2 Area Stocks Involved in Case Against N.Y. Firm

The stocks of Ventura Entertainment Group Ltd. and its Producers Entertainment Group Ltd. unit are among those involved in a fraud case brought against a New York stock brokerage firm by the federal Securities and Exchange Commission.

The SEC recently accused the firm, Stratton Oakmont Inc. of Lake Success, and five present or former employees of making misrepresentations and-or omitting to disclose material information to investors about several stocks, including Ventura Entertainment and Producers Entertainment.

Specifically, Stratton Oakmont employees, using a script, told investors during periods in 1990 and 1991 that the stocks of Ventura Entertainment and Producers Entertainment would double in six or 12 months, the SEC alleged. The agency also alleged that the script made comments about Ventura Entertainment’s financial position that were misleading.

Ventura Entertainment, a Burbank-based maker of television commercials and other programming, owns about 54% of Producers Entertainment, a Beverly Hills-based producer of TV shows and films that recently changed its name from Ventura Motion Picture Group.

The SEC also alleged that the defendants earned at least $11 million by manipulating the stock of Nova Capital Inc. at various periods between 1989 and 1991.

Stratton Oakmont said it will defend itself against the charges, which it called “a rehash of state allegations.” Ventura Entertainment declined comment on the case.