Nothing Mellow At Yellowave

While accusations of fraud fly, the Net startup is hamstrung

For an obscure Internet startup, nothing helps the stock price more than having a famous person on your side. And Yellowave Corp., a year-old Los Angeles incubator, seemed to have struck paydirt back in July when it announced that 3Com Corp. Chief Executive Eric Benhamou had come aboard as chair of its advisory board. The news about Benhamou, well-known as one of the marketing wizards behind the Palm handheld computer, sent Yellowave shares soaring 118% to a high of $24 one week later.

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