SEC Charges Vonage CEO Jeff Citron with fraud!

Posts: 20 · Vonage Forum Associate Joined: Jun 24, 2005 Posts: 20

SEC Charges Former Day-Trading Principals with Securities Fraud; Others Charged with Fraud or Violating Recordkeeping and Reporting Rules

Quote:

quote:FOR IMMEDIATE RELEASE
2003-5
Defendants Agree to Pay Total of $70 Million

Washington, D.C., January 14, 2003 — The Securities and Exchange Commission today charged Sheldon Maschler, Jeffrey A. Citron, Michael McCarty, Erik Maschler, and Heartland Securities Corp. with participating in an extensive fraudulent scheme involving the Nasdaq Stock Market's Small Order Execution System (SOES) from 1993 to June 2001. These defendants and others have agreed to pay over $70 million in penalties and disgorgement to settle the matter. Of the total penalties, Sheldon Maschler will pay approximately $29.2 million and Citron will pay approximately $22.5 million — among the largest penalty amounts the SEC has ever obtained from individuals.

Posts: 98 · Posted: Mon Jun 27, 2005 1:45 am Post subject:

OK. The article is two and a half years old, the fine has been paid, and he's been a good boy since then. What's your point?

Posts: 20 · Vonage Forum Associate Joined: Jun 24, 2005 Posts: 20

It's important for the viability of the company for one thing.
It's also important for people who value ethical concerns.
If I had known earlier. . .
people should know. . .that's all

Posts: 1389 · Posted: Mon Jun 27, 2005 7:19 am Post subject:

It seems gnexus likes to be one of the anti-vonage people or here, always threatening to cancel accounts, stirring up trouble...why else post a 2 year old article?

Posts: 1422 · Posted: Mon Jun 27, 2005 7:34 am Post subject:

gnexus wrote:

It's important for the viability of the company for one thing.

Please explain how it has an impact on Vonage. Was not Jeff Citron as CEO able to raise $200 million in additional funding just several months ago? Do you think the people who gave that cash were unaware of his background or had questions on his ethics?

Jeff Citron is a giant in the financial world.

VON Magazine Article wrote:

Citron began his rise to fame by bringing about a technical revolution in the financial services industry. In 1995, he founded The Island ECN, a computerized trading system designed to eliminate order execution problems. Instinet Group later acquired The Island ECN for US$503 million. It's now one of the biggest of the global financial exchanges, and is said to be responsible for more than one in four NASDAQ trades.

After scoring a major success with The Island ECN, Citron focused on his new role as the Chairman and CEO of Datek Online Holdings Corporation and its six subsidiaries. Citron helped guide Datek, as Datek Securities Corporation transitioned from being an ordinary broker-dealer, to becoming Datek Online Brokerage Services. Under Citron's leadership, Datek grew to become the fourth largest online brokerage in the US with assets of $14 billion. Although the privately-held Datek had considered executing an IPO in late 2001, Ameritrade Holdings ultimately emerged the winner of a private auction to acquire the company in 2002 for $1.3 billion in stock. With its nearly 3 million customers, Ameritrade is now the second largest online financial services firm behind the Charles Schwab Company.

Citron left Datek in 1999 and, recognizing a similar growth opportunity, helped found Vonage, investing $70 million of his own money.

gnexus wrote:

If I had known earlier. . .

Finish the sentence please. What would you have done differently if you had known earlier? Why is it so important for people to know this one single fact about Vonage's CEO?

Furthermore, how can you justify your "people just ought to know" position when the thread has such a misleading, incorrect and inflammatory title?

Posts: 1389 · Posted: Mon Jun 27, 2005 7:40 am Post subject:

Don't waste the energy typing...if you go through his previous posts they are all negative in nature...if you don't like that something happened 2 years ago, cancel your Vonage service...

Posts: 98 · Posted: Mon Jun 27, 2005 8:40 am Post subject:

This person, gnexus, seems to be trying to spread his message, whatever it is...
http://www.broadbandreports.com/forum/remark,13754357

Apparently this is not a forum, according to gnexus. He/she does not realize how many people read multiple forums.

Posts: 2126 · Posted: Mon Jun 27, 2005 9:16 am Post subject:

I think the original poster has made his point, what ever that may have been. I see no further value that could come by leaving this forum thread open.