[Text only of letters sent from the Commerce Committee Democrats]
The Honorable Janet Reno
Attorney General
Department of Justice
Constitution Ave. And 10th Street, N.W.
Washington, D.C. 20530
The Honorable Arthur Levitt, Jr.
Chairman
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Ms. Mary Schapiro
President
NASD Regulation, Inc.
1735 K Street, N.W.
Washington, D.C. 20006
Dear Attorney General Reno, Chairman Levitt, and Ms. Schapiro:
I am writing to follow up on my letter of February 6, 1997 (enclosed) with reference to organized crime's inroads into the small-cap stock market and, in that regard, to congratulate you on the criminal indictments, and companion SEC enforcement actions, announced yesterday. Given that Michigan residents were among the investors defrauded in this major scheme involving Healthtech International stock and alleged members of the Bonanno and Genovese crime families, I am particularly appreciative of your actions in this matter. This concrete proof of the Department of Justice's assurances in April that you were "addressing the situation and will continue to do so" is appreciated by the honest men and women on Wall Street and is crucial to maintaining investor confidence in the U.S. stock market.
I expect to receive shortly a GAO report regarding listing and maintenance standards on the NASDAQ Smallcap Market and their application in the fraud involving Comparator Systems Corporation. Based on the findings and recommendations of that report, I will be looking at possible regulatory and/or legislative remedies to assist you in your law enforcement efforts and to better protect investors, and would appreciate your input as well.
Thank you for your continuing efforts.
Sincerely,
JOHN D. DINGELL
RANKING MEMBER
Enclosure
cc: The Honorable Tom Bliley, Chairman
Committee on Commerce
The Honorable Michael Oxley, Chairman
Subcommittee on Finance and Hazardous Materials
The Honorable Thomas J. Manton, Ranking Member
Subcommittee on Finance and Hazardous Materials
Back to the Public Record
Home Page