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From: dbg@u1100a.UUCP (D B Grooms)
Newsgroups: net.consumers
Subject: First Jersey Securities charged with fraud
Message-ID: <840@u1100a.UUCP>
Date: Mon, 18-Nov-85 13:28:49 EST
Article-I.D.: u1100a.840
Posted: Mon Nov 18 13:28:49 1985
Date-Received: Tue, 19-Nov-85 05:37:21 EST
Organization: Bell Communications Research, Piscataway, NJ
Lines: 32

Some time ago in this newsgroup, a number of articles were posted
criticizing FJS as a very poor investment service at best, and
probably a ripoff or fraud.  A recent Associated Press newspaper article 
would seem to confirm that view.  The following are excerpts from the
article:

Associated Press, 11/1/85

"The Securities and Exchange Commission yesterday charged First Jersey
Securities Inc. with violations of the anti-fraud law for allegedly 
charging excessive prices for securities".
...
"Generally, the SEC charges that First Jersey Securities Inc., and its
founder and chief executive officer, Robert E. Brennan, engaged in a 
series of fraudulent business practices. Those dealings allegedly involve
'misstatements and omissions of material facts, contradictory buy-sell
recommendations in markups and markdowns with respect to the
securities ...'".
...
"The complaint further charges that First Jersey Securities and Brennan told
some of their branch offices to recommend that customers sell securities in
which First Jersey Securities made a market. But at the same time, they told
other branch offices to recommmend that customers purchase these securities
for the alleged purpose of creating profits for First Jersey Securities.
The complaint says that First Jersey Securities ... made gross profits of
at least $9.6 million by charging markups and-or markdowns of up to 124
percent on such transactions".

Associated Press, 11/1/85

				David Grooms
				{ihnp4,bellcore,pyuxww}!u1100a!dbg