LED Medical Diagnostics Inc LEDIF

RE:RE:I think I know the reason LMD is stuck......

[ledrog]

When Gane first came on board I came across this SEC article....I held on despite this bit of DD, because I figured maybe LMD would see some similar activity....and it looks like that have, what with Hodge's outfit hyping LMD and the IR firm they hired, it was the same one KLH used, and it was a big Outsider Club pump as well....but my guess is, if I found this others probably have as well....Doing DD on a CEO is pretty standard research I would imagine:

Complan for Violatinos of Federal Securities Laws

I should note, Gane was eventually exonerated....because of safe harbor protection. But regardless the PPS for Dicom soared.

1. This action involves the fraudulent manipulation of Dicom Imaging Systems, Inc.'s common stock in 1999 and 2000 by its former president, Dr. David Gane, and the following stock promoters that Gane hired to promote Dicom stock: Jeffrey D. Welsh, Southern Financial Services, Inc., Southern Waste, Inc., dba Strategic Investors Group, Charles T. Tamburello, and Capital Research Group, Inc. (collectively the "Stock Promoters"). Gane and the Stock Promoters (collectively the "Defendants") made materially false and misleading public statements regarding Dicom's future revenues and earnings in press releases, a package of financial information, mass e-mails ("spam"), faxes, and/or interviews of Gane that were broadcast on television and placed on the Internet. Even though Dicom had failed to meet its internal financial projections - which stated that it would generate $24.7 million in revenues, and $19.7 million in earnings, in its first three years of operation - and even though Dicom had generated losses in the first six months, the Defendants continued to repeat the projections publicly. In fact, Gane even increased his revenue projection to $50 million and $60 million. The defendants kept repeating the projections, or even higher ones, even though they knew, or were reckless in not knowing, that Dicom was not meeting its initial projections. In addition, the Stock Promoters, whom Dicom paid to tout its stock, failed to disclose all of the compensation that they received for their services. Finally, the Stock Promoters set increasingly higher stock price targets and recommended that investors buy Dicom stock, but they failed to disclose their practice of selling their own Dicom shares, after issuing their recommendations, into the artificially inflated market that they and Gane created. This practice is known as "scalping" and resulted in the Stock Promoters making over $1.1 million in stock trading proceeds.