Taking Stock of the Situation

June 12, 2000

Stephen C. Sayre, 43, of Los Angeles, is currently being sought by federal law enforcement authorities for allegedly committing securities fraud in connection with the purchase and sale of stock in San Pedro-based eConnect.

Sayre allegedly caused a company he controls, Independent Financial Reports Inc. (IFR), to issue a series of purportedly objective independent analyst reports claiming eConnect’s stock was undervalued. IFR reports also represented that IFR did not hold any eConnect stock.

According to the complaint, Sayre secretly purchased and sold eConnect stock (ECNC) using another company he controlled, Silver Screen Industries Inc. The reports issued by IFR were made public in February and March 2000, and appeared on financial news Internet sites. During the same time, eConnect stock prices increased substantially. In March 2000, Sayre allegedly caused shares of ECNC, held in the name of Silver Screen Industries, to be sold.

The Securities and Exchange Commission (SEC) filed a civil suit against Sayre in the Central District of California. On April 21, 2000, United States District Judge Margaret M. Morrow issued a preliminary injunction, freezing the assets of Sayre, IFR and Silver Screen in the SEC case. The Los Angeles office of the FBI conducted the criminal investigation.

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Insurance Journal Magazine June 12, 2000
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