Well AL, thanks for telling me its the right Allen Wolfson. Usually it takes days to confirm.
nasdr.com
The next two companies, Tamarisk and World Financial, have a number of
common factors. Each has its principal place of business in the United Kingdom,
and the Secretary of Tamarisk is the President of World Financial. (Ex. C16, at
62.) Also, Alan Wolfson set up their accounts at Canaccord. (Ex. C16, at 62, 84.)
Mr. Wolfson was a stock promoter who, in October 1996, was charged jointly
with Mr. Chapman by the Securities and Exchange Commission in an
administrative proceeding with violating the securities laws. (Tr. 145-46; Ex.
C18.)
The final account that lent money to Trigon is Lexington, which has its principal
place of business in the Isle of Man. The account documentation shows that Mr.
Chapman was designated to receive the account statements and that he had trading
authority in the account. (Ex. C16, at 146.)
A Field Supervisor with NASDR testified that he gathered the foregoing
information about the persons lending money to Trigon because NASDR staff had
detected an overlap between the securities Dambakly was trading at Paragon and
the securities listed on the account statements for four account holders at
Canaccord. (Tr. 115-16.) Many of the securities those companies invested in were
securities that Dambakly and his brokers were trading at Paragon. Moreover, the
NASDR staff learned that Dambakly and Paragon had entered into an
arrangement with Cyber America, a company Mr. Wolfson was promoting. (Tr.
146, 237-38.) However, no direct evidence of wrongdoing was uncovered in this
portion of the investigation. (Tr. 116.)
In or about October 1996, the NASD requested Dambakly to supply information
about, among other matters, any private securities transactions he had engaged in
since January 1995. (Ex. C5.) Mr. Argenziano reviewed Dambakly?s response
before it went to the NASD, at which point he claims that he discovered that
Dambakly had borrowed money from non-family members to finance the
operations of the 120 Wall Street branch office.5 Mr. Argenziano testified that as
a result of this discovery he called Dambakly into his office for questioning. When
Dambakly told Mr. Argenziano about the four promissory notes, Mr. Argenziano
terminated the OSJ Agreement and closed the 120 Wall Street office on
November 11, 1996. (Tr. 33-34; Ex. C12, at 1.)
Dambakly partially disputes Mr. Argenziano?s testimony. Dambakly contends that
he informed officials at Paragon about his loans right from the start. Dambakly
also claims that at the time he signed the OSJ Agreement he told Alex
Cherepakhov, the manager at Paragon, about the loans. (Tr. 144, 237.)
Nevertheless, Dambakly concedes that he did not notify Paragon about his
participation in the issuance of the four Trigon promissory notes, the identity of
the lenders, or his use of the loan proceeds to pay the operating expenses of the
120 Wall Street Office. (Tr. 149.)
The Hearing Panel finds that Dambakly did not disclose the loans or his receipt of
the loan proceeds to Paragon before he was questioned in November 1996.
IV. Conclusions of Law |
