FOR IMMEDIATE RELEASE                                     2000-16

 SEC Charges Two People With Internet Stock Manipulation Scheme
                                
  Spams Implied that America Online Had Issued or Endorsed the
                         Recommendations

     Denver, CO, February 24, 2000 -- The Securities and Exchange
Commission today filed civil fraud charges in U.S. District Court
against two people for manipulating the stock price of 57 thinly-
traded companies through the issuance of numerous unsolicited e-
mail messages, known as "spams."  The Commission alleges that
James Sheret, Jr., of Bayside, New York, and Glenn E. Conley, of
Portland, Oregon, prepared the spams, under the banner "AOL
Investment Snapshot," thus making it appear that the spams
emanated from or were endorsed by America Online, Inc.  The
complaint further alleges that Sheret and Conley sold their
personal holdings in the stocks immediately after sending the
spams, realizing substantial profits.  The defendants are
contesting the charges.

     The U.S. Attorney for the Southern District of New York
today also filed a criminal complaint alleging that these two
individuals conspired to and committed securities fraud.

     SEC Director of Enforcement Richard H. Walker said, "We
welcome the involvement of the criminal authorities in this case.
The crack-down on Internet fraud continues.  With the use of
spams on the rise, this case sends a strong message to investors
that unsolicited recommendations should be viewed with a wary
eye."

     SEC Associate Regional Director Donald M. Hoerl said, "Some
people may believe that the Internet provides anonymity, but this
case demonstrates that those who commit fraud in cyberspace leave
footprints behind."

     The complaint also alleges that in some instances the spams
gave the impression that the actual recipient had mistakenly
received a message meant for a friend of the sender.  Further,
the spams stated that the stock prices of the touted companies
had recently increased without disclosing that, in a number of
instances, the price increases were due largely to Sheret's and
Conley's stock purchases before the spams were sent.

     These false and misleading statements were allegedly
intended to induce buying in the stocks and raise their prices.
Indeed, the scheme had this effect, allowing Sheret and Conley to
sell their holdings into an artificially inflated market.  The
complaint alleges that Sheret and Conley have made profits of at
least $309,705 and $21,990 through individual trading,
respectively, and another $7,627 through trading in a joint
account.
     
     The complaint, filed in the U.S. District Court for the
Southern District of New York, seeks permanent injunctions,
disgorgement, and civil penalties.  The action also seeks an
order that temporarily restrains Sheret and Conley from violating
the federal securities laws and that freezes their assets.

     The Commission thanks the U.S. Attorney for the Southern
District of New York for working closely with it on this matter.
The Commission also appreciates the assistance of America Online,
Inc. in this matter.

Contacts:

Donald M. Hoerl
Associate Regional Director
Central Regional Office
303.844.1060

Katherine S. Addleman
Assistant Regional Director
Central Regional Office
303.844.1070

Michael R. MacPhail
Deputy Assistant Regional Director
Central Regional Office
303.844.1113

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