National Student Marketing Corporation
Encyclopedia
National Student Marketing Corporation (N.S.M.C., NSMC) 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
professionals. Through publicity from acquisitions and the late 1960s bull market, the stock rose from its Initial Public Offering price of $6 a share to $140. Several universities, including the Harvard endowment fund, invested in NSMC. After the crash of 1970, and after Randell had cashed out a portion of his shares, several Wall Street professionals were convicted of wrongdoing by the government. Some of these accused were later acquitted, with at least one spending some time in jail. Following an investigation of Randell's role in the stock crash, prosecutors alleged that he had misrepresented the company's earnings. He pleaded guilty in 1975 and was sentenced to 18 months in prison for stock-fraud conspiracy and three other counts of fraud. Investors sued Randell in civil court and were awarded $35 million.
Randell also went on to be Chairman and Director of a company called eModel that was alleged to be another scam.
Financial author Andrew Tobias
was a young marketing director at NSMC and wrote a book about his experiences entitled The Funny Money Game.
Cortes Wesley Randell
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 , public. The corporation catered for the youth market and was touted by various Wall Street professionals...
, a young Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
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
Wall Street
Wall Street refers to the financial district of New York City, named after and centered on the eight-block-long street running from Broadway to South Street on the East River in Lower Manhattan. Over time, the term has become a metonym for the financial markets of the United States as a whole, or...
professionals. Through publicity from acquisitions and the late 1960s bull market, the stock rose from its Initial Public Offering price of $6 a share to $140. Several universities, including the Harvard endowment fund, invested in NSMC. After the crash of 1970, and after Randell had cashed out a portion of his shares, several Wall Street professionals were convicted of wrongdoing by the government. Some of these accused were later acquitted, with at least one spending some time in jail. Following an investigation of Randell's role in the stock crash, prosecutors alleged that he had misrepresented the company's earnings. He pleaded guilty in 1975 and was sentenced to 18 months in prison for stock-fraud conspiracy and three other counts of fraud. Investors sued Randell in civil court and were awarded $35 million.
Randell also went on to be Chairman and Director of a company called eModel that was alleged to be another scam.
Financial author Andrew Tobias
Andrew Tobias
Andrew Tobias is an American journalist, author, and columnist. His main body of work is on investment, but he has also written on politics, insurance, and other topics. Since 1999, he has been the treasurer of the Democratic National Committee.-Biography:Tobias graduated from Harvard College in...
was a young marketing director at NSMC and wrote a book about his experiences entitled The Funny Money Game.