John Westergaard sued by SEC for not disclosing payment received from stocks he touted

Here is one of quite a few lawsuits against John Westergaard by the SEC.

U.S. Securities and Exchange Commission
Washington, D.C.

LITIGATION Release No. 16842 / December 27, 2000

Securities and Exchange Commission v. John Westergaard, et al., U.S. District Court for the Southern District of New York (Civil Action No. 00 Civ.9776)

SEC NAMES WESTERGAARD, TWO ENTITIES IN INTERNET TOUTING CASE

The Commission today sued John Westergaard, Westergaard.com, Inc., and Westergaard Broadcasting Network.com, Inc. (collectively WCI or defendants) for broadly disseminating on the Internet and through press releases purportedly "independent" analysis of publicly-traded securities when in fact defendants had been paid to publish that analysis. The complaint alleges that the defendants charged small-cap publicly traded companies up to $48,000 to publish positive reports about them that were disseminated through three media: press releases, an Internet radio show, and an Internet website. The complaint also alleges that Westergaard misled prospective investors by falsely claiming the analysis was "independent," and that all the defendants failed to comply with mandatory requirements to disclose compensation received in connection with the publication of securities analysis, in violation of Section 17(b) of the Securities Act of 1933. As alleged in the complaint:

• WCI widely disseminated press releases to draw attention to its positive analysis of companies. WCI received compensation from four issuers that were the subject of five such press releases. Each of these favorable press releases, failed to disclose that WCI was paid to publicize the issuers' securities. Two of the press releases included the false claim that the research was "independent."
• Westergaard interviewed executives of five client companies on a weekly radio show he hosted known as "Johnny Dot.com," that was broadcast on an Internet radio station featuring investment-oriented programming. The interviews presented favorable views of the companies and their prospects. Westergaard did not disclose on the radio show broadcasts the compensation the companies had paid.
• The full text of the analysis was disseminated through an Internet site called Westergaard Broadcasting Network, or WBN, that Westergaard founded, and served as publisher and editor-in-chief. During a prior Commission inquiry into Westergaard's disclosure of the amount of compensation received from issuers covered on the Internet site, Westergaaard added the required compensation disclosure to his web site. On or about April 14, 2000, after he was notified that that inquiry was closed, Westergaard deleted the amount of compensation from his disclosure. Thereafter, he continued to publish analyses of six companies for which WCI received compensation, and a seventh that had agreed to pay in the future.

Simultaneously with the filing of the Complaint, Westergaard.com, Inc. and Westergaard Broadcasting Network, Inc. settled the charges against them by consenting, without admitting or denying the Commission's allegations, to the entry of an order permanently enjoining them from violating Section 17(b) of the Securities Act.

As to John Westergaard, the Complaint seeks a permanent injunction against violations of Section 17(b) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and civil penalties.

http://www.sec.gov/litigation/litreleases/lr16842.htm

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John Westergaard tells people to mortgage their house to buy shares in worthless company which went bankrupt

John Westergaard, wbn.com, stock promoter, securities fraud, con man, dead, 

This is just the first of many posts. I will be reposting everything I posted before John Westergaard thankfully left this earth in 2003. I took my wbn page down after he died and all his tout jobs went bankrupt or didn't perform. It's been 11 years since he died. I think that's enough time. 

This is what stock promoters say about scam companies. Bikers Dream BIKR had no real business except printing and selling shares. I made a full report which I will post next. Shorters saw my report and shorted BIKR from $7 to pennies in just a few days. The stock was actually worth $0. I did not short the stock. I posted my reports so  people would not be ripped off by evil John Westergaard. 

After he posted this shares dumped. Every time share price dumped John Westergaard would state "Take advantage of this fantastic buying opportunity!!! take advantage of this great low share price, back up the truck, load 'em on up, I'm nibbling, nibbling, Time to nibble nibble, yum yum yum." John Westergaard posted on Yahoo, Raging Bull, Silicon Investor. I think he was dead before ihub started. 

John Westergaard was promoting BIKR. This is cut/paste of his actual post, what a piece of shit he was.

Yes, Do Mortgage the House But Not Yet!!
by: westergaard 02/24/98 04:39 am EST
Msg: 179 of 97243

I have only known of one instance where someone went out and mortgaged the house to buy a stock. He was employed by an advertising agency handling the Xerox account in 1960 I believe it was, even before Xerox was Xerox. The man became very very rich. All of us following this thread have the potential opportunity for becoming rich on this stock which I define as making a million dollars (not rich maybe, but better than a kick in the pants). I would assume that everyone here can afford to buy 10,000 shares which is less than $20,000. I would then borrow on the house to buy another 5,000 shares when the SEC approval comes through. Let's say the stock is then 2 1/2. Then I'd borrow again when some tangible evidence comes through that the system is functioning to plan and that 4-5 gorillas have signed up (FIDO, Vanguard, etc.). Let's say the stock is then at 4. Now you've got circa $50,000 invested in 20,000 shares. When the stock hits 10 you buy another 5,000 shares on margin, borrowing $50,000 against an equity of $200,000. When the stock hits 40 you've got $1mm less your cost of $100,000. It's so easy, isn't it? I've seen this done on a few occasions. I had a client who did this with Commodore, investing $400,000 and taking out over $12mm. The reason he was able to do that was because he stayed focused!!! That's the key: focus, focus, focus. Don't get caught up in this trading bullshit. John W.

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