MEMBER FIRM: WM. V. FRANKEL & CO., INCORPORATED
BD NUMBER: 1895
NASD Member Firm: WM. V. FRANKEL & CO., INCORPORATED
BD Number: 1895
12/15/98 SUMMARY INFORMATION
12/15/98: 3/13/98 NASD CENSURE AND FINE
ACCPETANCE, WAIVER AND CONSENT; WM. V. FRANKEL & COMPANY, INC. WAS CENSURED
AND FINED $18,000 BY THE NASD. THE NASD ALLEGES THAT THE FOLLOWING ACTIVITY
OCCURRED: FIRM INCORRECTLY DESIGNATED AS LATE TO THE AUTOMATED CONFIRMATION
TRANSACTION SERVICE ("ACT") AND FAILED TO DESIGNATE AS ".T" TO ACT ONE
TRANSACTION IN A NASDAQ MARKET SECURITY, AND FAILED TO DESIGNATE AS LATE TO
ACT ONE TRANSACTION IN A NASDAQ NATIONAL MARKET SECURITY. THIS CONSTITUTES
SEPARATE AND DISTINCT VIOLATIONS OF NASD MARKETPLACE RULE 4632(a). THE FIRM
FAILED TO DESIGNATE AS LATE TO ACT 14 TRANSACTIONS IN OTC EQUITY SECURITIES
WHICH CONSTITUTES SEPARATE AND DISTINCT VIOLATIONS OF NASD MARKETPLACE RULE
6620(a). IN ADDITION, FIRM FAILED TO CONTEMPORANEOUSLY EXECUTE THREE CUSTOMER
LIMIT ORDERS AFTER IT EXECUTED TRANSACTIONS FOR ITS OWN MARKET MAKING ACCOUNT
AT PRICES EQUAL TO OR BETTER THAN EACH SUCH CUSTOMER LIMIT ORDER. THIS
CONSTITUTES A VIOLATION OF NASD CONDUCT RULE 2110 AND IM-2110-2. FIRM EXECUTED
THREE SHORT SALE TRANSACTIONS WITHOUT MAKING AN AFFIRMATIVE DETERMINATION FOR
EACH TRANSACTION WHICH CONSTITUTES SEPARATE AND DISTINCT VIOLATIONS OF NASD
CONDUCT RULE 3370; AND ALSO EXECUTED SEVEN SHORT SALE TRANSACTIONS IN NASDAQ
NATIONAL MARKET SECURITIES AT OR BELOW THE PRECEDING INSIDE BID FOR EACH OF
THE SECURITIES. THIS CONSTITUTES SEPARATE AND DISTINCT VIOLATIONS OF NASD
CONDUCT RULE 3350. FINALLY, FIRM FAILED TO ESTABLISH, MAINTAIN, AND ENFORCE
WRITTEN SUPERVISORY PROCEDURES REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH
THE APPLICABLE SECURITIES LAWS AND REGULATIONS REGARDING TRADE REPORTING,
MARKET-MAKING FUNCTIONS, AND SHORT SALES. THIS CONSTITUTES A VIOLATION OF NASD
CONDUCT RULES 2110 AND 3010***$10,000.00 PAID ON 5/12/98, INVOICE
#98-MS-377*** [NASD COMPLAINT NO. CMS980024 AWC]hk
12/15/98: 1/22/97 PENDING NASD COMPLAINT
THE NASD FILED A COMPLAINT ON JANUARY 22, 1997 AGAINST FIRM ALLEGING
VIOLATIONS OF MARKETPLACE RULE 4613(e). [PENDING NASD COMPLAINT NO. CMS960203]
ba
12/15/98: 4/10/96 NASD FINE
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ACCEPTANCE, WAIVER AND CONSENT; WM. V. FRANKEL & CO. WAS FINED $500 BY THE
MARKET SURVEILLANCE AND THE NATIONAL BUSINESS CONDUCT COMMITTEES. THE NASD
ALLEGED VIOLATIONS OF ARTICLE III, SECTION 41 OF THE ASSOCIATION'S RULES OF
FAIR PRACTICE IN THAT MEMBER FIRM SUBMITTED AN INACCURATE FORM NS-1 REPORT OF
ITS SHORT INTEREST AS OF SETTLEMENT DATE DECEMBER 15, 1994. THE AWC WAS FILED
ON DECEMBER 18, 1995 AND BECAME FINAL ON APRIL 10, 1996.***$500.00 PAID ON
5/6/96, INVOICE #96-MS-341***[NASD COMPLAINT NO. CMS950215 AWC]hk
12/15/98: 1/29/93 NASD FINE
ACCEPTANCE, WAIVER AND CONSENT; MEMBER FIRM WAS FINED $250 BY THE NASD. THE
NASD ALLEGED VIOLATIONS OF ARTICLE III, SECTION 1 OF THE ASSOCIATION'S RULES
OF FAIR PRACTICE IN THAT THE FOLLOWING MEMBER FIRM'S UPDATE QUOTATIONS IN THE
BULLETIN BOARD SYSTEM OUTSIDE THE ALLOWABLE TIME FOR UPDATING FOREIGN OR ADR
SECURITIES ON THE BULLETIN BOARD. THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT
WAS FILED ON OCTOBER 20, 1992 AND WAS ACCEPTED BY THE MARKET SURVEILLANCE
COMMITTEE ON NOVEMBER 23, 1992 AND BY THE NATIONAL CONDUCT BUSINESS COMMITTEE
ON JANUARY 29, 1993.***$250.00 PAID ON 2/17/93 INVOICE #93-MS-123 ***[NASD
COMPLAINT NO. CMS920102-AWC]hk
12/15/98: 6/17/91 NASD CENSURE AND FINE
ACCEPTANCE, WAIVER AND CONSENT; WM V. FRANKEL & CO. INCORPORATED WAS CENSURED
$5,000, JOINTLY AND SEVERALLY, BY THE NASD ($2,500 JOINTLY AND SEVERALLY WITH
A CERTAIN INDIVIDUAL, AND $2,500 JOINTLY AND SEVERALLY WITH A CERTAIN
INDIVIDUAL). THE NASD ALLEGED VIOLATIONS OF ARTICLE III, SECTION 1 OF THE
RULES OF FAIR PRACTICE, IN THAT THE FIRM, ACTING THROUGH CERTAIN INDIVIDUALS,
CONDUCTED A SECURITIES BUSINESS WHILE FAILING TO MAINTAIN ITS NET CAPITAL.***
$2,500 JOINTLY AND SEVERALLY 1 PAID ON 7/23/91 INVOICE #91-10-761*** $2,500
JOINTLY AND SEVERALLY 2 PAID ON 7/23/91 INVOICE #91-10-762 ***[NASD COMPLAINT
NO. C10910032]hk
12/15/98: 2/06/90 SEC CENSURE
OFFER OF SETTLEMENT; CENSURED BY THE SECURITIES AND EXCHANGE COMMISSION AND
ORDERED TO COMPLY WITH AN UNDERTAKING TO ESTABLISH WRITTEN PROCEDURES TO
ENSURE FUTURE COMPLIANCE WITH SEC RULE 15c2-11 AND BARRED FROM ACTING AS A
MARKET MAKER IN NEW SECURITIES FOR 45 DAYS FOLLOWING THE ENTRY OF THIS ORDER
FOR VIOLATION OF SECTION 15(c)(2) OF THE ACT AND RULE 15c2-11. WITHOUT
ADMITTING OR DENYING THE COMPLAINT ALLEGATIONS, THE FIRM CONSENTED TO THE
FOLLOWING FINDINGS: THE FIRM SUBMITTED QUOTATIONS FOR THE SECURITIES OF 6
ISSUERS; THESE QUOTATIONS WERE SUBMITTED AFTER THE TERMINATION OF AN APRIL
1988 TRADING SUSPENSION COVERING THE 6 SECURITIES AND 40 OTHERS. THE FIRM
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SUBMITTED THESE QUOTATIONS WITHOUT FULFILLING ITS OBLIGATIONS TO ENSURE THAT
THE INFORMATION ABOUT THESE SECURITIES CONTAINED IN ITS FILES WAS TRUE AND
CORRECT AND REASONABLY CURRENT. [SEC DOCKET/CASE NO. 90-25, REL. 34-27649]
12/15/98: 9/17/89 NASD FINE
WM V. FRANKEL & CO. INCORPORATED WAS FINED $2,500 JOINTLY AND SEVERALLY BY THE
NASD AND ASSESSED COSTS OF $459.00. ON 3/16/89 THE NASD FILED A COMPLAINT
AGAINST THE FIRM ALLEGING VIOLATIONS OF ARTICLE III, SECTION 1 OF THE RULES OF
FAIR PRACTICE IN THAT THE FIRM, ACTING THROUGH A CERTAIN INDIVIDUAL, FAILED TO
COMPLY WITH SEC RULE 15c3-3 IN THAT IT FAILED TO ACCURATELY COMPUTE THE AMOUNT
REQUIRED TO BE DEPOSITED INTO THE SPECIAL RESERVE BANK ACCOUNT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMERS.***$@,959.00 PAID JOINTLY AND SEVERALLY ON
9/5/89***[NASD COMPLAINT NO. NY-7039]hk
12/15/98: 5/03/88 NASD FINE
ACCEPTANCE, WAIVER AND CONSENT; WM V. FRANKEL & CO. INCORPORATED WAS FINED
$500 BY THE NASD. THE NASD ALLEGED VIOLATIONS OF THE NMS TRADE REPORTING
RULES, PART XII, SECTION 2 OF SCHEDULE D. ***$500 FINE PAID 2/11/88***[NASD
COMPLAINT NO. MS-630-AWC]hk
12/15/98: 10/05/87 NASD CENSURE AND FINE
ACCEPTANCE, WAIVER AND CONSENT; CENSURED AND FINED $2,500 FOR VIOLATION OF
ARTICLE III, SECTION 1 OF THE RULES OF FAIR PRACTICE. WITHOUT ADMITTING OR
DENYING THE COMPLAINT ALLEGATIONS, THE FIRM CONSENTED TO THE FOLLOWING
FINDINGS: THE FIRM, ACTING THROUGH A CERTAIN INDIVIDUAL, FAILED TO ACCURATELY
PREPARE CUSTOMER LEDGERS, FAILED TO PREPARE A COMPLETE STOCK RECORD ON AT
LEAST A WEEKLY BASIS, FAILED TO ACCURATELY COMPUTE NET CAPITAL, FAILED TO
ACCURATELY COMPUTE THE RESERVE FORMULA COMPUTATION, FAILED TO COMPUTE A WEEKLY
RESERVE FORMULA COMPUTATION, FAILED TO DISCLOSE MARKET MAKING CAPACITY
MARKUP/MARKDOWNS ON CONFIRMATIONS, FAILED TO OBTAIN WRITTEN ARRANGEMENTS FROM
ITS COD/POD CUSTOMERS REGARDING INSTRUCTIONS TO ITS AGENTS AND FAILED TO MAKE
NOTATIONS ON ORDE TICKETS PERTAINING TO THE ASSURANCE OF RVP CUSTOMERS MAKING
DELIVERY OF SECURITIES WITHIN 5 BUSINESS DAYS OF EXECUTION.*** $2,500 PAID
JOINTLY AND SEVERALLY 10/20/87***[NASD COMPLAINT NO. NY-5035-AWC] hk
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