National Lampoon Chief Busted For Stock Fraud

Wall Street Fraud




The chief executive of National Lampoon, Daniel S. Laikin, was charged on Monday with conspiracy and securities fraud in what prosecutors said was an attempt to raise the value of the company’s stock artificially.

The National Lampoon, a media company in Los Angeles with projects in feature films, television programming and interactive entertainment, owns interest in the movies “Animal House” and the “Vacation” series.

Mr. Laikin, who was arrested on Monday in Los Angeles, and five other defendants were indicted by a grand jury in Philadelphia.

Laurie Magid, acting United States attorney for the Eastern District of Pennsylvania, said in a statement, “These schemes were designed to corrupt the market and reap large profits for these defendants at the expense of the average investor.”

Mr. Laikin was accused of promising kickbacks to a stock promoter to raise the value of National Lampoon’s stock.

The investigation was conducted by the Philadelphia offices of the F.B.I., the Securities and Exchange Commission and the United States attorney.

Prosecutors said a seventh defendant, the stock promoter Eduardo Rodriguez, 49, of Livingston, N.J., enlisted other promoters to use insider information provided by the companies and drive up the share price of National Lampoon and two other companies, the Advatech Corporation of Florida, and Swedish Vegas of California. Richard J. Margulies, the chief financial officer of Advatech, is a defendant.

The stock buys were made from March to June and timed to the release of public announcements to avoid suspicion. But a witness in Pennsylvania, not part of the government but using F.B.I. funds, exposed the plan after pretending to cooperate in raising National Lampoon’s stock to $2.50 to $5 a share, from $1.87 in mid-March.

Mr. Laikin, 46, controls about 40 percent of the company’s 8.9 million outstanding shares. Had the plan succeeded, the value of his stake could have increased by up to $15 million, Ms. Magid said.

An assistant United States attorney, Derek A. Cohen, who with Louis D. Lappen will prosecute the case in Philadelphia, said Mr. Laikin was working out the terms of his release.

Mr. Laikin’s assistant, Cora Victoriano, said the company had no immediate comment.

The S.E.C. also filed civil charges against the seven defendants. Daniel Hawke, director of the S.E.C.’s regional office in Philadelphia, said paying illicit kickbacks to arrange manipulative trades “is brazen misconduct and threatens to destroy any sense of fairness that investors expect in the financial markets.”

Mr. Hawke said that trading of National Lampoon shares was halted at 9:30 a.m. on Monday. Shares closed Friday at 73 cents on the American Stock Exchange.

0 thoughts on “National Lampoon Chief Busted For Stock Fraud

  1. National Lampoon and Big Screen Entertainment Group (OTC: BSEG) recently announced their partnership. BSEG partner, stock promoter Michael Paloma aka Michael Saquella is currently serving 10 years in prison for stock fraud. Hmm, seems like it’s all related.

  2. Wow. You’re so smart Linda, I mean Julia! Good thing we’re sending your all your lies to the FBI since you are under investigation “Linda” for lying and attempting to harm public companies. Keep it up. They are coming for you and this time, they will get you and keep you in that orange jumpsuit — if they can find one big enough.

  3. Unreal ! Seems all National Lampoon is good for any more is screwing people and companies over ! Hell I guess what can you expect you have Dan Lakin x ceo of National Lampoon who is facing stock fraud Sec charges criminal ! You have the New CEO Tim Durham who well he just wont pay any of National Lampoons bills ! This is a company and 2 guys in business I would stay fare away from. I belong to a web site that has been massively screwed over by National Lampoon, Dan Lakin and Tim Durham. If any one is interested in yet another case of being screwed by National Lampoon Check it out ! !

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s