National Lampoon Exec Accused of Stock Fraud
National Lampoon exec, others allegedly schemed to inflate stock prices.
Dec. 15, 2008— -- It's no laughing matter. The CEO of National Lampoon, which produced some of the country's more memorable comedies, has been charged with securities fraud.
Daniel Laikin is accused of hiring someone to invest money in the company's stock to manipulate the market and create the appearance of "steady demand."
The alleged goal: to artificially inflate the price of National Lampoon's stock. The government claims Laikin wanted to create better conditions for potential buyers and "strategic partnerships" for the company which released hits, including the legendary "Animal House" and "Vacation" series.
Laikin was among seven individuals charged in a securities fraud case involving a stock promoter, Eduardo Rodriguez, who also was allegedly working to pump up the stocks of two other firms, Advatech, Corp. and Swedish Vegas, Inc.
Rodriguez was hired independently by all three companies.
The alleged scheme to inflate the stocks of the three companies involved Rodriguez, of Livingston, N.J., who prosecutors say agreed to split the fees with a cooperating witness who was working with the FBI and the SEC.
The charging documents allege that, between March and July 2008, the conspiracy involved a series of wire transfers and several large purchases of stock.
According to the indictment in the case of Laikin, "On or about May 20, 2008, at the direction of defendant Laikin, Rodriguez and the [cooperating witness] caused purported retail purchases to be made of approximately 25,000 shares of National Lampoon stock at approximately $2.03 per share, for a total of approximately $50,750. In reality, the Federal Bureau of Investigation ("FBI") made those purchases with its undercover funds."
According to the indictments, Laikin told Rodriguez he wanted to raise the firm's stock price to $5 each and allegedly shared inside company information and shareholder lists with Rodriguez.
According to the indictment, Laikin directed a consultant, Dennis Barsky of Las Vegas, to pay Rodriguez the funds to purchase the stock of National Lampoon.
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