, the newsletters contain nothing more than baseless speculation and outright lies, fabricated to induce investors to pay Agora (or its subsidiaries) for subscriptions or purported inside information. 17. The subscribers paid Agora for the alleged insider information only to later discover that the inside information was false. 18. On or about May 14, 2002, at least 15 of Agora's Internet newsletters disseminated an e-mail, written by Stansberry promising quick profits based on inside information. The heading on the e-mail stated: "DOUBLE YOUR MONEY ON MAY 22ND ON THIS SUPER INSIDER TIP." A true and correct copy of the May 14, 2002, e-mail is attached hereto as Exhibit A. 19. The e-mail claimed analysts at PirateInvestor.com had come into possession of certain details about the pending approval of a major international agreement that "will create more than $2.5 billion in profits for one small company." The e-mail identified the issuer as a company that was involved in the nuclear energy field and would benefit from the arms reduction treaty between the U.S. and Russia. 20. Stansberry's May 14, 2002, e-mail maintained investors would "make a fortune" because PirateInvestor.com had a "senior executive inside the company" as a source for its inside information. PirateInvestor.com claimed this executive was "definitely in a position to know the intimate deals of this agreement" and when it would be approved. Therefore, the e-mail announced that PirateInvestor.com was in a position to "tell you EXACTLY WHEN the deal will be finalized and announced to the public." 21. The e-mail encouraged recipients to stake their entire investment portfolios on this unnamed company and suggested investors would be able to double their "investment dollar in a single day." Finally, the e-mail stated PirateInvestor.com "can even tell you exactly which day to buy (May 21st) and which day to sell (May 23rd). There is nothing else you have to do." 22. The e-mail did not give the name of the company but indicated it was listed on the NYSE and offered to sell a full report including the name of the company to subscribers for $1,000.
The USEC Report Contains False Information.
23. Once the reader purchased the tip for $1,000, the reader received a report that identified USEC as the company with the impending contract approval ("USEC report"). A true and correct copy of the USEC Report is attached hereto as Exhibit B.24. Agora's web site attributed the May 14, 2002 e-mail and the USEC report to Jay McDaniels. Jay McDaniels is a pseudonym for Stansberry. 25. The USEC report claimed USEC and Tenex, a Russian governmental agent corporation, had reached an agreement for Tenex to sell dismantled nuclear warheads to USEC at a reduced rate under a pricing agreement. 26. The USEC report indicated that both the U.S. and Russian governments were required to approve the pricing agreement before it became effective. The USEC report claims that, based on information from a company insider, the pricing "agreement will be approved just prior to the upcoming Bush-Putin Summit." Referring again to the pricing agreement, the USEC report states that "[a]ll it needs are the politicians to sign off on the deal" and "according to my source, that will happen-finally-on May 22nd." 27. Stansberry eventually identified Steven A. Wingfield as the insider who purportedly provided the inside information regarding the May 22nd signing date of the arms reduction treaty between U.S. and Russia. Steven A. Wingfield is USEC's Director of Investor Relations. 28. Stansberry claimed Wingfield told him the U.S. and Russian governments would approve the agreement between USEC and Tenex on May 22, 2002, the day before the start of the Bush-Putin Summit. Wingfield made no such statement to Stansberry. 29. Wingfield told Stansberry the same thing he told all analysts who called the investor relations department at USEC. Stansberry asked Wingfield about the pending approval of the USEC-Tenex contract by the U.S. and Russian governments. Wingfield responded to Stansberry, as he did to all analysts, by saying USEC "expected it would be approved in the near future." 30. Wingfield did not tell Stansberry, directly or indirectly, that the pricing agreement with Tenex would be approved by any governmental entity on May 22, 2002. No one at USEC knew when or if the pricing agreement would be approved. 31. Stansberry had no basis whatsoever for the claim in the USEC Report that the approval of the USEC-Tennex contract would occur on May 22, 2002. 32. The pricing agreement between USEC and Tennex was approved on June 19, 2002. On that date the Department of State and USEC separately announced approval of the pricing agreement by both the U.S. and Russian governments.
Market Activity in Response to Agora's False Information
33. From January 2, 2002, through May 13, 2002, trading volume in USEC common stock averaged approximately 189,000 shares a day at prices ranging from $5.78 to $7.37 a share.34. From May 14 through May 23 volume averaged 3,340,138 shares a day with closing prices ranging from $7.85 a share on May 14 to a high of $9.98 a share on May 20. There was also a significant increase in the volume of options trading in USEC stock during this period. 35. On May 22, USEC failed to make the announcement promised by the Agora e-mails and the USEC report and that day the price of USEC stock fell from $9.54 to $8.20 a share, a drop of nearly 15%.
Agora's On-going Efforts to Disseminate False Information to the Investing Public
36. Agora promoted other securities in its newsletters. Even after Agora became aware of the Commission's investigation, its newsletters have continued to publish e-mails promoting numerous securities accompanied by fantastic claims of quick profits or inside information.37. For example, Agora publications have touted stocks that it claims will double or triple in value over the next year. Other Agora publications claim to provide information that allows an investor to "turn $10,000 into $114,280 by April 18, 2003." 38. Agora continues to promise its subscribers, "Almost Unbelievable Profits - 4.5 Times Your Money in 48 Hours." 39. As recently as the first week in April 2003, Agora published articles making similar claims of exorbitant profits. In each instance, recipients of the e-mails are offered "free" copies of the headlined reports if they subscribe to one of the various Agora newsletters at a cost of from $69 to $1250 a year. The money-making investments featured in the reports are typically microcap issuers with cures for cancer or AIDS or a technological breakthrough. Some of the tips are characterized as being based on "secret" or "inside" information. 40. In some instances, the individual writing the reports Agora provides to its subscribers has an undisclosed relationship to the company being promoted. 41. For example, James Dale Davidson is the editor of Agora's Vantage Point Investment Advisory, a financial newsletter with a worldwide circulation. In December 2002 and January 2003, Agora distributed e-mails written by Davidson to its subscriber base. These e-mails promote several unnamed microcap issuers and offer to provide reports naming these issuers if the recipient of the e-mail paid $149 to subscribe to the Vantage Point newsletter. 42. Among the issuers promoted in this manner have been GeneMax Corp. and Endovasc Ltd., Inc. Davidson is an officer, director and, indirectly, a substantial shareholder of these two issuers. Neither the soliciting e-mail nor the subsequent company report discloses Davidson's relationship to the companies.
FIRST CLAIM FOR RELIEF
FRAUD IN CONNECTION WITH THE PURCHASE
OR SALE OF SECURITIES
Violations of Section 10(b) of the Exchange Act, 15 U.S.C. §78j(b),
43. The Commission repeats and realleges each and every allegation contained in paragraphs 1 through 42, as if fully set forth herein.And Rule 10b-5 thereunder, 17 C.F.R. § 10b-5 44. Defendants, by engaging in the conduct described above, directly or indirectly, in connection with the purchase or sale of securities, by the use of means or instrumentalities of interstate commerce, or of the mails, or of a facility of a national securities exchange, with scienter:
PRAYER FOR RELIEF
WHEREFORE, plaintiff Commission respectfully requests that this Court:
I.
Issue findings of fact and conclusions of law that Defendants committed the violations alleged herein.
II.
Issue an Order Issue in a form consistent with Rule 65(d) of the Federal Rules of Civil Procedure, permanently enjoining defendants Agora, Pirate and Stansberry, and their officers, agents, servants, employees, attorneys, and accountants, and those persons in active concert or participation with any of them, who receive actual notice of the order by personal service or otherwise, and each of them, from engaging in the transactions, acts, practices and courses of business described herein, and from engaging in conduct of similar purport and object in violation of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
III.
Enter an order that defendants Agora, Stansberry and Pirate, provide an accounting and disgorge their ill-gotten gains from the illegal conduct alleged in this Complaint and to pay prejudgment interest thereon.
IV.
Enter an Order that Defendants Agora, Stansberry and Pirate pay civil penalties pursuant to Section 20(d) of the Securities Act, 15 U.S.C. § 77t(d), and Section 21(d) of the Exchange Act, 15 U.S.C. § 78u(d), for the violations alleged herein.
V.
Retain jurisdiction of this action in accordance with the principles of equity and the Federal Rules of Civil Procedure in order to implement and carry out the terms of all orders and decrees that may be entered, or to entertain any suitable application or motion for additional relief within the jurisdiction of this Court.
http: //www.sec.gov/litigation/complaints/comp18090.htm
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