Daily Kos Armstrong Busted by SEC

RMNIXON · 08-09-2007, 03:13 PM

DRUDGE:

DAILY KOS CO-AUTHOR FINED $30K FOR UNETHICAL STOCK TOUT
Wed Aug 08 2007 19:12:23 ET

Prominent liberal blogger Jerome Armstrong has agreed to pay nearly $30,000 in fines in a settlement with the Securities and Exchange Commission over allegations that Armstrong touted the stock of a software company, without disclosing that he was being paid to do so, the NY TIMES reports.

Armstrong is the co-author of _Crashing the Gate: Netroots, Grassroots, and the Rise of People-Powered Politics,_ with Markos Moulitsas of Daily Kos. He is also the founder of the Democratic activist site MyDD.com.

Under the agreement, Armstrong neither denies nor admits to the allegations.

"It's good to see the matter finally end," Armstrong said in an e-mail message to the TIMES.

Developing...

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Well, he was not wearing a uniform when he flogged the stock so maybe it is ok? But it not exactly anti-capitalist behavior.

I know some people might think that since he does not admit to any allegations he must therefore be an innocent victim of our criminal justice system. That plea bargaining is just blackmail of the innocent. Well, for some in certain PC categories anyway.

Sorry, don't buy that bridge for a minute!

RMNIXON · 08-09-2007, 03:19 PM

More Details:

Blogger Jerome Armstrong Settles Stock-Touting Suit with SEC

"The Commission's Complaint, filed on April 14, 2003, alleged that beginning on March 6, 2000, Armstrong touted the stock of BluePoint Linux Software Corporation ("BluePoint") by posting unsubstantiated, favorable buy recommendations on the Raging Bull internet site. Armstrong posted over eighty such recommendations during the first three weeks that the stock of BluePoint was publicly traded. According to the Complaint, Armstrong praised BluePoint's investment value and encouraged investors who were experiencing trouble having their orders filled to keep trying. The Complaint further alleged that the promoters of BluePoint were secretly transferring stock in three other companies to Armstrong at prices below the then current market for those three stocks and that Armstrong made at least $20,000 by selling the shares he received from the promoters of BluePoint."

Phantom · 08-09-2007, 03:38 PM

that's safer than robbing liquor stores I guess

this isn't newsworthy though, imo

JaJae · 08-09-2007, 03:47 PM

Not surprising considering the caliber of people associated with the higher ups of DailyKos. But I agree, not exactly news worthy. I found a link to the drudge article on a blog somewhere yesterday and read the link. I laughed and moved on.

His behavior doesn't speak for DailyKos, but it is another chip on the credibility for the site. YearlyKos has brought the site into the media attention, they shouldn't leave their dirty laundry out like this.

I'm surprised the media didn't link Mike Stark's charade w. Bill O'Reilly and his being a panelist at the YearlyKos convention.

WickedLou9 · 08-09-2007, 04:35 PM

This sort of thing happens alot in wall street. I don't condone it, but I don't think it's a big deal. It's sorta dishonest, but I would never take anyones word who was touting a stock unless they were a paid analyst like someone from S&P or the wall street journal or something. Anyone else I assume has a motive.

Thorgrim · 08-09-2007, 06:18 PM

This was way before DailyKos and MyDD, and he's wasn't running for office or anything, at the time I don't think him or Markos really knew each other, but I do know they were both trying to eek out a living...

I believe at this time he was getting back from the peace corps and the job he found was at Americorps...not exactly making the big bucks

Anyway, everyone is entitled to a mistake or two in their life (as long as they're not in a re-election campaign) so I don't think that meager $30,000 fine (compared to what he has now after being in ultra-rich Mark Warner's team until MW pulled the plug on running for president) really hurt him, and like he said he's glad he's behind it...i've been reading him for years and he has better insight than Markos a lot of times...his posts usually make me think more, i knew he was caught up in this...didn't care then, don't care now

JaJae · 08-09-2007, 06:21 PM

Originally Posted by Thorgrim

Anyway, everyone is entitled to a mistake or two in their life

I agree

RMNIXON · 08-09-2007, 07:22 PM

No, it is not newsworthy. But if we are going to post Daily Kos as a source of information and news on this board all is fair game.

Thorgrim · 08-09-2007, 08:13 PM

Originally Posted by RMNIXON

No, it is not newsworthy. But if we are going to post Daily Kos as a source of information and news on this board all is fair game.

He's not a writer, contributor, editor, front page poster, diarist, etc etc etc

The only thing he has is an old out-dated account he basically never uses...I'm probably more active on DailyKos than he is...

RMNIXON · 08-10-2007, 06:03 PM

Originally Posted by JaJae

Not surprising considering the caliber of people associated with the higher ups of DailyKos.

His behavior doesn't speak for DailyKos, but it is another chip on the credibility for the site.

Wait a minute here!

How many times do we hear the lecture that the media has a right-wing bias and the proof is the higher-ups, the ownership, ect....they have some absolute control of all news reporting and content. Not that I agree with these talking points, but they should apply in equal proportion to those on the left that do buy them. That means this persons behavior not only speaks for Daily Kos but is the mouthpiece for it!