Re: Seaboard Securities phone solicitation
I'm not sure where else to post this.
A few minutes ago I got one of those annoying fast-talking stock pitchmen for a company called Seaboard Securities. He rattled off a bunch of well-known industry names and tried to imply his firm was established and well-known in the industry. He said I could check out their web site at seaboardsec.com, which I did. It has very little information.
He mentioned that Seaboard had uncovered a great company they wanted to tell me about... if I'd answer a few questions. I answered all of them up to how much money I had in the market, saying I don't discuss that on the phone, which he persisted in asking in numerous ways. When I asked about what stock he had in mind he said he'd have a supervisor call me next week.
-----
I note that Seaboard has underwritten three IPOs:
1. BioShield Technologies, Inc. (BSTI) [High 40, Low 1/16, Current 7/16]
2. Global Brands, Inc. (GLBR) [not trading]
3. Visual Data Corporation (VDAT) [High 14.5, Low 1, Current 2]
beta.hoovers.com
-----
But this is what got my attention:
Seaboard Securities, Inc. (CRD #755, Florham Park, New Jersey), Anthony DiGiovanni (CRD #601698, Registered Principal, Florham Park, New Jersey), Joseph Zappala (CRD #475869, Registered Principal, Pilesgrove, New Jersey), David Goldblatt (CRD #1661615, Registered Principal, New York, New York) and John Joseph Plunkett (CRD #2321368, Registered Principal, Brooklyn, New York) submitted Offers of Settlements pursuant to which the firm was censured and fined $150,000, jointly and severally, with Zappala and DiGiovanni. In addition, Zappala was fined $10,000, suspended from association with any NASD member in any capacity for 15 days, and suspended from association with any NASD member in any principal capacity for 30 days. Goldblatt was censured, fined $10,000, and suspended from association with any NASD member in any principal capacity for 45 days. Plunkett was censured, fined $7,500, and suspended from association with any NASD member in any principal capacity for 15 days.
Without admitting or denying the allegations, the respondents consented to the described sanctions and to the entry of findings that the firm, acting through Zappala, failed to adequately establish or maintain certain aspects of a supervisory system reasonably designed to ensure compliance with the securities laws; the respondents failed to hold annual compliance meetings, failed to conduct an annual inspection of all areas of business, failed to establish procedures for the review and endorsement by a registered principal of all transactions, failed to evidence background checks of newly hired registered representatives, and failed to register three of its Offices of Supervisory Jurisdiction in that capacity. The findings also stated that the firm, acting through Zappala, failed to establish, maintain, and enforce adequate written supervisory procedures in certain areas of its business operations, including trading and market making, retail sales, mutual funds, and options, and allowed Plunkett to act as a general securities principal of the firm without being registered as a principal. The NASD also found that the firm, acting through Zappala, failed to register an office as a branch office; failed to file customer complaints received in a timely manner; allowed a registered representative to conduct an institutional securities business at the firm while his securities registration was inactive due to a failure to complete the Regulatory Element of the NASD’s Continuing Education Program in a timely manner; and failed to prioritize its training needs and implement a written training plan for its Firm Element training requirement. The NASD also determined that the firm, acting through DiGiovanni, failed to develop and implement written procedures providing for the supervision of certain options accounts and orders in such accounts; deposited common stock and warrants that traded at a premium in the secondary account in its proprietary trading account in violation of the NASD’s Free-Riding and Withholding Interpretation; and failed to obtain certain required information about the offering to determine that the account did not fall within a prohibited category according to the Free-Riding and Withholding Interpretation. Furthermore, the NASD determined that the firm, acting though DiGiovanni, reported transactions to the Automated Confirmation Transaction ServiceSM (ACTSM) in violation of applicable securities laws and regulations regarding trade reporting and failed to indicate on order tickets whether orders were solicited or unsolicited and whether the order was a limit order or a market order. In addition, Goldblatt allowed an individual to continue to act as a general securities representative for the firm then his registration was inactive due to a failure to timely complete the Regulatory Element of the NASD’s Continuing Education Program.
Zappala’s suspension in all capacities began June 5, 2000, and will conclude at the close of business June 19, 2000; his suspension in a principal capacity began June 5, 2000, and will conclude July 4, 2000. Goldblatt’s suspension will begin July 3, 2000, and will conclude at the close of business August 18, 2000. Plunkett’s suspension began June 5, 2000, and will conclude at the close of business June 19, 2000. (NASD Case #C9B000009)
nasdr.com
- Jeff |
