STATE, FEDS READY CASES VS. STRONG AND ALLIANCE (mutuals fraud)

NY POST ^ | November 7, 2003 | JENNY ANDERSON

[Liz]

Federal and state regulators may file charges against shady trading mutual fund firms Alliance Capital Management and Strong Capital Management as early as next week, say people familiar with the situation.

New York Attorney General Eliot Spitzer is contemplating criminal charges against Richard Strong for quickly buying and selling shares of his own company's funds, say people who have been briefed on the AG's plans. The SEC also is considering charges of self-dealing against Strong.

[OldPossum]

Situation of pure greed. I am so unfortunate as to be a stockholder in two of these funds.

[Eric in the Ozarks]

Dick Strong violated his feduciary duty to me and lots of others but I'm not ready to take the fund down for it.

[Liz]

Saying heard on Wall Street during the bubble years, "Where are the investors' yachts?"

[Liz]

ping

[Eric in the Ozarks]

I might take exception to the word "shady," in the first graph, but I am disappointed with Strong. I thought they were rowing the boat for all the investors.

[Grampa Dave]

"The SEC and Spitzer have been investigating market timing activities at Strong Capital Management, in particular Strong's own trading for his account as well as the accounts of his friends and family members.

"Since he had access to material, non-public information, and allegedly traded on that information, he could be charged with self-dealing or insider trading, say people familiar with the investigation."

If he is guilty, he should be tried, convicted, and sentenced to live the rest of his life with Martha as his cell mate.

[Liz]

OMG, control freak Martha as his cell-mate is a fate worse than death. Better he should opt for capital punishment.

[Grampa Dave]

Living the rest of his days with Martha would be considered capital punishment in some areas.

[Liz]

There's more to come -- like insiders getting loans at "preferred rates" which is the thing that brought Tyco's Kislowski down.

[SierraWasp]

I watched Spitzer on PBS last night. His hero is the recently deceased Dem Senator Monihan, that wrote the book "Defining Decency Down!" He stated he thought this was a case of "Ethics & Morality Creep" and I shouted at my TV... "THANKS TO YOUR OTHER HERO, CLINTON CREEP!!!"

Then I started muttering about how the book title's three words all start with the same alphabetical character as "Demonicrat" and how the first word should have been "Defiling!"

The Clinton Mal-Administration's lack of character encouraged this criminality right along with emboldening the terrorists!!!

[Grampa Dave]

Remember the Goron proudly stating that there was no controlling Legal Authority.

Well since Bubba left office and took his Wookie Dyke, Jake Reno, with him, we have seen a controlling legal Authority return.

These criminals at these mutual fund houses are about to find out about a return of controlling legal Authority.

[Liz]

Heheh. He'd have plenty to do, she'd make darn sure of that.
Hey, it could be fun making lace doilies out of pine cones.

[Grampa Dave]

I'm sure with some of these houses, we see insider trading, special interest rates and incredible expense deals.

There are probably too many mutual funds and companies anyway. This might be a good way to prune out some of the dead wood and poison weeds.

[Grampa Dave]

My trophy wife saw a teaser showing Martha and Barbbabbarrbara Walters in their upcoming interview.

My wife said that Martha looked like she had been beaten by an ugly stick and then dragged around NY City behind a tow truck.

[OldPossum]

Re your post #3, I'm not going anywhere. Stick with the fund and hope for the best.

[Eric in the Ozarks]

My pkg with Strong has been up, up, up lately.

[OldPossum]

Well, mine has too, per the third quarter statement. I haven't looked at it lately. My only holding is the Strong Blue Chip Fund.

I was just afraid that the bad publicity might drive investors away and lower the fund values.

[Eric in the Ozarks]

I'm in Strong Advisor IRA. Its a blend of common stocks, bonds, some class A's, etc.