OFF TOPIC!! But interesting:
More justice from the SEC in relation to the Nasdaq Market Makers. Now let's
see them get after the OTC market makers and short sellers in Canada.
sec.gov
Kathy Knight-McConnell
Investor to Investor
imall.com
SEC Fines 28 Brokerage Firms $26 Million and Suspends 51 Individual Traders
FOR IMMEDIATE RELEASE 99-2
Commission Cites Respondents for Fraudulent Market-Making Activities
in the Nasdaq Market
Washington, D.C., January 11, 1999 The Securities and Exchange Commission
today imposed civil penalties of more than $26 million on 28 broker-dealers
and suspended 51 individuals from the industry for various lengths of time for
numerous federal antifraud or other violations resulting primarily from
market-making activities in the Nasdaq stock market.
Richard H. Walker, Director of the Division of Enforcement said, "These
settlements effectively bring to a close the long- standing investigation of
the Nasdaq market first begun by the SEC in 1994. The settlements require the
firms to improve their trading policies and procedures, building upon other
reforms already implemented."
Chairman Arthur Levitt said, "Thanks to effective leadership, today Nasdaq is
stronger and better. The sound reforms implemented over the past several years
and the commitment to strong oversight greatly enhance investor protections
and reaffirm confidence in the Nasdaq market."
The firms and individuals consented to a variety of sanctions, including:
civil monetary penalties totaling $26,302,500, disgorgement of wrongful gains
totaling $791,525, suspensions or bars for the individual respondents, and
cease and desist orders. All of the firms and individuals involved in this
action settled the cases without admitting or denying the charges.
The SEC found that the firms had engaged primarily in one or more of the
following types of violations: (a) the coordination of quotations and
transactions by traders making markets in Nasdaq stocks in violation of
antifraud and fictitious quotation rules, (b) the intentional delay of trade
reports, (c) other manipulative activity, (d) failure to honor quoted prices,
(e) failure to provide customer orders with best execution, (f) trading as
principal with advisory clients or discretionary customers without disclosure
and consent, (g) failure to comply with the books and records requirements,
and (h) failure to supervise.
The sanctions on the broker-dealer respondents include: (a) civil monetary
penalties, (b) disgorgement of wrongful gains, where appropriate, (c) cease
and desist orders, and (d) in the case of twenty-two of the broker-dealers, a
review of their policies and procedures relating to the areas of their
violations by an independent consultant to be appointed by the Commission.
The sanctions on the individual respondents include: (a) suspensions or bars
from the securities industry, (b) civil monetary penalties, (c) cease and
desist orders, and (d) disgorgement of wrongful gains, where appropriate.
Details of the Commission's actions, including the names of the firms and
individuals and the respective penalties assessed, are identified in the
Commission's order, which is available at www.sec.gov.
The SEC acknowledges the assistance of the NASD in these cases.
A summary of the order is also available.
Respondent Firms and Individuals
Bear, Stearns & Co., Inc. and Philip D. Zeifer; (File name: 34-40901.txt)
Cantor Fitzgerald & Co. (File name: 34-40902.txt)
S.G. Cowen Securities Corp., Kennedy M. Buckley, David D. Dube, Peter M.
Gilfillan, John P. Mottes and Richard S. Striefler (File name: 34-40903.txt)
Credit Suisse First Boston Corp. (File name: 34-40904.txt)
Dean Witter Reynolds, Inc. (File name: 34-40905.txt)
Donaldson, Lufkin & Jenrette Securities Corp. and Lawrence H. Kurtz (File
name: 34-40906.txt)
Gruntal & Co., L.L.C. (File name: 34-40907.txt)
Hambrecht & Quist LLC and Edward L. Albert (File name: 34-40908.txt)
Herzog, Heine, Geduld, Inc., Ronald F. Cullen, Jr. and Bradley Zipper (File
name: 34-40909.txt)
J.P. Morgan Securities, Inc., Donald A. Dunworth, Mark A. Gallagher and David
J. Mottes (File name: 34-40910.txt)
Jefferies & Company, Inc. (File name: 34-40911.txt)
Legg Mason Wood Walker, Inc.(File name: 34-40912.txt)
Lehman Brothers Inc. (File name: 34-40913.txt)
Mayer & Schweitzer, Inc., Robert Burns and Christopher D. Colgan (File name:
34-40914.txt)
Merrill Lynch, Pierce, Fenner & Smith Inc. (File name: 34-40915.txt)
Morgan Stanley & Co., Inc., Peter W. Ferriso, Jr. and Robert S. Ranzman (File
name: 34-40916.txt)
Olde Discount Corp., Jack G. Monopoli, Frank W. Schwarz, III, and John F.
Watson, Jr. (File name: 34-40917.txt)
CIBC Oppenheimer Corp. and William G. Clark, Jr. (File name: 34-40918.txt)
PaineWebber Inc., Richard A. Bruno, Peter F. Comas, Robert D. Coppola, Gerard
Kane, Joseph J. Palma, Arthur A. Raiola, Joseph H. Raiola and Reuben G. Taub
(File name: 34-40919.txt)
Piper Jaffray Inc. and Stacey R. Rickert (File name: 34-40920.txt)
Prudential Securities Inc., Michael T. Burke, Jr., Joseph G. Candela and
Robert D. Sprotte (File name: 34-40921.txt)
Raymond James & Associates, Inc., Thomas J. Dudenhoefer and Timothy J. Kane
(File name: 34-40922.txt)
The Robinson-Humphrey Company, LLC (File name: 34-40923.txt)
Salomon Smith Barney Inc. (as successor to Salomon Brothers Inc.) (File name:
34-40924.txt)
Salomon Smith Barney Inc. (formerly known as Smith Barney Inc.), Glenn Y.
Blitzer, Barry J. Dusti and George C. Ross, Jr. (File name: 34-40925.txt)
Sherwood Securities Corp., Brian J. Deegan, Richard M. Marino, Edward G.
Schmitz and David M. Zitman (File name: 34-40926.txt)
Spear, Leeds & Kellogg, L.P. (by virtue of the activities of its Troster
Singer division), Michael J. Ling, James P. Morris, John J. Quigley and Eric
J. Scherzer (File name: 34-40927.txt)
Tucker Anthony Inc. (File name: 34-40928.txt)
Warburg Dillon Read, LLC, Michael R. Antolini, Steven D. Murphy, Joel I. Zweig
and David S. Rothman (File name: 34-40929.txt)
William P. Heenan (File name: 34-40930.txt)
sec.gov
Last update: 01/11/99 |
