The corporation catered to the youth market and was touted by various Wall Street professionals.
After the crash of 1970, and after Randell had cashed out a portion of his shares, several Wall Street professionals were convicted of wrongdoing by the government.
Following an investigation into Randell's role in the stock crash, prosecutors alleged that he had misrepresented the company's earnings.
He pleaded guilty in 1975 and was sentenced to 18 months in prison for stock-fraud conspiracy and three other counts of fraud.
[1] Financial author Andrew Tobias was a marketing director at NSMC and wrote a book about his experiences entitled The Funny Money Game.