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Day Traders On-line probed
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April 2, 1999: 3:56 a.m. ET
SEC is investigating claims of payoffs for stock picks, report says
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LONDON (CNNfn) - The Securities and Exchange Commission has launched an investigation into activities at Day Traders On-line and may broaden its inquiry into market practices in the booming online retail sector, according to a published report Friday.
The SEC is investigating allegations that the firm received pay-offs for some stock recommendations, The Wall Street Journal reported Friday.
The company firmly denied the claims but said it would cooperate with any SEC requests. "We don't get any compensation directly or indirectly from any company, any stock, or any promoter whatsoever in relation to the recommendations we make on our site," Day Traders' founder Ray Johns told the Journal.
The report said the SEC has stepped up its oversight of online retail trading operators, which have mushroomed over the past year. It has also contacted two other day trading players, Trading Places Founder Chris Rea and Joe Park, an Internet stock guru also known as TokyoMex, according to the Journal.
The SEC declined to comment on the report but did launch a sweep of 44 Internet stock trading firms last October amid allegations of fraud and mis-selling.
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