Cortes Wesley Randell
Encyclopedia
Cortes Wesley Randell, born in Washington DC, graduated from the University of Virginia with an engineering degree.
In 1968 Randell took his company, the National Student Marketing Corporation
(N.S.M.C., NSMC), public. The corporation catered for the youth market and was touted by various Wall Street professionals. Through publicity from acquisitions and as a result of Randell's declaration that NSMC's profits would rise from 11 cents to $2 a share, the stock rose from its Initial Public Offering price of $6 a share to over $120 during the late 1960s bull market. However instead of making a profit, the company had a loss of $859,889 during the first quarter of 1970. The official explanation was that 'mechanical errors' while changing the accounting system lead to $4 million in sales being overlooked.
The stock crashed and as the result of an investigation Randell was charged with misrepresenting the company's earnings. He pleaded guilty and was sentenced to 18 months in prison for, inter-alia, stock fraud. Investors sued Randell in civil court and were awarded $35 million.
In 1979 a federal jury convicted Randell of mail and stock fraud for his involvement with the National Commercial Credit Corp and he was sentenced to seven years in prison, released in 1984. He then was involved in the Federal News Service
which is a privately-held company based in Washington, DC with bureaus in Moscow and Jerusalem, providing timely verbatim English-language transcription of U.S., Russian and Middle East government press briefings, speeches, and conferences.
He became president and chairman of the board of directors of United Savings Club, a company featuring consumer discounts, which was reporteded to be investigated by Orlando Police Department's Economic Crime Unit. Randell went on to be Chairman and Director of a company called eModel, a wholly owned subsidiary of Options Talent Group, that was under investigation for alleged unethical and illegal behavior. Over 10% of the voting stock of Options Talent Group was controlled by his wife Joan Randell.
Many of eModel's clients have sued the company after one of its employees exposed the company's fraudulent methods. Bill Mitchell, president of the Greater Los Angeles Better Business Bureau said, "The whole thing fundamentally, from beginning to end, is a scam."
In 1968 Randell took his company, the National Student Marketing Corporation
National Student Marketing Corporation
National Student Marketing Corporation was the name of a high-flying company started by Cortes Wesley Randell, a young Washington, D.C. business consultant, in 1966 during the height of the 'Go-Go' 60s stock market. The corporation catered to the youth market and was touted by various Wall Street...
(N.S.M.C., NSMC), public. The corporation catered for the youth market and was touted by various Wall Street professionals. Through publicity from acquisitions and as a result of Randell's declaration that NSMC's profits would rise from 11 cents to $2 a share, the stock rose from its Initial Public Offering price of $6 a share to over $120 during the late 1960s bull market. However instead of making a profit, the company had a loss of $859,889 during the first quarter of 1970. The official explanation was that 'mechanical errors' while changing the accounting system lead to $4 million in sales being overlooked.
The stock crashed and as the result of an investigation Randell was charged with misrepresenting the company's earnings. He pleaded guilty and was sentenced to 18 months in prison for, inter-alia, stock fraud. Investors sued Randell in civil court and were awarded $35 million.
In 1979 a federal jury convicted Randell of mail and stock fraud for his involvement with the National Commercial Credit Corp and he was sentenced to seven years in prison, released in 1984. He then was involved in the Federal News Service
Federal News Service
Federal News Service is a company based in Washington, D.C., providing verbatim transcripts, in real time, on their website, , of United States government events including press briefings, presidential speeches, conferences and congressional hearings. Other services transcription services,...
which is a privately-held company based in Washington, DC with bureaus in Moscow and Jerusalem, providing timely verbatim English-language transcription of U.S., Russian and Middle East government press briefings, speeches, and conferences.
He became president and chairman of the board of directors of United Savings Club, a company featuring consumer discounts, which was reporteded to be investigated by Orlando Police Department's Economic Crime Unit. Randell went on to be Chairman and Director of a company called eModel, a wholly owned subsidiary of Options Talent Group, that was under investigation for alleged unethical and illegal behavior. Over 10% of the voting stock of Options Talent Group was controlled by his wife Joan Randell.
Many of eModel's clients have sued the company after one of its employees exposed the company's fraudulent methods. Bill Mitchell, president of the Greater Los Angeles Better Business Bureau said, "The whole thing fundamentally, from beginning to end, is a scam."
See also
- Lou Pearlman Talent scouting scandal
- Frederick S. MatesFrederick S. MatesFrederick S. Mates, aka Frederic Mates, founded in August 1967 the Mates Investment Fund, a high-flying mutual fund during the 'Go-Go' 60s that later crashed in the bear market of the early 1970s. Mates ran his fund from an office he dubbed the "kibbutz" and with a young staff he called his "flower...