Altanta attorney Ulysses Thomas Ware has been convicted of one count of securities fraud and one count of conspiracy to commit securities and wire fraud. The conviction follows a two-week jury trial in federal court. According to evidence presented at the trial, Ware and his law firm Rosenfeld, Goldman & Ware, Inc. schemed to inflate the market price of and market demand for two peny stocks, Service Systems International, Ltd. (SVSY) and Investment Technology Inc. (INZS).
From December 2001 through April 2002,? Ware published press releases with materially false and misleading information aboutthe companies. He also issued press releases with basesless stock price predictions which failed to mention that he was being compensated for promoting both stocks.
Evidence also showed that after artifically pumping up the price of both stocks, Ware sold his shares in both companies at a profit of $225,000 between January and April 2002.? Sentencing is set for July, and the federal sentencing guidelines suggest 8 to 10 years in prison.