Misgivings Spoil Plans of Start-Up

[engine]

Three years ago, at a news conference at Tavern on the Green restaurant that featured a free-flowing bar, former President Bill Clinton helped introduce a new Internet search engine, Accoona, which was said to be powered by innovative artificial intelligence technology.

On Monday, Maxim Group, the underwriter, pulled out of the offering, though it did not cite any specific reason for its change of heart. “After completing our due diligence review, we have chosen to disassociate ourselves with the company,” said Edward L. Rose, the firm’s vice chairman and general counsel.

Misgivings Spoil Plans of Start-Up [nytimes.com]

[walkman]

"The $80.5 million initial public offering, managed by a little-known underwriter, moved forward despite the long history of Mr. Rousso, who has had several brushes with the law. He pleaded guilty to stock fraud charges in the United States in 1998 and was convicted of stock fraud in France in 1999. He has settled several suits brought by investors who claimed stock losses."

Ooops..someone didn't do their DD before signing up for the deal.