dbg@u1100a.UUCP (D B Grooms) (11/18/85)
Some time ago in this newsgroup, a number of articles were posted
criticizing FJS as a very poor investment service at best, and
probably a ripoff or fraud. A recent Associated Press newspaper article
would seem to confirm that view. The following are excerpts from the
article:
Associated Press, 11/1/85
"The Securities and Exchange Commission yesterday charged First Jersey
Securities Inc. with violations of the anti-fraud law for allegedly
charging excessive prices for securities".
...
"Generally, the SEC charges that First Jersey Securities Inc., and its
founder and chief executive officer, Robert E. Brennan, engaged in a
series of fraudulent business practices. Those dealings allegedly involve
'misstatements and omissions of material facts, contradictory buy-sell
recommendations in markups and markdowns with respect to the
securities ...'".
...
"The complaint further charges that First Jersey Securities and Brennan told
some of their branch offices to recommend that customers sell securities in
which First Jersey Securities made a market. But at the same time, they told
other branch offices to recommmend that customers purchase these securities
for the alleged purpose of creating profits for First Jersey Securities.
The complaint says that First Jersey Securities ... made gross profits of
at least $9.6 million by charging markups and-or markdowns of up to 124
percent on such transactions".
Associated Press, 11/1/85
David Grooms
{ihnp4,bellcore,pyuxww}!u1100a!dbgsdo@u1100a.UUCP (Scott Orshan) (11/20/85)
I also read the article about FJS's illegal activities a few weeks
ago. Shortly after that, I got one of their usual sales calls which
went something like this:
FJS: I'm calling from First Jersey Securities. Are you familiar
with us?
ME: Oh yes, you're the ones who just got indicted for securities fraud.
FJS: <Some prepared explanation about how this was a personal vendetta
by the SEC against their president. Then, he had the nerve to
ask if I was interested in their services.>
ME: No, I'm not interested right now.
FJS: Is that because of what you've heard about us?
ME: Partly, but I'm just not interested.
The only good thing I have to say about them is if you tell them
you're not interested at the beginning of the conversation, they
end the conversation. They don't try to pressure you.
--
Scott Orshan
Bell Communications Research
201-981-3064
{ihnp4,bellcore,pyuxww}!u1100a!sdo