Attorney General's News Release

July 2, 2007

Missouri victims of dot.com stock sale scheme to receive another $8,750 in restitution in order obtained by Nixon

St. Charles, Mo. — Missourians who lost money in a dot.com stock sale scheme will be receiving another $8,750 in restitution from one of the companies involved, Attorney General Jay Nixon said today. Nixon has obtained a court order requiring Rose Laboratories, of Bend, Ore., to pay the restitution to 12 Missouri consumers. Last November, the Attorney General obtained an order requiring one of the salesmen involved in the scheme to repay $45,000 to consumers, most of whom live in the St. Louis or St. Charles areas.

In May 2005, Nixon filed a lawsuit against Rose Laboratories; AskGT.com, based in Las Vegas; and AskGT.com salesman De Elroy Beeler, claiming they defrauded Missourians who invested in AskGT.com stock. Beeler - who is also known as John Montgomery - phoned Missouri consumers in 2002 and made misrepresentations while attempting to sell shares of stock in AskGT.com. He told them AskGT.com was part of Bidbay, an online auction company when, in fact, the two companies were not affiliated, and also made false claims about how the stock would dramatically gain value.

Prospective investors also were told they would receive free shares from a second company, Rose Laboratories, after they purchased AskGT.com stock. Neither Rose Laboratories nor Beeler were registered to sell securities in Missouri, Nixon said.

Consumers who invested in AskGT.com after being contacted by Beeler complained to Nixon's office that they received either nothing in return or received stock certificates that did not contain a seal, meaning they were not valid. Consumers also complained they did not receive the free shares of Rose Laboratories stock as promised or they received a certificate which was not considered valid. The consumers had invested between $400 and $25,000.

In addition to the restitution order of $8,750, the judgment from the St. Charles County Circuit Court prohibits Rose Laboratories from selling securities in Missouri without being registered under the Missouri Securities Act of 2003. Rose Laboratories is also prohibited from allowing consumers to purchase stock without delivering a valid certificate.

In addition to paying $45,000 in restitution to ten Missouri consumers, Beeler also was banned from advertising or selling investments in Missouri.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818