Stock Promoter Is Sentenced
To 27-Month Prison Term

NEW YORK -- An Internet stock promoter who made $1 million by flooding investors with so-called spam, or unsolicited commercial e-mail, that looked like stock picks from America Online was sentenced to 27 months in prison.

Glenn Conley, of Gaston, Ore., was charged in February 2000 with driving up the value of 60 penny stocks that he owned by touting their investment prospects to AOL subscribers in messages titled "AOL Investment Snapshot."

Mr. Conley and a partner, James Sheret Jr., succeeded in creating a demand for the stocks, and sold them when prices rose, often reaping returns of 350% or higher in just a few days, according to the Manhattan U.S. Attorney's Office.

Mr. Conley, 34 years old, pleaded guilty in July to conspiracy and securities fraud related to the pump-and-dump scheme, which lasted less than three months. He was sentenced Friday by U.S. District Judge Deborah Batts in Manhattan.

Mr. Conley already settled related Securities and Exchange Commission charges by paying $459,000 in restitution.

His partner, Mr. Sheret, pleaded guilty in September 2000 to conspiracy and securities fraud, and he currently is awaiting sentencing.

In pleading guilty to the spam scheme, Mr. Conley said he made a 358% return on a two-day investment in Sykes Datatronics Inc. and a 228% return on Jumpin' Jax Corp.

Most of the companies touted by the two men had little or no revenue, paid no dividends in recent years and were remiss in their regulatory filings.

America Online, a unit of AOL Time Warner Inc., cooperated with authorities. The company provides personal-finance information, but doesn't recommend individual stocks.

Updated January 27, 2003 12:19 p.m. EST