Asensio Exposed!                                                     
       Warning: may contain loud, rattling skeletons

                                                                                                                                                                                                           

  Asensio Makes Threat in Effort to Shut Us Down!

 NASD Boots Asensio's Brokerage  (click for details)
                       
 Both Now Expelled from Securities Industry
                                                                                                           
 
Welcome to Asensio.CoN    Asensio.CoN Part Two  (7/06)                       

   12/28/07  Revised & Updated Asensio FAQ
 
  03/18/06  The Elgindy Files (new items 2/07/06; 3/19/06; 3/22/06; 07/14/06; 12/18/07)                              
   
 05/05/04  Appeals Court Upholds Fraud Verdict Against Asensio
   04/04/04  Asensio Charged Again
  
 01/11/04  Bill Wexler Update
  
12/24/03  How Asensio Duped Regulators                                                                            
  
     
                                                                                                                                                                                                                                                        

Site Updates
He Tries to Silence Us
RIP Integral Securities
Asensio.CoN Website
Asensio.Con Part 2
"Barred" from Industry
NASD:Unfit to Regulate
Unfit to Regulate Pt 2
NASD Plot Thickens
Is NASD Corrupt?
Is NASD Corrupt Pt 2
How He Duped NASD
1989 Fraud Verdict
2002 Fraud Verdict
Hedge Fund Flack
Hedge Fund Flack Pt 2
Asensio FAQ
Asensio FAQ #2
Who Writes the Script?
Review of Sold Short
His Clients
Long/Short Strategy
Asensio Under Oath
Dissing the Courts
Who is Bill Wexler?
Who is Bill Wexler Pt 2
Bill Wexler Update
His Doctored Record
Reading Room
Contact Regulators
Reader Comments
Feedback
New Link Bar
New Link Bar 2

 
 

The Reading Room


This page is organized into the following sections. 

Archived Pages of Website

General
Client Lawsuits
The Elgindy Files

NASD Issues
The Florida Lawsuit (Murphy v. Steinberg & Lyman et al)
The Pennsylvania Lawsuit (Hemispherx v. Asensio)
Second Pennsylvania Lawsuit (Dilworth Paxson v. Asensio)
The South Carolina Lawsuit (Miller & Pearce v. Asensio)
West Highland and Blue Ridge SEC Filings (1998 and earlier)


Archived Pages of Website

His NASD Record.   NASD slapped Asensio's wrist five times before filing the charges that led to him being barred from the securities industry. Here is the story, along with examples of how NASD officials simply rolled over when Asensio repeated the same offenses and mocked their discipline of him. 


Letter, California Justice Department.  Letter from site to California DOJ regarding effort by Asensio to intervene in matter regarding MultiMedia Games.  We urged that DOJ examine whether client hedge funds were hiding behind his request. 

Legitimate License?  A chronology of events in Asensio's career relative to his registration and licensure as a stockbroker and broker-dealer.  Shows excerpts of his broker-dealer application where he denies any investment-related court rulings or liens against him.  Current through early 2003 when first posted as page of site.

Letter to SEC.  The site urges the SEC to think outside the box about hedge fund abuses.

Manuel Asensio, P.I.  Asensio plays Eliot Ness at PolyMedica in Florida in an attempt to interview employees. 

NASD Dissed AgainMore evidence that Asensio is incorrigible, and NASD not uninterested in his repeat offending.  The ink was barely dry on his November, 2000 settlement agreement before Asensio and his staff were violating the agreement again.  Amazingly, NASD brought no charges even though it filed a case against him in February 2004.
 

General 

Broker-Dealer Application I
Asensio's 1993 application [632 KB] and schedules [373 KB] as submitted to the SEC and NASD. 

Broker-Dealer Application II. [1284 KB] 
Asensio's 2003 Form BD.  Click for second half of the form [1102 KB].

Equities Magazine Expose. [840 KB] 
Robert Flaherty reviews Asensio's recent book and finds a talent for revisionist history and hypocrisy.

Missing Picks IBusiness Week article citing Action Performance, Shared Medical Systems, and U.S. Office Products as Asensio picks--none of which are mentioned on his website.

Missing Picks IIBusiness Week article citing an additional Asensio pick missing from his website:  Computer Learning
Centers.

Naked Shorting Lawsuit.  The 2006 lawsuit filed by Electronic Trading Group against the big brokerage houses.  Asensio or his clients are not among the named defendants (100 of whom are described only as John Doe.). We decided to make room for the case here due to reader interest in the topic and because it appears that no one else has posted it.       


Client Lawsuits

Aremissoft v. West Highland Capital, J. David Scially, Michael Wilkins, et al I. 
Complaint alleging that West Highland employees Scially and Wilkins wrote and circulated an anonymous negative analyst report containing numerous false statements.

Aremissoft v. West Highland, Scially, Wilkins et al II.  Appendices to lawsuit, including copy of anonymous negative analyst report allegedly written and circulated by Scially and Wilkins.

Biovail Corporation v.  Parker Quillen, Quilcap Corporation, and Little Wing, L.P.  Lawsuit alleging that Parker Quillen, owner of Quilcap and Little Wing, engaged in a campaign involving the spreading of false information about Biovail in order to benefit a short position in the company's stock.

 

 The Elgindy Files*

Defense Sentencing Memo I and Defense Memo II. Response by Elgindy defense team to sentencing recommendations. Large files (117 and 64 pages respectively, but highly worthwhile reading.)

New!Elgindy Co-conspirator Terrell Gets Probation.  Judge Raymond Dearie imposes only probation and a fine on Donald Kent Terrell, who cooperated with the government.

Elgindy Letter to Judge Dearie.  Only weeks before his March 22 sentencing date, Tony decides to compete with the dumb criminals you see on TV by violating the rule against contacting the judge directly.  Judge's reaction.    

Elgindy Plea for Leniency.  A second letter from Elgindy to the judge, this ne properly sent (through his attorneys), the day before sentencing.  Elgindy's take on why he should be allowed to return to his family.

Elgindy Trial Coverage.  Collection of articles covering courtroom developments from start of trial in November, 2004 until return of guilty verdicts in January, 2005.

Elgindy Pleads Guilty to Using Fake Identity.  Brief article from early August 2005 regarding guilty plea to charges that, while out on bail, Elgindy used false ID when trying to board a flight. 

New!Ex-Agent Sentenced in Insider Trading (Lynn Wingate).  Judge Raymond Dearie sentences Lynn Wingate to probation.

New!FBI Agent to Serve 6 Years in Stock Case.  Outcome of sentencing hearing for defendant Jeffrey Royer.

Five, Including F.B.I. Agents, Are Named in a Conspiracy. May 2002 article describing original charges.

Former FBI Agent Wingate Pleads Guilty.  Brief article on agent Wingate's guilty plea that also updates the status of defendants Peters, Cleveland, Daws, Terrell, and Hansen as of 6/23/05.

Government Sentencing Memo. The government's submission to the court as to what Elgindy's sentence should be.  Large file but, as with defense memos, worthwhile reading. Click here for the Table of Contents.

Global Client Elgindy Slammed by U.S. Attorney.  For those who don't have time to read the sentencing memos, a good piece summarizing the government's memo.  Hopefully, a corresponding piece on the defense's submission will
follow. (Wish granted. See last entry, TSX-V's Global Client Elgindy Blast's US Prosecutor.)

Guilty Plea of Jonathan Daws.  Transcript of plea hearing where Jonathan Daws, former portfolio manager of the Dallas-based Gryphon Partners hedge fund pled guilty to one count of charges against him.  Note: Scroll down after opening file. 

New!Hedge Fund Manager (Jonathan Daws) Gets Probation.  Despite an agreement in which he pled guilty to one count of securities fraud and agreed to serve 18 to 24 months in prison, Jonathan Daws escapes with only three years probation and a fine of $50,000.

Jury Verdict.  Count by count, how the jury ruled on each of the 30-odd charges against Elgindy.

New!Last Defendant Sentenced in Elgindy Case.  Elgindy Webmaster Robert Hansen is fined and put on probation for his part in the case.

New!Prison Sentence for a Short Seller.  Judge Raymond Dearie sentences Tony Elgindy.

Superseding Indictment.  The replacement for the original indictment.  It adds hedge fund manager Jonathan Daws and provides new details regarding the allegations.  Derrick Cleveland is no longer named because he has pled guilty.

Trader Courted Attention, Trouble.  One of the best profiles of Elgindy, published shortly after his arrest in 2002.

TSX Member Global's Client Cleveland Pleads Guilty.  The first guilty plea in the case, from associate Derrick Cleveland.

TSX Member Global's Client Elgindy Noted in New Charge.  A confusingly titled, but recommended article about the arrest of Elgindy's webmaster, Robert Hansen.  He has since pled guilty to one count of conspiracy to commit securities fraud.

TSX-V's Global Client Elgindy Blasts U.S. Prosecutor.   Another recommended piece by Lee Webb of Stockwatch, who  manages to tame large amounts of material for those who don't have time to plow through it.  

TSX-V's Global Client Elgindy Rebuked by U.S. Judge.  Things are getting a bit
crazy.  Here's Lee Webb to fill you in on what's been happening as of March 20, 2006—two days before Elgindy's sentencing date.


* This section is provided solely in response to reader interest. Its inclusion should not be interpreted as suggesting any involvement by Manuel Asensio in the Elgindy matter.


 

NASD Issues

Assurances to NASD. Reforms promised by Asensio to bring his firm into compliance with NASD rules in the aftermath of his latest censure (October, 2000).

Bar from Securities Industry.  The complete ruling of the NASD Hearing Panel barring Asensio from associating with any NASD member firm.  Useful for understanding the circumstances that caused a hearing panel to bar Asensio from the industry, but highly misleading regarding the history of Asensio's brokerage.  Our advice:  do not rely on pages 5-7; they are riddled with omissions, inaccuracies, and dubious statements.

Disciplinary History I. [666 KB]   Asensio's personal CRD [Central Registration Depository] file as of December, 2002.  Complete version as provided to state regulators--more comprehensive than reports that NASD provides in response to inquiries from the public.

Disciplinary History II. [804 KB]  CRD file for Asensio & Company as of December, 2002.  More comprehensive than reports that NASD provides to in response to inquiries from the public.

Disciplinary History III, Integral Securities.  The final regulatory file for Asensio's brokerage, dated late 2007.  Includes complete list of NASD/FINRA regulatory actions against Asensio's brokerage as well as notation of its expulsion from the securities industry.

NASD Letter of Acceptance, Waiver, and Consent. [480 KB] The full text of Asensio's most recent disciplinary violations (October 2000).

NASD News Release. Summary of the violations that resulted in Asensio's most recent censure and fine (December, 2000).

NASD Notice Regarding Use of Long/Short Positions to Evade Short-Sale Rule. NASD memorandum reminding members that use of simultaneous long and short positions to evade short-sale rules is prohibited.

NASD Statutory Disqualification Page.  Overview of the Statutory Disqualification process.


The Florida Lawsuit
(Murphy v. Steinberg & Lyman et al)

 Complaint. [722 KB]  Norman Murphy's original lawsuit against Asensio and Steinberg & Lyman, alleging they defrauded and deceived him when they reneged on a written agreement to sell his securities to a willing buyer, opting instead to fill the buyer's order with securities they were able to obtain more cheaply elsewhere.

Court Docket. [860 KB]  List of events in Murphy case, including dates when Asensio filed motions to vacate and set aside judgment against him.

Court Order Implementing Jury's 250K  Verdict.  Text of judge's order, retyped from original for ease of reading.

Jury Verdict and Court Order. [200 KB]  Scans of the originals, somewhat difficult to read.

Motion to Vacate and Motion to Set Aside Judgment.  Two motions filed by Asensio, one in 1990, the other in 1991, demonstrating he knew of the verdict long before he is willing to admit, and certainly before he filed his broker-dealer application in 1993.

Set-Aside of Verdict.  The 1998 set aside of the original verdict on grounds that the process server had not been properly licensed.

Transcript of 1998 Hearing. [1.2 MB]  Asensio on the stand, insisting his first knowledge of the verdict came around 1996, in startling contradiction to court docket showing that he attempted to have verdict overturned as early as 1990.

 

The Pennsylvania Lawsuit
(Hemispherx v. Asensio)

Court Docket. Link to court chronology of lawsuit events.

Court Opinion Submitted to Appeals Court.  Judge Albert Sheppard's detailed explanation of his decision to order a new trial due to Asensio's outrageous courtroom conduct.  Relevant section begins on page 18.

Court Order for New Trial. Judge Albert Sheppard grants Hemispherx's request for a new trial due to Asensio's conduct during the first trial (July 2002).

Ill WillArticle from the Philadelphia Inquirer describing the trial that became a "circus" thanks in no small part to Asensio's antics.

Lowry Report. Former SEC accountant Robert Lowry examines the records of Asensio and his clients in Hemispherx stock--and finds "naked shorting" and trading ahead of research reports.

A Short-Seller Trades Blows With a Target Who Just Won't Fold. Wall Street Journal article on the early stages of the battle between Hemispherx and Asensio, including the impact of the litigation on Asensio's business (June 2000).

Testimony of Gary Blick, M.D.  Excerpt from trial testimony of Professor Blick, who described threatening phone call from Asensio and his demands that Blick cease testing of Hemispherx's drug and immediately issue a letter describing it as ineffective and toxic.

Weinstein Letter.   Opinion of Martin Weinstein of Foley & Lardner law firm as to whether Asensio violated any criminal laws in his efforts to adversely affect the price of Hemispherx stock.   Prepared at request of Hemispherx legal team.



Second Pennsylvania Lawsuit
(Dilworth Paxson v. Asensio)

Court DocketList of events in this lawsuit, in which Asensio's former lawyers are sued him for nonpayment of fees.

Opposition to Arbitration I.  Court filing by Asensio that outlines his position for withholding payment and claiming that Dilworth actually owes him a large sum.

Opposition to Arbitration IIBrief filed by Asensio opposing effort to submit dispute to  arbitration on grounds that he signed agreement providing for it "under duress."   Also elaborates on his allegations that Dilworth Paxson attorneys were incompetent.

Trial Outcome I (Legal Document).   After a non-jury trial in April, the court issues this ruling in favor of Dilworth Paxson.   Asensio is required to honor the arbitration agreement he signed with his former attorneys.

Trial Outcome II (Brief Article)Legal Intelligencer on the ruling against Asensio.  Summarizes the judge's ruling well, but neglects to mention that a new trial has been ordered in Asensio v. Hemispherx--the case where Dilworth represented Asensio.



The South Carolina Lawsuit
(Miller & Pearce v. Asensio)

Affidavit. [480 KB] Asensio's sworn affidavit, filed in the South Carolina lawsuit against him, in which he asserts that he has never had a customer complaint or been accused of illegal activities by industry regulators (see paragraph 3)

Case Description. Judge David Norton's order on a number of pre-trial issues which gives background on the case made by the plaintiffs against Asensio.

Deposition. [1.9 MB] Publicly available excerpts from Asensio's deposition.

Rare Section 10(b) Jury Verdict UpheldBrief article from hedge fund publication about case.  

Ruling of Appeals Court.  Full text of the Fourth Circuit Court of Appeals, upholding the jury's verdict.

Ruling on Post-Trial Motions [1044 KB]. Full text of Judge Norton's rulings on several post-trial motions, including denial of Asensio's effort to have verdict changed from "judgment for plaintiffs" to "judgment for defendant."

Trial Testimony.  Excerpt from Asensio's courtroom testimony.

Verdict. Jury verdict affirming that Asensio violated anti-fraud provisions of SEC act but providing no damage award to plaintiffs. (Asensio was ordered to pay their court costs). A ruling is pending on plaintiffs' motion for a new trial limited to the question of damages. Also pending are motions by Asensio asking that the court declare him the prevailing party and relieve him of responsibility for Plaintiffs' costs.

 

West Highland and Blue Ridge (JAG Holdings) SEC Filings (1998 and earlier)

Quarterly filings for 1999 to present available at SEC websiteUse JAG Holdings as company name when searching for Blue Ridge reports.  Filings are listed as Form 13F-HR.

Due to a need to streamline the site, it has been necessary to remove the actual filings listed that were previously posted.  Instead, we have excerpted the relevant information from each.  Click here for the list. 

 

Page Created 11/30/02  •  Updated 12/09/02  •  12/22/02  •  12/26/02  •  3/31/03    5/8/03  •  5/15/03 •  6/08/03  •  12/24/03  • 5/04/04  •  3/18/05 •  3/26/05 •   3/30/05 • 8/4/05 • 9/4/05 • 1/02/06  •  2/7/06  • 2/20/06  •  3/06/06  • 3/19/06  • 03/20/06  •  03/21/06  •  3/22/06  •  4/24/06  • 7/12/06 •  08/09/06