The J. Morton Davis Page

J. Morton Davis is a member of the Board of Directors of Research!America.

Board of Directors / Research!America

"'His professional ethics have been scrutinized since 1989 by the Securities and Exchange Commission, and repeatedly have been criticized by Forbes magazine, the Wall Street Journal, and other leading financial publications,' reported the Orlando Sentinel Tribune (7/31/93). D.H. Blair & Co., Inc., has on five occasions paid $15,000 or more in fines by regulators. According to a 1993 Miami Daily Business Review article, the company was also censured in 1992 by the National Association of Securities Dealers (Village Voice, 1/31/95)." (Mother Jones).

D.H. Blair & Co. / Mother Jones

Davis' son-in-law Lindsay A. Rosenwald was number one in the 2002 edition of Genetic Engineering News' 100 Molecular Millionaires, with $617,421,671. Several directors of ImClone, another company under investigation, made the list as well: Samuel D. Waksal, $122,943,676; Harlan W. Waksal, $98,714,317, and John Mendelsohn, $12,356,531. Mendelsohn is Charles A. LeMaistre's successor as President of the MD Anderson Cancer Center, and a former director of Enron. Gilbert S. Omenn made the list with $18,977,709.

2002 Molecular Millionaires / Genetic Engineering News

Campaign contributions

"The owner of D.H. Blair Investment, J. Morton Davis, and his wife Rosalind, made more than $83,000 in individual contributions in the 1996 election cycle -- including $10,000 to Gingrich's leadership PAC, the Monday Morning PAC. Rosalind Davis gave the Monday Morning PAC $5,000 on Oct. 25, 1996, around the same time that Marianne Gingrich was buying and selling stock underwritten by Davis' husband. According to a list by Mother Jones, J. Morton Davis was also a charter member of GOPAC when it was in Gingrich's control and gave the group $20,000. Recently, Davis successfully lobbied Congress to include a provision in the tax bill benefiting investors who help support the type of companies D.H. Blair Investment often underwrites. The Davis family is no stranger to the campaign finance world. In 1996, D.H. Blair & Co., a brokerage firm partly owned by Davis' children, paid a $100,000 penalty to the Federal Election Commission (FEC), which alleged the company illegally used contributor lists to solicit clients. One of the lists requested from the FEC by D.H. Blair & Co.? Newt Gingrich's." (

D.H. Blair & Co. /

National Association of Securities Dealers Fines

"NASD Rgulation, Inc., today announced that D.H. Blair & Co. Inc., has been fined $2 million, and will repay almost $2.4 million to investors who were overcharged as a result of excessive mark-ups in 16 securities, and of other fraudulent conduct," affecting more than 3,100 retail customers in 43 states. "NASD Regulation also found that D.H. Blair fraudulently increased the price of two of the 16 securities... shortly after trading began without sufficient purchase orders to support those increases. As a result, D.H. Blair created an artificial 'profit' in the securities that allowed the preferred customers of one of the firm's senior managers to benefit by selling their stock back to the firm. Thereafter, D.H. Blair's brokers used the artificial increase to solicit new investors to purchase these securities, without disclosing the circumstances of the price increase." (D.H. Blair And Top Officials To Pay $4.9 Million In Fines And Restitution. NASD Regulation, Aug. 13, 1997.)

D.H. Blair / NASD Regulation 1997

House Ways and Means Committee testimony, 1997

Davis testified to the House Ways and Means Committee on the capital gains rollover proposal that was enacted in the 1998 budget, March 19, 1997.

Ways and Means Committee 1997 / House of Representatives

Venus Exploration Inc.

News release announcing the merger of Venus Exploration and Xplor Corp. Xplor director J. Morton Davis joins the board of Venus.

Venus Exploration News Release 1997

The Dreyfus Funds

"Upon discovering Mr. Schonberg's fraudulent activities related to his Chromatics stock purchases Asensio & Company initiated an investigation of the Dreyfus Funds' other holdings. We received reports on a total of 19 companies that are highly suspicious. Each of these companies is or has been overvalued as a result of stock promotions. We also found two companies where Mr. Schonberg purchased shares in private transactions before he used Dreyfus Funds' money to buy stock in the open market... Mr. Schonberg bought 135,000 shares of Cytoclonal Pharmaceuticals Inc. for the Dreyfus Funds. Kinder Investments L.P., a fund established for the children and grandchildren of J. Morton Davis head of D.H. Blair, controlled 9.0% of Cytoclonal's voting power as of March 19, 1997. Kinder also participated in the private placement for Chromatics. Peter Janssen controlled 8.9% of Cytoclonal and Bruce Meyers controlled 9.0% of the voting rights. Both Mr. Janssen and Mr. Meyers are former employees of D.H. Blair." There were "widespread comments in the investment community that Mr. Schonberg had personally received secret payments in return for buying fraudulent stocks with the Dreyfus Funds." (Dreyfus fund manager engaged in fraudulent activities. Asensio & Co., June 12, 1998.)

Dreyfus Fund / Asensio & Co. 1998

DH Blair & Co. indictment for racketeering

A New York grand jury indicted executives and employees of DH Blair & Co. on 173 counts that the firm "defrauded its own customers, other investors, other brokerage firms and securities regulators from 1989 through 1998. The charges include manipulating the prices of IPOs and engaging in illegal sales tactics, including dodging customers' orders to sell stocks." The executives charged include Chairman Kenton Wood and Vice Chairmen Alan Stahler and Kalman Renov, who are sons-in-law of J. Morton Davis. "J. Morton Davis, who joined Blair in 1961 and bought a majority stake seven years later, was not named in the indictments. Davis gave the retail brokerage arm of the company to his family in 1992, retaining control of the investment banking division, D.H. Blair Investment Banking, which continues to operate today." (D.H. Blair & Co. Indicted for Racketeering. By Michael Brick. Jul 27, 2000.)

DH Blair & Co. /

News Communications Inc.

"In the News Communications case, a clique of company insiders -- including the former head of D.H. Blair & Company, J. Morton Davis, along with bond-market bottom-fisher Wilbur Ross, class-action mega-lawyer Melvyn Weiss and the family of New York publisher Jerry Finkelstein -- has come up with a scheme to help themselves to maybe as much as $12 million of money that the company's outside investors might assume belongs at least partly to them.... From the point of view of the insiders, the terms are really quite brilliant. Unable, it would appear, to find any bond shop craven or shameless enough to underwrite a placement of notes to buy up the outsiders (what assets could collateralize the dreck, anyway?), the insiders simply formed themselves into a group dominated by the aforementioned Mr. Davis -- a group large enough to command 50.1 percent outright control of the voting rights in NCOM's stock. The insiders then announced that they intend to set up a separate shell company to be called Newco, headed by Jerry's other son (and Andy's brother), Jimmy Finkelstein.... In short, all that's really happening here is that the outsiders are being forced to sell to the insiders, who are paying $1.47 million to buy them out. Where will the money come from? Why, from News Communications' own balance sheet, where else! Jimmy Finkelstein will pony up $310,000 from his own pocket (or that of a rich and aging relative -- and we know who that will be). As for the $1.16 million that remains to be covered, well, there's the aforementioned $387,000 of News Communications' remaining cash, which brings us down to $773,000 -- all of which can be covered simply by selling the company's receivables to a factoring company." (Going-Private-Itis: Ross, Finkelstein Buy Papers Cheap. By Christopher Byron. The New York Observer June 25, 2001.)

Byron / New York Observer 2001

News Communications, Inc., also publishes The Hill, a free weekly that competes with Roll Call in reporting Congressional news. Meanwhile, "some of the chain's New York papers have taken heat for blatant editorializing in favor of certain Democratic candidates, including Andy Stein, [Chairman] Jerry Finkelstein's son. 'Seems to me that this is an enterprise that's become a play toy for people, none of whom have demonstrated a legitimate interest in journalism,' says Carl Bernstein, the Watergate reporter who was briefly on the board of News Communications in 1996." (Over the Hill? Adrianne Appel and Madeline Gaughran. Columbia Journalism Review 2001 May-Jun.)

Appel & Gaughran / Columbia Journalism Review

D.H. Blair Venture Capital Summer Associate Program

Offered to graduates of Harvard Medical School, Harvard University, or MIT. Application requires answering the question, "Describe an ethical dilemma you confronted. How did you resolve the situation? (500 word maximum)."

D.H. Blair Venture Capital Summer Associate Program / UCSF School of Medicine

Interneuron and Fenphen

MIT professor Richard Wurtman and J. Morton Davis were founders of Interneuron, the company that licensed the diet drug dexfenfluramine (Redux) from the French pharmaceutical firm Servier Laboratories. Fenphen was later taken off the market for causing heart valve damage. Davis has owned up to a third of the company through D.H. Blair Investment Banking, and Davis and/or another son-in-law are on the Board of Directors.

Fen Phen Class Action Litigation Website / Leflaw (Lawrence E. Feldman & Associates)

"In September of 1995, JoAnn Manson and her colleagues at the Harvard Medical School issued a press release regarding the results of a study of the health risks associated with being fat. The press release claimed that the data the authors had collected from the Nurses Health Study provided compelling evidence for the proposition that 'even mild to moderate overweight is associated with a substantial increase of premature death.' This claim drew an enormous amount of attention. Indeed over the next five years, the Nurses Health Study became the most commonly cited piece of evidence in the mass media for the claim that fat kills. The most charitable way of characterizing this statement is that it was a gross distortion of the data the study had collected. A more accurate characterization would be that it was a lie. In fact, Manson's study had found no statistically significant increased risk of mortality associated with (let alone caused by) mild to moderate obesity, as she herself later admitted when pressed on the point....

"In one of those shocking coincidences that tend to pop up all the time in the world of obesity research, JoAnn Manson turned out to be a paid consultant to Interneuron Pharmaceuticals, the company that developed and patented dexfenfluramine. The failure to note this little detail is par for the course when it comes to the American media's eagerness to reprint the propaganda of the diet industry. At the time that dexfenfluramine and its cousin Fen-Phen were being approved, MIT professor Richard Wurtman was quoted even more extensively than Manson on the wonderful fat-free vistas these drugs were opening up, without it ever being noted that he was a founder and major stockholder in Interveuron Pharmaceuticals itself...." (The diet industry's dangerous lies, by Paul Campos. The Rocky Mountain News 2002 May 7.)

Campos / Rocky Mountain News 2002

The Nurses Health Study at the Harvard School of Public Health (JoAnn Manson, Walter C. Willett, Meir Stampfer). Willett is an NIH fat cat who gets millions for these studies of diet and disease risk.

Nurses Health Study / Harvard School of Public Health

American Commercial Delegation to Sichuan, China

"The American company, ICES (International Commercial Exchange System), signed an agreement Monday with the Chengdu Technological Properties Exchange to entrust the latter with purchasing US$400 million worth of stockpiled commodities from western China.... The seven-member American commercial delegation is led by Lester L. Wolff, former speaker of the US House of Representatives and now president of the International Investment Advisory Panel of Pacific Development Group. Members of the delegation include Henry Kauftheil, president and CEO of ICES, J. Morton Davis, president of Wall Street Investment Bank Group, and Percy Tsao, chairman of Pacific Development Group." (People's Daily, Jan. 16, 2001.)

Commercial Delegation / People's Daily 2001

There is a possible family connection to the Laskers as well: Albert Davis Lasker's mother's name was Davis.

The Genta Pump-and-Dump

How Lindsey Rosenwald, Ray Warrell and the rest of the criminal clique defrauded investors via an illegal pump & dump scheme. By Dirk M. Raat, The Netherlands.

The Official Genta Fraud Page /


cast 08-11-05