Newsletter publisher accused of trading scheme.

On September 21, the British Columbia Securities Commission alleged in a notice that Albert Budai, independent publisher of the Buy Low, Sell High investment newsletter, engaged in "scalping"--buying shares in certain public companies, talking them up on his radio show or in his publications, and then selling the shares.

It also alleges he illegally sold $1.4 million worth of shares in a company called StockDepot Information Services Corp. to 49 investors, 25 of whom were from B.C., without registering or filing a prospectus under the provincial securities act.

As The Globe and Mail in Toronto put it, "Stock picker Albert Budai is well known in British Columbia for his mantra 'buy low, sell high.' Yesterday, the newsletter publisher was accused of practising what he preaches to a fault."

Popular radio show host and winner of stock picking competitions

Budai frequently speaks on B.C. radio business shows. He is also currently leading in a stock-picking contest of CBC.ca, where his portfolio has posted a 19.6 percent return as of September 14.

The commission alleges the sales, which took place between December 2001 and January 2004, were based on "misrepresentations, including claims that CanandianOnlineInvestor.com, a company owned by StockDepot, was profitable and had significant revenue."

Budai was unavailable for comment. The BCSC's allegations have not been proven, and a date for a hearing has not been set.