--Regulators close in on Naples brokerage firm A.S.... -
[Cached Version]
Published on: 1/28/2001
Last Visited: 7/14/2002
Robert Anderson, a 55-year-old economist from McLean, Va., trusted his broker at A.S. Goldmen.Anderson considered him smart and charming.
But he believes Adam Townsend told him lies about the potential of a stock called Veritas Music & Entertainment Inc., a small Nashville-based music production company that takes its name from the Latin word for truth.
Over the course of 19 months, Anderson lost more than $86,000 on Veritas, a house stock A.S. Goldmen took to the public market in July 1995.
After repeated complaints about unauthorized trades showing up in his account, Anderson requested his stock certificates to transfer his account to another brokerage firm in November 1996.His requests were ignored.
A month later, Anderson reached A.S. Goldmen supervisor, John Abbey (whose real name is John Diasabeyagunawardena).
...
Anderson says Abbey told him, in effect, we've got you're money and you'll never get it back.
...
Anderson threatened to hire a lawyer or call the SEC."(Abbey) said 'You don't know how rough we can be,'" Anderson said.
...
In August 1995 while on vacation training for a marathon in Colorado, Anderson got a call from his frantic wife.A clerk at A.S. Goldmen had called demanding a $20,000 wire transfer to cover a purchase of Veritas stock that Anderson knew nothing about.
Anderson said Townsend told him he had to unload the stock in the account of one of his clients because he couldn't put it on the market.In September 1995, Anderson said another unauthorized trade of 4,000 shares of Veritas showed up in his account.
Townsend promised that a big order from a mutual fund would soon drive up the price of the stock, Anderson said.
...
Another time, Anderson said Townsend told him Veritas had already sold 500,000 albums.
...
Later, when Anderson called the company, officials there told him they'd sold only 6,000 albums.
...
Anderson said pursuing A.S. Goldmen would only make him bitter.
...
Maybe I was foolish," Anderson said."I guess I've learned my lesson."