U.S. Securities and Exchange Commission
			Symbol			*SEC
			Shares Issued			n/a
			Close			n/a
			Recent Sedar Documents

SEC sues phony news release author Ballas

2009-10-23 14:16 ET - Street Wire

Also Street Wire (U-*SEC) U.S. Securities and Exchange Commission
Also Street Wire (C-IMX) Imax Corp

by Mike Caswell

The U.S. Securities and Exchange Commission has filed market manipulation charges against New York broker Lambros Ballas, 34, for issuing false news releases that boosted the prices of three companies, including Mississauga-based Imax Corp. The SEC said Mr. Ballas issued news claiming that Imax had received a $1.5-billion takeover from Walt Disney. (All figures are in U.S. dollars.)

The false news release about Imax came out on Sept. 30, 2009, and boosted the stock from $9.43 to $9.85. Imax then issued a news release stating that it was not in any negotiations with Walt Disney, and the stock fell to $9.26. Until today's charges, it was not clear if the SEC was investigating the false news release.

SEC's complaint

The SEC filed a 10-page complaint against Mr. Ballas in the Northern District of California on Oct. 22, 2009, just three weeks after the false news releases. It identified him as a resident of Merrick, N.Y., who works for Global Arena Capital Corp. According to the complaint, he issued the news releases over a four-day period in late September and early October, 2009. He then made postings on stock forums with links to the news releases.

The first company targeted was Discovery Laboratories Inc., a Pennsylvania company that develops treatments for lung diseases. One of its products, called Surfaxin, was awaiting approval from the U.S. Food and Drug Administration in September. The SEC claimed that Mr. Ballas submitted a false news release before the open on Sept. 29, 2009, stating that the company had received that approval, and that MSNBC commentator Jim Cramer expected the approval would boost the stock. Mr. Ballas sent out a further news release, purportedly issued by the FDA, stating that the agency had approved Surfaxin, the SEC says.

The stock opened at $1.63 on Sept. 30, up from $1.11 the day before. The SEC claimed that several of Mr. Ballas's clients then sold the stock at prices between $1.51 and $1.61. They had bought their shares the day before at $1.12 and $1.13. The stock fell to $1.36 after the company issued a news release that day around 10 a.m., stating that it believed it had a path for FDA approval, but it did not claim that the FDA had approved Surfaxin.

The second manipulation cited by the SEC was Imax. At 5:43 a.m. on Sept. 30, 2009, Mr. Ballas distributed a news release titled "Disney catches 3D Theater giant Imax (IMAX) in a $1.5 Billion Dollar Deal in another recent buyout," the SEC claimed. The release purported to have written by an Associated Press reporter.

According to the complaint, Mr. Ballas hyped the deal with several false postings he made under aliases on Yahoo! One read, "disney bought out imax for $18 per share WHO HOOOOO." The SEC said Mr. Ballas distributed two more news releases about the deal before Imax dispelled the false news.

The complaint identified the third company in the scheme as Local.com Corp., a California search engine operator. On Oct. 1, 2009, at 3:49 p.m., Mr. Ballas bought 5,000 shares of Local.com at $5.33. Twenty-five minutes later, he submitted a news release titled, "Local.com Corporation (LOCM) just announced that they have been bought out by the Software Giant Microsoft (MSFT)," the SEC claimed.

The release, which purported to be from an established public relations firm, stated that Microsoft acquired Local.com at $12.50 per share. In aftermarket trading, the stock went as high as $9.65, up from an Oct. 1, close of $5.39.

That evening, at 9:30 p.m., Local.com issued a news release stating that it was not being acquired by Microsoft and it was not in any discussions with Microsoft. The SEC said Mr. Ballas, the next day, submitted another false news release. This one stated that Google was actually making the offer, and not Microsoft.

According to the complaint, Mr. Ballas distributed the phony news releases through four different services: PR-inside, 12 Press Release, Wired PR News and EIN Presswire. The only service to question one of his news releases was Wired PR News, which requested additional information about Google's purported takeover of Local.com, the SEC says. A representative told Mr. Ballas that he was concerned the news release could be a hoax. Mr. Ballas later paid $49.95 to have EIN Presswire carry the news release, the complaint states.

The SEC is seeking appropriate civil penalties, disgorgement and an order preventing future violations of the U.S. Securities Act. Mr. Ballas has not responded to the case.

Reader Comments - Comments are open and unmoderated, although libelous remarks, including names, may be deleted. Opinions expressed do not necessarily reflect the views of Stockwatch.
For information regarding Canadian libel law, please view the University of Ottawa's FAQ regarding Defamation and SLAPPs.

This dope takes the cake for 100% complete lack of grey material. Unbelievable.

This idiot should have just thrown his own arse in jail and saved investigators a few months.

Absolutely remarkable that there are apes THIS dumb.

Posted by Duh, me smart, A Huck A Huck @ 2009-10-23 15:20

Yup, buddy is a slam dunk to win the dumb ass of the month award

Posted by and I though I was dum @ 2009-10-23 16:15

The teachings of scriptures in the tora advocate the appropriation of property from non believers of that faith as a right. Lambros Ballas was simply obeying his religious teachings since he was a little boy, and following examples set by and most likely hoping for praise from his peers. Gaining recognition for success in such activities is particularly competitive and acceptable practice in New York.

Oy Vey!

Posted by Mini Madoff @ 2009-10-24 20:01

Lambros is Greek, not Jewish, and it's the Talmud which advocates that, not the Torah. The Reform and Conservative branches of American Judaism consider such activities to be trehf, however.

Sure wish you 10th grade educated goniffs would learn how to spell and get your stories straight.

Do you think Ballas was surprised he got popped that quickly?

Posted by Big Swingin' Dicke @ 2009-10-25 09:58

Haven't you ever heard of a Greek Jew?

The Talmud has numerous outrageous quotes about sexual treatment of children and the theft of property from gentiles. The Talmud teaches the "chosen" to break some of the most serious laws just about every society lives by. Its teachings should be banned outright, along with other equally perverted and illegal religious teachings. Its no secret what has happened to the financial system. Certain devious people have gone insane with greed and manipulated government policy to remove financial controls which have been in place since 1929. How do you think the amount of derivatives floating around represents more money than exists on Earth? These people are clearly sick in the head and have no place on Wall Street.

Posted by Diseased minds @ 2009-10-25 11:57

Maybe Ballas thought he was above the law....

Posted by New York broker @ 2009-10-25 12:28

Yeah, above the law is what he thought he was and he just found out that's just not so.

You Talmudic scholars who can't spell crack me up.

Posted by Big Swingin' Dicke @ 2009-10-25 15:31

Interesting thread.

It MAY or MAY NOT be the case that Mr. Ballas thought he had God on his side. The suggestion he may have thought this raises an issue that is germane to our present financial system.

If you were heavily loaded up in stocks on 9/10 by the next day on 9/11 you would have no problem believing a God could have a big impact on our financial system, just may not have been your God.

How about if you were a Madoff investor?

Has anything at all changed since that day of 911. Do we still have Gods battling it out??

So really, its come down to the God vs God Smack-Down, an all out barn-burner of a match. In the one corner we have Jesus who at 165 lbs of air is able to perform miracles, walk on water and float through the ether.

In the other corner we have Allah who has a great big honkn sword with which to carry out a slashing campaign of Jihad against all infidels (unless of course they pay a small monthly Infidel Tax fee which is really not too much to ask for because Allah controls everything on Earth}.

And in the third corner we have Yahweh, the one true God (that's what his driver license says) who created a universe of pain, death and suffering with which to burn out our impurities by war and bloodshed while goyim feed his pain machine through their worthless carcasses.

Now who do you place your bet on? The one who owns God's chosen people? The Redeemer? The sword of Jihad?

Bottom line, it's the "God vs God Smack-Down" and the winner must have his prize, non-stop worship and mindless adoration without deviation but with total unquestioning servitude.

Sounds just like the way I want to spend all of eternity!

Geeesh....he could have achieved all of that and more without all the bloodshed, torture and pain. He should have instead just used a big willow switch like Granny Clampett, it worked well on Jethro and she didn't have to resort to her squirrel gun.

Posted by TheStreet @ 2009-10-25 16:14

Big Swingin' Dicke, don't get your skullcap twisted on the wrong way, there is no need for most people to have in depth studies are the demented teachings of a particularly insidious religion. The fact that its influencing financial policy is enough to take action. The tide is definitely turning against these people in New York/Wall Street. Bernie Madoff's financial crime spree says it all.

Posted by Who cares about details, we know the problem @ 2009-10-25 16:35

NEWS: Police - Madoff associate Jeffry Picower dies at 67

Found dead at the bottom of his swimming pool!

Somehow I don't think this is the last of this kind of news.

Posted by KARAMA with no sympathy @ 2009-10-25 17:30

oops....forgot we mustn't forget the fourth corner.

And in the fourth corner we have the 98 lb. Beelzebub a.k.a Mephistopheles a.ka. The God of Light a.ka. The Thousand Points of Light a.k.a. The Fallen Angel. This God is the most feared of all Gods because of his ability to turn dollars into real paper.

Whovever the winner is of the GOD vs GOD SMACK-DOWN Beelzebub a.k.a Mephistopheles a.ka. The God of Light a.ka. The Thousand Points of Light a.k.a. The Fallen Angel has kindly and graciously invited the winner to enter a float into his Toronto World Pride Parade 2014.

All Gods will be in attendence that day with very special apprearnces made by Buddha, and the Holy Mary.

Posted by TheStreet @ 2009-10-25 17:47

Lambros Ballas is asking his god why he was abandoned after following his teachings.

Themis, ancient Greek goddess, is back to punish Ballas for his sins, and others like him, and their wreched perverted god.

Posted by Empty kippah @ 2009-10-25 18:30

I believe in the Church of the Flying Spaghetti Monster. It tells me I can wear a funny little hat, take newspapers from broken vending machines, sneak out on bar tabs, shoplift twice a day, and siphon gas from non believers' cars. My religion protects me!

The Gospel of the Flying Spaghetti Monster:

The central belief is that an invisible and undetectable Flying Spaghetti Monster created the universe "after drinking heavily." The Monster's intoxication was supposedly the cause for a flawed Earth. All "evidence" for evolution was planted by the Flying Spaghetti Monster in an effort to test Pastafarians' faith. When scientific measurements – such as radiocarbon dating – are taken, the Flying Spaghetti Monster "is there changing the results with His Noodly Appendage." The Pastafarian "belief of heaven" contains a beer volcano and a stripper factory. Hell is similar, except that the beer is stale, and the strippers have STDs. Pastafarians celebrate every Friday as a holy day.

The official conclusion to prayers is "R'amen." It is a portmanteau of the Semitic term "Amen" and a type of noodle.

Around the time of Christmas, Hanukkah, and Kwanzaa, Pastafarians celebrate a vaguely-defined holiday named "Holiday," which does not take place on "a specific date so much as it is the Holiday season, itself." Because Pastafarians "reject dogma and formalism," there are no specific requirements for the holiday.

Posted by Pastafarianism @ 2009-10-25 19:44

MORE NEWS: Freddie Mac (NYSE: FRE) David Kellerman, the acting Chief Financial Officer and Senior VP at Freddie Mac, was found dead early this morning from an apparent suicide at his home in Virginia.

Themis shows no mercy!

Posted by BO's hit squad @ 2009-10-25 23:01

"Blessed are You, LORD, our God, King of the universe, Who has sanctified us with His commandments and has commanded us with greed"

Posted by Rabbi Shlomo Goldwasher @ 2009-10-26 14:55

Lambros is Greek Orthodox.

Posted by Long Islander @ 2009-11-03 10:15

Lambros is a jew, no question about it.

Posted by Oy Vey! @ 2009-11-03 22:32

Add a new comment

Here is a word in <i>italics</i>.
Click <a href="http://www.stockwatch.com">HERE</a> to go to Stockwatch.