Porker, those buyins were Canuck, not moi. You and your crook friends are toast, the above market buyin shist is just about done:
"Bear Stearns Reaches Settlement In Clearing-House Fraud Case
Dow Jones Newswires
NEW YORK -- Federal regulators and prosecutors Thursday reached a
long-awaited settlement with Bear Stearns Cos. over the firm's role in
clearing, or processing trades, for the now-defunct A.R. Baron & Co.,
which was accused of defrauding investors.
Bear Stearns said it will pay a total of about $38 million in the accords
without admitting or denying wrongdoing, and that Richard Harriton will
step down as its longtime clearing chief.
The Securities and Exchange Commission on Thursday charged Mr.
Harriton with securities-law violations in the Baron matter -- charges that
people familiar with the matter say Mr. Harriton plans to fight.
Bear Stearns said Mr. Harriton will be
replaced by his deputy, Richard Lindsey, a
former SEC official, and Michael Minikes, the
firm's treasurer.
Clearing firms execute trades, maintain client
records and send out confirmations of trades
of small brokerage firms, or "introducing
brokers." The business is one of the most
lucrative on Wall Street, with profit margins
running as high as 25%. The tasks are largely
administrative; costly compliance duties, such
as investigating customer complaints,
traditionally have been left to the introducing
firms.
The settlements follow investigations by the
SEC and New York officials over the role of
Bear Stearns in processing trades for the
now-defunct A.R. Baron. Investors have
alleged in lawsuits and arbitration proceedings that Bear Stearns knew or
should have known about Baron's investment frauds but looked the other
way, enabling Baron to continue.
A. R. Baron and 13 of its former executives and employees pleaded guilty
to or have been convicted of criminal charges. A.R. Baron was previously
charged by the Manhattan District Attorney's office with defrauding
investors of $75 million, in part by conducting unauthorized trading.
Regulators shut down the firm in 1996.
Bear Stearns neither admitted nor denied any wrongdoing in settling the
case. The company will pay a $5 million fine to the SEC and $30 million to
a restitution fund for A.R. Baron investors. It also agreed to pay $3.5
million to New York state and city agencies for investigation costs.
The company said it doesn't expect the settlements to affect its financial
results." |
