boiler room

Back in February, FINRA informed John Thomas Financial founder Anastasios “Tommy” Belesis, he of rallies for Wall Street and Wall Street 2: Money Never Sleeps fame, that he “may face disciplinary action on a claim that he artificially inflated the price of a stock,” while the Post reported that the firm was being probed by the FBI and the SEC. According to the firm’s lawyer, Robert Bursky, “There is not a shred of evidence that suggests there is an ongoing inquiry by the FBI,” and if you asked David Pitts, a spokesman for John Thomas, if the brokerage is a boiler room, which Bloomberg did, he’d say it is not (and that, on the contrary, “it helps real companies raise money and provides honest advice to investors”). Regardless of whether or not any of the allegations are true, a few business practices one might want to avoid if questions like “is this place legit” or “is this business entirely modeled after 2000′s Boiler Room” are being raised include: Read more »

  • 10 Jun 2010 at 1:17 PM

Boiler Room Guy Said He Was a Former SEC Employee

So, about the 10 dudes who were arrested yesterday for running a boiler room operation in Manhattan that swindled some elderly Florida folks out of $12 million. One of the guys arrested, Steven Kimmel, (no relation to Jimmy) told investors he used to work at the Securities and Exchange Commission. Now, we’re not sure if this is BS or not and the SEC hasn’t commented. We talked to a few veteran SEC folks who said they’d never heard of Kimmel. But the FBI did note it in its press release. Read more »