Radio host charged in stock scheme

April 16, 1998
Web posted at: 2:46 a.m. EDT (0646 GMT)

NEW YORK (CNN) -- A Bethesda, Maryland-based radio show host has been accused of fraud and other charges in connection with a stock-touting scheme that cost hundreds of victims more than $2 million.

New York U.S. Attorney Mary Jo White announced the indictment of Jerry Wenger, host of the syndicated radio show "The Next Superstock." Also indicted were 18 others, including a number of persons operating as unlicensed stock brokers.

The indictment charges that Wenger was being paid to tout three over-the-counter stocks and did not disclose this to listeners, some of whom invested in the stocks. The indictment charges that Wenger received $4,000 in cash and 59,000 shares of stock which he sold for about $70,000 in Transco Research Corp. The indictment charges Wenger failed to disclose that in numerous programs.

The indictment charges the scheme occurred in 1997 and early this year and involved the following stocks: Transco Research Corp., Enviro Voraxial Technology, Inc. and Child/Grip, Inc, according to Marvin Smilon, spokesman for the U.S. attorney in the southern district of New York.

Wenger faces 10 years in prison and $500,000 in fines.

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