To: Sir Auric Goldfinger who wrote (3273 ) 9/30/1999 7:03:00 PM From: RockyBalboa Read Replies (1) | Respond to of 19428
Thursday September 30, 6:43 pm Eastern TimeSEC revokes Sterling Foster registration, bars former president WASHINGTON, Sept 30 (Reuters) - The Securities and Exchange Commission announced on Thursday it has reached a settlement with the now-defunct brokerage Sterling Foster Inc. that revokes the firm's registration as a broker-dealer. The regulator also reached a settlement with the firm's former president, Adam Lieberman, that bars him from associating with any broker-dealer. The SEC had accused Sterling Foster and Lieberman, among others, of participating in fraudulent activity that garnered $75 million from investors by manipulating the price of six initial public offerings between October 1994 and February 1997. The SEC alleged that Sterling Foster and Lieberman used fraudulent sales practices to sell those securities to customers at a higher price. The regulator reached a settlement on civil charges Nov. 9, 1998 with the firm and Leiberman, which ordered them to return $11.5 million in ill-gotten gains, prejudgment interest, plus the proceeds of the sale, at fair market prices, of additional assets turned over to the U.S. government. Sterling Foster, which was based in Melville, N.Y., closed in 1997 after the FBI raided its offices in search of evidence about the alleged illegal sales practices. Lieberman pleaded guilty last year to criminal charges and is awaiting sentencing. The SEC and federal prosecutors are pursuing an array of other civil and criminal charges against others allegedly involved in the manipulation scheme. The attorney for Lieberman was not immediately available for comment.