Game maker director implicated in SEC probe

Tuesday, Sept. 3, 2002 | 11:09 a.m.

AUSTIN, Texas -- Multimedia Games Inc. today said a former director it didn't name was "implicated" in a federal investigation into alleged manipulation of its stock and that of three other companies from 1996 and 1997.

No current executives of the maker of electronic games for Indian casinos were being investigated "as far as we know," Chairman and Chief Executive Gordon Graves said.

Six men were arrested last week in the case, including two former principals of Walsh Manning Securities LLC and one ex-officer of Stratton Oakmont Inc. Austin-based Multimedia Games is obtaining copies of the indictments, reviewing its involvement with the individuals and firms, and will cooperate with the investigation, it said.

The other companies whose shares were manipulated were Brake Headquarters USA Inc., American HealthChoice Inc. and Jenna Lane Inc., federal authorities in New York said in the indictment.

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