FAHN - part 3
12/15/98: 10/01/96 PENDING SEC ACTION
THE SECURITIES AND EXCHANGE COMMISSION FILED A COMPLAINT AGIANST FIRM ALLEGING
THAT FIRM AND A CERTAIN INDIVIDUAL FAILED TO SUPERVISE A REGISTERED
REPRESENTATIVE FORMERLY ASSOCIATED WITH THE JENKINTOWN, PENNSYLVANIA BRANCH OF
A CERTAIN COMPANY WHICH IS A DIVISION OF FAHNESTOCK & CO. SPECIFICALLY, THE
ORDER ALLEGES THAT FIRM AND A CERTAIN INDIVIDUAL, FAILED REASONABLY TO
SUPERVISE A CERTAIN INDIVIDUAL IN CONNECTION WITH HIS MISAPPROPRIATION OF
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$262,000 FROM THE BROKERAGE ACCOUNTS OF TWO OF THE COMPANIES' CUSTOMERS. [FOR
FURTHER INFORMATION SEE COMMONWEALTH OF PENNSYLVANIA V. WENDELL JEFFREY LEE,
DOCKET NOS. 1319-95 AND 1478-95, COURT OF COMMON PLEAS, MONTGOMERY COUNTY,
PENNSYLVANIA; SEC V. WENDELL JEFFREY LEE, 2:95-CV-6088; SEE ALSO EXCHANGE ACT
RELEASE NO. 14659, SEPT. 28, 1995]
12/15/98: 9/17/96 NASD ARBITRATION
SUBJECT OF AN NASD ARBITRATION. THE ARBITRATION INVOLVED A PUBLIC CUSTOMER
AND WAS FILED BECAUSE OF THE FOLLOWING DISPUTE(S): ACCOUNT RELATED - FAILURE
TO SUPERVISE; EXECUTIONS-EXECUTION PRICE; ACCOUNT RELATED-NEGLIGENCE;
CHURNING. THE AWARD INCLUDED: ACTUAL/COMPENSATORY DAMAGES, AMOUNT ASKED BY
CUSTOMER-$41,500.00; INTEREST, AMOUNT ASKED BY CUSTOMER-$0.00; ATTORNEY'S
FEES, AMOUNT ASKED BY CUSTOMER-$0.00. RELIEF REQUESTS HAVE BEEN DENIED IN
FULL. [NASD ARBITRATION CASE NO. 95-05384]
12/15/98: 4/17/96 PENDING NASD COMPLAINT
THE NASD FILED A COMPALINT AGAINST FAHNESTOCK & CO., INC. ALLEGING VIOLATONS
OF SOES RULE c)2(E) AND ARTICLE III, SECTION 1 OF THE ASSOCIATION'S RULES OF
FAIR PRACTICE IN THAT THE FIRM ENTERED ORDERS ON AN AGENCY BASIS INTO SOES FOR
SECURITIES FOR WHICH THE FIRM WAS A REGISTERED MARKET MAKER. THIS COMPLAINT
WAS AMENDED ON 10/24/96 ALLEGING THAT THE FIRM VIOLATED MARKET PLACE RULE 4730
(B)(5) OF THE RULES OF FAIR PRACITICE FOR THE THE SMALL ORDER EXECUTION
SYSTEM. [NASD COMPLAINT NO. CMS950117]
12/15/98: 4/02/96 NASD ARBITRATION
SUBJECT OF AN NASD ARBITRATION AWARD. THE ARBITRATION INVOLVED A PUBLIC
CUSTOMER AND WAS FILED BECAUSE OF THE FOLLOWING DISPUTE(S): SUITABILITY. THE
AWARD INCLUDED: ACTUAL/COMPENSATORY DAMAGES, AMOUNT ASKED BY
CUSTOMER-$5,459.00, AMOUNT AWARDED TO CUSTOMER-$3,000.00 JOINTLY AND
SEVERALLY; INTEREST, AMOUNT ASKED BY CUSTOMER-$0.00, AMOUNT AWARDED TO
CUSTOMER-$0.00 JOINTLY AND SEVERALLY; OTHER MONETARY RELIEF, AMOUNT ASKED BY
CUSTOMER-$0.00, AMOUNT AWARDED TO CUSTOMER-$150.00 JOINTLY AND SEVERALLY.
[NASD ARBITRATION CASE NO. 96-00262]
12/15/98: 4/01/96 NASD ARBITRATION
SUBJECT OF AN NASD ARBITRATION AWARD. THE ARBITRATION INVOLVED A PUBLIC
CUSTOMER AND WAS FILED BECAUSE OF THE FOLLOWING DISPUTE(S): BRCH OF FIDUCIARY
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DT; SUITABILITY; ACCOUNT RELATED - FAILURE TO SUPERVISE; CHURNING. THE AWARD
INCLUDED: ACTUAL/COMPENSATORY DAMAGES, AMOUNT ASKED BY CUSTOMER-$80,000.00,
AMOUNT AWARDED TO CUSTOMER-$18,500.00 JOINTLY AND SEVERALLY. [NASD
ARBITRATION CASE NO. 96-01259]
12/15/98: 2/27/96 NASD ARBITRATION
SUBJECT OF AN NASD ARBITRATION. THE ARBITRATION INVOLVED A PUBLIC CUSTOMER
AND WAS FILED BECAUSE OF THE FOLLOWING DISPUTE(S): ACCOUNT RELATED-OTHER. THE
AWARD INCLUDED: ACTUAL/COMPENSATORY DAMAGES, AMOUNT ASKED BY
CUSTOMER-$425,387.50; ATTORNEY'S FEES, AMOUNT ASKED BY CUSTOMER-$0.00; OTHER
COSTS, AMOUNT ASKED BY CUSTOMER-$0.00; OTHER MONETARY RELIEF, AMOUNT ASKED BY
CUSTOMER-$0.00. RELIEF REQUESTS HAVE BEEN DENIED IN FULL. [NASD ARBITRATION
CASE NO. 94-00191]
12/15/98: 11/27/95 NASD ARBITRATION
SUBJECT OF AN NASD ARBITRATION. THE ARBITRATION INVOLVED A PUBLIC CUSTOMER
AND WAS FILED BECAUSE OF THE FOLLOWING DISPUTE(S): MISREPRESENTATION;
CHURNING; SUITABILITY; OMISSION OF FACTS. THE AWARD INCLUDED:
ACTUAL/COMPENSATORY DAMAGES, AMOUNT ASKED BY CUSTOMER-$53,535.15. RELIEF
REQUESTS HAVE BEEN DENIED IN FULL. [NASD ARBITRATION CASE NO. 94-03243]
12/15/98: 9/13/95 NASD ARBITRATION
SUBJECT OF AN NASD ARBITRATION. THE ARBITRATION INVOLVED A PUBLIC CUSTOMER
AND WAS FILED BECAUSE OF THE FOLLOWING DISPUTE(S): BRCH OF FIDUCIARY DT;
ACCOUNT RELATED - FAILURE TO SUPERVISE. THE AWARD INCLUDED:
ACTUAL/COMPENSATORY DAMAGES, AMOUNT ASKED BY CUSTOMER-$110,000.00; INTEREST,
AMOUNT ASKED BY CUSTOMER-$0.00; OTHER COSTS, AMOUNT ASKED BY CUSTOMER-$0.00.
RELIEF REQUESTS HAVE BEEN DENIED IN FULL. [NASD ARBITRATION CASE NO.
94-02200]
12/15/98: 8/25/95 NASD ARBITRATION
SUBJECT OF AN NASD ARBITRATION AWARD. THE ARBITRATION INVOLVED A PUBLIC
CUSTOMER AND WAS FILED BECAUSE OF THE FOLLOWING DISPUTE(S): SUITABILITY;
MISREPRESENTATION; OMISSION OF FACTS; BRCH OF FIDUCIARY DT. THE AWARD
INCLUDED: ACTUAL/COMPENSATORY DAMAGES, AMOUNT ASKED BY CUSTOMER-$0.00, AMOUNT
AWARDED TO CUSTOMER-$20,000.00 JOINTLY AND SEVERALLY; OTHER MONETARY RELIEF,
AMOUNT ASKED BY CUSTOMER-$0.00, AMOUNT AWARDED TO CUSTOMER-$0.00 JOINTLY AND
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SEVERALLY; OTHER COSTS, AMOUNT ASKED BY CUSTOMER-$0.00, AMOUNT AWARDED TO
CUSTOMER-$0.00 JOINTLY AND SEVERALLY; ATTORNEY'S FEES, AMOUNT ASKED BY
CUSTOMER-$0.00, AMOUNT AWARDED TO CUSTOMER-$0.00 JOINTLY AND SEVERALLY. [NASD
ARBITRATION CASE NO. 93-01136]
12/15/98: 7/19/95 NASD ARBITRATION
SUBJECT OF AN NASD ARBITRATION. THE ARBITRATION INVOLVED A PUBLIC CUSTOMER
AND WAS FILED BECAUSE OF THE FOLLOWING DISPUTE(S): ACCOUNT
RELATED-ERRORS-CHARGES. THE AWARD INCLUDED: ACTUAL/COMPENSATORY DAMAGES,
AMOUNT ASKED BY CUSTOMER-$16,260.00. RELIEF REQUESTS HAVE BEEN DENIED IN
FULL. [NASD ARBITRATION CASE NO. 93-01556]
12/15/98: 5/18/95 NASD ARBITRATION
SUBJECT OF AN NASD ARBITRATION AWARD. THE ARBITRATION INVOLVED A PUBLIC
CUSTOMER AND WAS FILED BECAUSE OF THE FOLLOWING DISPUTE(S):
MISREPRESENTATION; ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-BREACH OF
CONTRACT; BRCH OF FIDUCIARY DT. THE AWARD INCLUDED: ACTUAL/COMPENSATORY
DAMAGES, AMOUNT ASKED BY CUSTOMER-$16,500.00, AMOUNT AWARDED TO
CUSTOMER-$16,500.00 JOINTLY AND SEVERALLY; ACTUAL/COMPENSATORY DAMAGES,
AMOUNT ASKED BY CUSTOMER-$87,160.89, AMOUNT AWARDED TO CUSTOMER-$30,250.00
JOINTLY AND SEVERALLY; ACTUAL/COMPENSATORY DAMAGES, AMOUNT ASKED BY
CUSTOMER-$0.00, AMOUNT AWARDED TO CUSTOMER-$0.00 JOINTLY AND SEVERALLY;
PUNITIVE/EXEMPLARY DAMAGES, AMOUNT ASKED BY CUSTOMER-$0.00, AMOUNT AWARDED TO
CUSTOMER-$0.00 JOINTLY AND SEVERALLY; OTHER COSTS, AMOUNT ASKED BY
CUSTOMER-$0.00, AMOUNT AWARDED TO CUSTOMER-$950.00 JOINTLY AND SEVERALLY;
ATTORNEY'S FEES, AMOUNT ASKED BY CUSTOMER-$0.00, AMOUNT AWARDED TO
CUSTOMER-$0.00 JOINTLY AND SEVERALLY; OTHER MONETARY RELIEF, AMOUNT ASKED BY
CUSTOMER-$0.00, AMOUNT AWARDED TO CUSTOMER-$0.00 JOINTLY AND SEVERALLY. [NASD
ARBITRATION CASE NO. 94-00927]
12/15/98: 4/10/95 NASD ARBITRATION
SUBJECT OF AN NASD ARBITRATION AWARD. THE ARBITRATION INVOLVED A PUBLIC
CUSTOMER AND WAS FILED BECAUSE OF THE FOLLOWING DISPUTE(S):
MISREPRESENTATION; ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT
RELATED-NEGLIGENCE; OTHER. THE AWARD INCLUDED: ACTUAL/COMPENSATORY DAMAGES,
AMOUNT ASKED BY CUSTOMER-$360,000.00, AMOUNT AWARDED TO CUSTOMER-$36,000.00
JOINTLY AND SEVERALLY; INTEREST, AMOUNT ASKED BY CUSTOMER-$0.00, AMOUNT
AWARDED TO CUSTOMER-$0.00 JOINTLY AND SEVERALLY. [NASD ARBITRATION CASE NO.
93-04048]
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12/15/98: 3/27/95 NASD ARBITRATION
SUBJECT OF AN NASD ARBITRATION. THE ARBITRATION INVOLVED A PUBLIC CUSTOMER
AND WAS FILED BECAUSE OF THE FOLLOWING DISPUTE(S): EXECUTIONS-FAILURE TO
EXECUTE; BRCH OF FIDUCIARY DT. THE AWARD INCLUDED: ACTUAL/COMPENSATORY
DAMAGES, AMOUNT ASKED BY CUSTOMER-$9,000.00. RELIEF REQUESTS HAVE BEEN
DENIED IN FULL. [NASD ARBITRATION CASE NO. 95-00856]
12/15/98: 2/27/95 NASD ARBITRATION
SUBJECT OF AN NASD ARBITRATION. THE ARBITRATION INVOLVED A PUBLIC CUSTOMER
AND WAS FILED BECAUSE OF THE FOLLOWING DISPUTE(S): MISREPRESENTATION; ACCOUNT
RELATED-NEGLIGENCE; ACCOUNT RELATED-BREACH OF CONTRACT. THE AWARD INCLUDED:
ACTUAL/COMPENSATORY DAMAGES, AMOUNT ASKED BY CUSTOMER-$292,533.00; ATTORNEY'S
FEES, AMOUNT ASKED BY CUSTOMER-$0.00; INTEREST, AMOUNT ASKED BY
CUSTOMER-$0.00; PUNITIVE/EXEMPLARY DAMAGES, AMOUNT ASKED BY CUSTOMER-$0.00;
TREBLE DAMAGES, AMOUNT ASKED BY CUSTOMER-$897,599.00. RELIEF REQUESTS HAVE
BEEN DENIED IN FULL. [NASD ARBITRATION CASE NO. 93-04686]
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