By Chris Lane
By Jeff Balke
By Aaron Reiss
By Angelica Leicht
By Dianna Wray
By Aaron Reiss
By Camilo Smith
By Craig Malisow
Those blue-collar roots had blossomed into a new beginning of the great American dream. Sure, Gaspard remained the family man supporting a wife and three children in the house behind the high school, but for those who met him by logging on to the Internet, he was the WallStreet Prophet, a fledgling financial wizard waiting to guide them through to the great riches of the stock markets. Away from the computer, he might still be the self-taught guy who first discovered the world of brokers while watching TV business shows. On-line, this savvy sage was now promoting himself as a 14-year market veteran -- a man whose system had notched an 85 percent trading success rate. He was the stock seer whose year-old WallStreet Prophet Web site was now grossing an estimated $35,000 monthly from the growing roster of disciples.
Even pressing his wife into clerical duties, he could hardly keep up with the demand. Gaspard didn't give it a second thought on that recent day when he answered another ringing telephone. But the usual call turned unusual with the first words spoken:
Gaspard didn't. But this new Prophet sensed instantly that he had a problem -- a very big one.
Years of hard labor as a residential contractor had convinced Gaspard that there had to be a better way to make an honest living. He had learned the trades from his father, who ran a roofing company for 51 years.
Gaspard grew up in Galveston County and attended the island's Austin Middle School before finishing at nearby Santa Fe High School. He married early and didn't have the financial resources to follow his classmates into college.
"I had to support a family," he says. "I couldn't afford to [continue my education]." He didn't specialize in any one construction specialty. "I'm a jack-of-all-trades." He began thinking early about leaving the blue-collar world of hammers, nails, plumbing and paint, but it took him ten years to finally discover a potential escape route.
"I wanted to get out of the contracting business because I had been in it for so long, but it could have been anything at all that I got into."
Various relatives -- his aunts and uncles -- had dabbled in the strange world of stocks. Gaspard gradually began deciphering the foreign language of the Big Board -- the puts and calls and P/E ratios and the rest. He eased into the market of penny stocks and slowly graduated upward.
His introduction to the Internet about ten years ago escalated that interest. In various chat rooms, the Texas City man talked about his successes. Gaspard says that while others spent years studying how the market works, his education was extraordinarily rapid.
"When the Internet took off, then I figured things out. Once I figured things out, it made me happy," he says. "It is all a matter of interpreting the technical charts the right way."
Gaspard, along with the great majority of investors back then, took the giddy ride upward in the market boom of a few years ago. He won't say how successful those investments were, although he claims that he has made "a lot of money."
By January 2000 he had a computerized system of tracking and predicting stock performance. And the WallStreet Prophet (or at least his Internet enterprise bearing that name) was born. Gaspard finally bid farewell to his 24 years as a contractor.
At one point almost 1,000 customers had climbed aboard, paying real money every month for his investment advice. "I never expected it," he says. "Everything was growing so fast, we got so excited."
Word of this new Wall Street wizard spread, and one man was a particularly keen listener. Spencer C. Barasch wasn't interested in making cash -- he wanted to make a case. A tip about this new Internet business came into his office, the Fort Worth district headquarters of the Securities and Exchange Commission, which regulates the securities industry.
Regulators have been scrambling to cover the new world of cyberspace and the explosion of supposed "experts" ready to sell advice on how to make a killing in stocks. "There has been a proliferation of investment-touting services on the Internet," Barasch says.
Government investigators began monitoring the WallStreet Prophet's Web site. They interviewed witnesses and even subpoenaed business records. When SEC attorney Ansley placed the fateful call to Gaspard, they already had compiled considerable evidence on his operations.
While an authentic high-flying WallStreet Prophet might have summoned a sophisticated legal team and boarded the corporate jet to jawbone with the feds, Gaspard went back to his blue-collar roots. He got in his car and drove to Fort Worth for a solo session with the SEC investigators.
Government accusations make it sound as if his greatest expertise were in marketing rather than the market. In Gaspard's mind, he was just applying standard promotional techniques -- just like a home contractor might do -- to the field of high-tech stock advice.