False Profits
By Linda
A Los Angeles gaming company and two of its top executives admitted to the Securities and Exchange Commission that they reported inflated assets to the agency.

Las Vegas Entertainment Network Inc., Chief Executive Joseph Corazzi, 52, and Chief Financial Officer Carl Sambus, 51, said they filed false statements in 1999 about certain assets.

Additionally, the SEC alleged that investor relations consultant Jay Goldberg, 71, hyped Las Vegas Entertainment's stock on the Internet in late 1999 without disclosing that he had previously received 85,000 company shares as compensation.

Corazzi and Sambus agreed to on order barring them from serving as an officer or director of a public company and to pay fines of $75,000 and $25,000, respectively. Goldberg agreed to pay a fine of $10,000, the SEC said.

The SEC's complaint, filed in U.S. District Court in Los Angeles, alleged that the company falsely reported that it had a $3 million gold certificate and that it had received a $190 million cash investment guarantee. Both of these assets were counterfeit, the SEC said.

The SEC revoked the registration of Las Vegas Entertainment's common stock, saying the company had overstated its assets and failed to file reports with the agency since September 1999.


 
 
 
 
 
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