Penson under investigation Over Possible Violation

Penson under investigation Over Possible Violations Of Securities Laws


> Penson Worldwide Inc Under Investor Investigation Over Possible Violations Of Securities Laws

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After PNSN shares fell almost 50% within days an investigation on behalf of investors in shares of Penson Worldwide, Inc. (NASDAQ NSN) over possible violations of Federal Securities Laws was announced.

The investigation by a law firm concerns on whether the Penson Worldwide, Inc. or others have violated federal securities laws by issuing false and misleading statements to the investing public.

Penson Worldwide’s 12months Total Revenue decreased from $404.80million in 2007 to $310.62million in 2010. Its Net Income fell from $26.83million in 2007 to a Net Loss of $19.85million in 2010.

Shares of Penson Worldwide, Inc. (NASDAQ NSN) fell from as high as $31.50 during 2007 to $4.34 in 2009 and $4.61 during September 2010.

During the first months of 2011 PNSN shares reached over $7 per share.

Then on May 9, 2011 Penson Worldwide, Inc filed its quarterly report with the U.S. Securities and Exchange Commission. In the report Penson Worldwide, Inc disclosed, among other things, that: “With respect to the Nonaccrual Receivables, at March 31, 2011, […] approximately $42.6 million were collateralized by bonds issued by the Retama Development Corporation (“RDC&rdquo and certain other interests in the horse racing track and real estate project […] financed by the RDC’s bonds.
In each case these are owned by customers and pledged to the Company and/or its affiliates.

Certain related parties to the Company own approximately $14.7 million of RDC bonds that are pledged to the Company and/or its affiliates […].”

Then on May 12, 2011 PNSN stock fell to $2.74 per share after Penson Worldwide, Inc announced that on the same day Mr. Thomas R. Johnson delivered notice of his immediate resignation as a member of the Board of Directors of Penson Worldwide, Inc.
Penson Worldwide, Inc disclosed that “based on Mr. Johnson’s position as chief executive officer of Call Now, Inc, a holder of a portion of the Retama related collateral, both Mr. Johnson and the Company felt it appropriate for him to resign his position at this time.” Philip A. Pendergraft, Chief Executive Officer of Penson Worldwide, Inc said in the May 12 announcement that they “believe the activity of the Company’s stock related to the Retama related collateral is unwarranted.” And that they hope this news release will aid in putting this issue to rest”.

Shares of Penson Worldwide, Inc. (Public, NASDAQ NSN) closed on Friday May 13, 2011 at $3.34 per share.
Shareholders Foundation, Inc.
www.ShareholdersFoundation.com

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