The Reading Room
This page is organized into the following sections.
Archived Pages of Website
General
Client Lawsuits
The Elgindy Files
NASD Issues
The Florida Lawsuit
(Murphy v. Steinberg & Lyman et al)
The Pennsylvania Lawsuit
(Hemispherx v. Asensio)
Second Pennsylvania Lawsuit
(Dilworth Paxson v. Asensio)
The South Carolina Lawsuit
(Miller & Pearce v. Asensio)
West Highland
and Blue Ridge SEC Filings
(1998 and earlier)
Archived Pages of Website
His NASD Record.
NASD slapped Asensio's wrist five times before filing the charges that led to
him being barred from the securities industry. Here is the story, along with examples of how NASD officials
simply rolled over when Asensio repeated the same offenses and mocked their
discipline of him.
Letter, California Justice
Department. Letter from site to California DOJ regarding effort by
Asensio to intervene in matter regarding MultiMedia Games. We urged that
DOJ examine whether client hedge funds were hiding behind his request.
Legitimate License? A chronology of
events in Asensio's career relative to his registration and licensure as a
stockbroker and broker-dealer. Shows excerpts of his broker-dealer
application where he denies any investment-related court rulings or liens
against him. Current through early 2003 when first posted as page of site.
Letter to SEC. The site urges the SEC
to think outside the box about hedge fund abuses.
Manuel Asensio, P.I. Asensio plays Eliot
Ness at PolyMedica in Florida in an attempt to interview employees.
NASD Dissed Again. More evidence that
Asensio is incorrigible, and NASD not uninterested in his repeat offending.
The ink was barely dry on his November, 2000 settlement agreement before Asensio
and his staff were violating the agreement again. Amazingly, NASD brought
no charges even though it filed a case against him in February 2004.
General
Broker-Dealer Application I.
Broker-Dealer Application II. [1284 KB] Asensio's 2003 Form BD. Click for second half of the form [1102 KB].
Equities Magazine Expose. [840 KB] Robert Flaherty reviews Asensio's recent book and finds a talent for revisionist history and hypocrisy.
Missing Picks I. Business Week article citing Action Performance, Shared Medical Systems, and U.S. Office Products as Asensio picks--none of which are mentioned on his website.
Missing Picks II. Business Week
article citing an additional Asensio pick missing from his website:
Computer Learning
Centers.
Naked Shorting Lawsuit. The 2006
lawsuit filed by Electronic Trading Group against the big brokerage houses.
Asensio or his clients are not among the named defendants (100 of whom are
described only as John Doe.). We decided to make room for the case here due to
reader interest in the topic and because it appears that no one else has posted
it.
Client Lawsuits
Aremissoft v. West
Highland Capital, J. David Scially, Michael Wilkins, et al I.
Complaint alleging that West Highland employees Scially and
Wilkins wrote and circulated an anonymous negative analyst report containing
numerous false statements.
Aremissoft v. West Highland, Scially, Wilkins et al II. Appendices to lawsuit, including copy of anonymous negative analyst report allegedly written and circulated by Scially and Wilkins.
Biovail Corporation v.
Parker Quillen, Quilcap Corporation, and Little Wing, L.P. Lawsuit
alleging that Parker Quillen, owner of Quilcap and Little Wing, engaged in a
campaign involving the spreading of false information about Biovail in order to
benefit a short position in the company's stock.
Defense Sentencing Memo I and Defense Memo II. Response by Elgindy defense team to sentencing recommendations. Large files (117 and 64 pages respectively, but highly worthwhile reading.)
Elgindy
Co-conspirator Terrell Gets Probation. Judge Raymond Dearie
imposes only probation and a fine on Donald Kent
Terrell, who cooperated with the government.
Elgindy
Letter to Judge Dearie. Only weeks before his March 22 sentencing
date, Tony decides to compete with the dumb
criminals you see on TV by violating the rule against contacting the
judge directly.
Judge's reaction.
Elgindy Plea for Leniency. A
second letter from Elgindy to the judge, this ne properly sent (through his attorneys), the day before sentencing.
Elgindy's take on why he should be allowed to return to his family.
Elgindy Trial Coverage. Collection of
articles covering courtroom developments from start of trial in November, 2004
until return of guilty verdicts in January, 2005.
Elgindy Pleads Guilty to Using Fake Identity.
Brief article from early August 2005 regarding guilty plea to charges that,
while out on bail, Elgindy used false ID when trying to board a flight.
Ex-Agent
Sentenced in Insider Trading (Lynn Wingate). Judge Raymond Dearie
sentences Lynn Wingate to probation.
FBI
Agent to Serve 6 Years in Stock Case. Outcome of sentencing
hearing for defendant Jeffrey Royer.
Five,
Including F.B.I. Agents, Are Named in a Conspiracy.
May 2002 article describing original charges.
Former FBI Agent Wingate Pleads Guilty. Brief article on agent Wingate's guilty plea that also updates the status of defendants Peters, Cleveland, Daws, Terrell, and Hansen as of 6/23/05.
Government Sentencing Memo. The
government's submission to the court as to what Elgindy's sentence should be.
Large file but, as with defense memos, worthwhile reading. Click here for the
Table of Contents.
Global Client Elgindy Slammed by U.S. Attorney.
For those who don't have time to read the sentencing memos, a good piece
summarizing the government's memo. Hopefully, a corresponding piece on the
defense's submission will follow. (Wish granted. See last
entry, TSX-V's Global Client Elgindy Blast's US Prosecutor.)
Guilty Plea of Jonathan Daws. Transcript of plea hearing where Jonathan Daws, former portfolio manager of the Dallas-based Gryphon Partners hedge fund pled guilty to one count of charges against him. Note: Scroll down after opening file.
Hedge
Fund Manager (Jonathan Daws) Gets Probation. Despite an agreement
in which he pled guilty to one count of securities fraud and agreed to serve 18
to 24 months in prison, Jonathan Daws
escapes with only three years probation and a fine of $50,000.
Jury Verdict. Count by count, how the jury ruled on each of the 30-odd charges against Elgindy.
Last
Defendant Sentenced in Elgindy Case. Elgindy Webmaster
Robert Hansen is fined and put on probation for
his part in the case.
Prison
Sentence for a Short Seller. Judge Raymond Dearie sentences
Tony
Elgindy.
Superseding Indictment. The
replacement for the original indictment. It adds hedge fund manager
Jonathan Daws and provides new details regarding the allegations. Derrick
Cleveland is no longer named because he has pled guilty.
Trader Courted Attention, Trouble. One of the best profiles of Elgindy, published shortly after his arrest in 2002.
TSX Member Global's Client Cleveland Pleads Guilty. The first guilty plea in the case, from associate Derrick Cleveland.
TSX Member Global's Client Elgindy Noted in New
Charge. A confusingly titled, but recommended article
about the arrest of Elgindy's webmaster, Robert Hansen. He has since pled
guilty to one count of conspiracy to commit securities fraud.
TSX-V's
Global Client Elgindy Blasts U.S. Prosecutor.
Another recommended piece by Lee Webb of Stockwatch, who manages to tame
large amounts of material for those who don't have time to plow through it.
TSX-V's Global Client Elgindy
Rebuked by U.S. Judge. Things are
getting a bit crazy.
Here's Lee Webb to fill you in on what's been happening as of March 20, 2006—two
days before Elgindy's sentencing date.
*
This
section is provided solely in response to reader interest. Its inclusion
should not be interpreted as suggesting any involvement by Manuel Asensio in the
Elgindy matter.
Bar from Securities Industry. The complete ruling of the NASD Hearing Panel barring Asensio from associating with any NASD member firm. Useful for understanding the circumstances that caused a hearing panel to bar Asensio from the industry, but highly misleading regarding the history of Asensio's brokerage. Our advice: do not rely on pages 5-7; they are riddled with omissions, inaccuracies, and dubious statements.
Disciplinary
History I. [666 KB] Asensio's personal CRD [Central
Registration Depository] file as of
December, 2002. Complete version as provided to state regulators--more
comprehensive than reports that NASD provides in response to inquiries from the
public.
Disciplinary History II. [804 KB]
CRD file for Asensio & Company as of December, 2002. More comprehensive
than reports that NASD provides to in response to inquiries from the public.
Disciplinary History
III, Integral Securities. The final regulatory file for Asensio's
brokerage, dated late 2007. Includes complete list of NASD/FINRA
regulatory actions against Asensio's brokerage as well as notation of its
expulsion from the securities industry.
NASD Letter of Acceptance, Waiver, and Consent.
[480 KB] The full text of Asensio's
most recent disciplinary violations (October 2000).
NASD Statutory
Disqualification Page. Overview of the Statutory Disqualification
process.
The Florida Lawsuit
(Murphy v. Steinberg & Lyman et al)
Complaint. [722 KB] Norman
Murphy's original lawsuit against Asensio and Steinberg & Lyman, alleging they
defrauded and deceived him when they reneged on a written agreement to sell his
securities to a willing buyer, opting instead to fill the buyer's order with
securities they were able to obtain more cheaply elsewhere.
Court Docket. [860 KB] List of
events in Murphy case, including dates when Asensio filed motions to vacate and
set aside judgment against him.
Court Order Implementing Jury's 250K Verdict. Text of judge's order, retyped from original for ease of reading.
Jury
Verdict and Court Order. [200 KB] Scans of the originals,
somewhat difficult to read.
Motion to Vacate and Motion to Set Aside Judgment. Two motions filed by Asensio, one in
1990, the other in 1991, demonstrating he knew of the verdict long before he is
willing to admit, and certainly before he filed his broker-dealer application in
1993.
Set-Aside of Verdict. The 1998 set aside of the original verdict
on grounds that the process server had not been properly licensed.
Transcript of 1998 Hearing. [1.2 MB] Asensio
on the stand, insisting his first knowledge of the verdict came around 1996, in
startling contradiction to court docket showing that he attempted to have
verdict overturned as early as 1990.
The Pennsylvania Lawsuit
(Hemispherx v. Asensio)
Court Opinion Submitted to Appeals Court. Judge Albert Sheppard's detailed explanation of his decision to order a new trial due to Asensio's outrageous courtroom conduct. Relevant section begins on page 18. Court Order for New Trial. Judge Albert Sheppard grants Hemispherx's request for a new trial due to Asensio's conduct during the first trial (July 2002).
Ill Will. Article from the Philadelphia Inquirer describing the trial that became a "circus" thanks in no small part to Asensio's antics.
Lowry Report. Former SEC accountant Robert Lowry examines the records of Asensio and his clients in Hemispherx stock--and finds "naked shorting" and trading ahead of research reports.A Short-Seller Trades Blows With a Target Who Just Won't Fold. Wall Street Journal article on the early stages of the battle between Hemispherx and Asensio, including the impact of the litigation on Asensio's business (June 2000).
Testimony of Gary Blick, M.D. Excerpt from trial testimony of Professor Blick, who described threatening phone call from Asensio and his demands that Blick cease testing of Hemispherx's drug and immediately issue a letter describing it as ineffective and toxic.
Weinstein Letter. Opinion of Martin Weinstein of Foley & Lardner law firm as to whether Asensio violated any criminal laws in his efforts to adversely affect the price of Hemispherx stock. Prepared at request of Hemispherx legal team.
Second Pennsylvania Lawsuit
(Dilworth Paxson v. Asensio)
Court Docket. List of events in this lawsuit, in which Asensio's former lawyers are sued him for nonpayment of fees.
Opposition to
Arbitration I. Court filing by Asensio that outlines
his position for withholding payment and claiming that Dilworth actually owes
him a large sum.
Opposition to
Arbitration II. Brief filed by Asensio opposing effort to submit
dispute to arbitration on grounds that he signed agreement providing for
it "under duress." Also elaborates on his allegations that Dilworth
Paxson attorneys were incompetent.
Trial Outcome I (Legal Document). After a non-jury trial in April, the court issues this ruling in favor of Dilworth Paxson. Asensio is required to honor the arbitration agreement he signed with his former attorneys.
Trial Outcome II
(Brief Article). Legal Intelligencer on the ruling against
Asensio. Summarizes the judge's ruling well, but neglects to mention that
a new trial has been ordered in Asensio v. Hemispherx--the case where Dilworth
represented Asensio.
The South Carolina Lawsuit
(Miller & Pearce v. Asensio)
Rare Section 10(b) Jury Verdict Upheld. Brief article from hedge fund publication about case.
Ruling of Appeals Court. Full text of the
Fourth Circuit Court of Appeals, upholding the jury's verdict.
Ruling on Post-Trial Motions [1044 KB]. Full text of Judge Norton's rulings on
several post-trial motions, including denial of Asensio's effort to have verdict
changed from "judgment for plaintiffs" to "judgment for defendant."
Trial Testimony. Excerpt from Asensio's
courtroom testimony.
West Highland and Blue Ridge (JAG Holdings) SEC Filings (1998 and earlier)
Quarterly filings for 1999 to present available at
SEC website.
Use JAG Holdings as company name when searching for Blue Ridge reports.
Filings are listed as Form 13F-HR.
Due to a need to streamline the site, it has been necessary to remove the actual
filings listed that were previously posted. Instead, we have excerpted the relevant information
from each. Click here for the list.
Page Created 11/30/02 • Updated 12/09/02 • 12/22/02 • 12/26/02 • 3/31/03 5/8/03 • 5/15/03 • 6/08/03 • 12/24/03 • 5/04/04 • 3/18/05 • 3/26/05 • 3/30/05 • 8/4/05 • 9/4/05 • 1/02/06 • 2/7/06 • 2/20/06 • 3/06/06 • 3/19/06 • 03/20/06 • 03/21/06 • 3/22/06 • 4/24/06 • 7/12/06 • 08/09/06