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Pastimes : Whodunit? Two Stockbrokers Murdered in Jersey; Reference -- Ignore unavailable to you. Want to Upgrade?

To: jhild who wrote (52)	11/10/1999 12:14:00 AM
From: jhild	Respond to of 79

Re: August 25, 1999, Conflict between New York prosecutors, SEC could derail Marchiano's criminal trial By GINA EDWARDS, Staff Writer The criminal stock fraud case against Naples brokerage owner Anthony Marchiano could be in trouble if a federal regulatory action goes forward. New York prosecutors say a parallel action by the Securities and Exchange Commission could compromise witnesses - some of whom fear for their safety. An administrative law judge has ordered the SEC case to go ahead despite protests from the Manhattan District Attorney's office and the SEC regulators who brought the action. SEC regulators have filed an emergency request to overturn the judge's ruling. They say the ruling flies in the face of recent efforts by the SEC to coordinate with law enforcement to put brokers who steal from investors behind bars. The five members who make up the Securities and Exchange Commission, who are appointed by the president, are expected to make a decision this week. Marchiano, owner of defunct Naples brokerage A.S. Goldmen & Co., is accused of running a criminal enterprise that bilked investors around the country out of almost $100 million. Another 32 defendants linked to A.S. Goldmen were charged when the Manhattan DA unsealed indictments in July. If convicted, the 37-year-old Marchiano could face up to 25 years on the most serious of the charges. The SEC complaint - which overlaps part of the criminal indictments - accuses Marchiano of running a "boiler room" in Naples where brokers made hundreds of calls a day to investors pitching stock in the fraudulent Stadium Naples golf development. Other allegations date back to 1994 and include misconduct involving initial public stock offerings orchestrated A.S. Goldmen. Marchiano's attorney, Wilmer "Buddy" Parker, says the situation raises serious concerns about government conduct. He says SEC regulators weren't prepared to move forward with the case but announced the action simultaneously with the Manhattan DA's indictment to ride the "coattails" of publicity. Parker, a former federal prosecutor with more than 18 years experience, wrote in court papers that it's "inexcusable" if SEC regulators filed the complaint to gain publicity and then asked for the delay to cover up investigative inadequacies. But SEC Deputy Chief of Litigation Steve Crimmins said filing the complaint and the subsequent request for a delay is in the public's interest. Here's why: Crimmins said waiting until the criminal case is finished could allow some of the SEC charges to expire under the five-year legal time limit for bringing action. As for publicity, Crimmins said: "You have to be concerned about public education. You want to get out the full story about what the regulatory response is." In its emergency appeal to the SEC, the enforcement staff says the administrative law judge's ruling is counter to the public interest. The Manhattan DA's office has argued in court filings that the SEC case would allow Marchiano and the other defendants a "strategic advantage." SEC civil administrative rules would allow the defendants much broader access to discovery evidence than is allowed under criminal procedure law. Marchiano's attorney disputes that argument. "What do you mean you don't want the defendants to have a strategic advantage? Aren't' the facts, the facts?" he said in an interview. In court filings, prosecutors say they are concerned about the intimidation of witnesses to lie under oath; Several witnesses and other individuals have expressed concern about their physical safety. Adding to that fear are Parker's statements to the Naples Daily News that Marchiano is himself the victim of "mob extortion" directed at A.S. Goldmen stocks. "Regardless of whether these fears and allegations are justified, the mere perception among witnesses that such threats exist - spread by the leading defendant - strongly argues for avoiding exposing witnesses except under the security offered by criminal law enforcement authorities," Assistant District Attorney Paul Mahoney wrote in a memorandum to the judge. In the memo, Mahoney says the defendants' legal fees in the SEC case could deplete their assets - assets prosecutors want to eventually seize to pay back cheated investors. Administrative Law Judge Lillian McEwen, who ordered the SEC case to go forward, wrote in her opinion: "The district attorney's apparent attempt to frustrate respondents' right to representation by counsel in this proceeding is not well taken," McEwen wrote. McEwen said a lengthy stay doesn't serve the public interest and that she's "confident that the Courts of New York and the Division can protect any witnesses." Nine months ago, the SEC amended its rules to make it easier for federal and state law enforcement authorities to halt SEC civil actions until parallel criminal cases finish. The SEC's enforcement staff says in court papers: "That rule is consistent with SEC Chairman Arthur Levitt's initiative to work with criminal authorities more closely to 'not merely kick brokers out of the business, temporarily or permanently, but to put them behind bars for stealing from innocent investors.'" naplesnews.com

To: jhild who wrote (52)	11/10/1999 12:21:00 AM
From: jhild	Read Replies (1) \| Respond to of 79

Re: September 4, 1999, A.S. Goldmen: Prosecutors overturn judge's ruling in Marchiano trial By GINA EDWARDS, Staff Writer In a victory for New York prosecutors, the five members of the federal Securities and Exchange Commission overturned a judge's ruling that criminal prosecutors said could jeopardize their stock fraud case against Naples brokerage A.S. Goldmen & Co. Prosecutors with the Manhattan District Attorneys office said they feared witnesses could be intimidated and coached to lie if a parallel SEC regulatory action was allowed to go forward at the same time as the criminal case. That's because under regulatory actions, defendants are allowed more liberal access to evidence and investigative files than in criminal cases. Prosecutors say some witnesses have expressed fears for their safety, in part because of a statement made by Naples brokerage owner Anthony Marchiano's lawyer. Marchiano's lawyer said Marchiano that was a victim of mob extortion. Naples millionaire Marchiano is accused of running a criminal enterprise that bilked investors around the country out of almost $100 million. Another 32 defendants linked to A.S. Goldmen were charged when the Manhattan DA unsealed indictments in July. If convicted, the 37-year-old Marchiano could face up to 25 years in prison on the most serious charges. The SEC complaint - which overlaps part of the criminal indictments - accuses Marchiano of running a "boiler room" in Naples where brokers made hundreds of calls a day to investors pitching stock in the fraudulent Stadium Naples golf development. Other allegations date back to 1994 and include misconduct involving initial public stock offerings orchestrated by Goldmen. The commission, which is chaired by Arthur Levitt, found on Thursday that the SEC has the power to delay an administrative action for good cause. The SEC gave the opinion in its order that the criminal case could be substantially prejudiced if the regulatory action continued at the same time. Such damage to the criminal case is not in the public interest, the SEC said. Marchiano's attorney, Wilmer "Buddy" Parker, claimed a partial victory saying that the SEC cautioned that prosecutors can't delay the administrative action indefinitely. The SEC said regulators with the SEC's Division of Enforcement must provide the administrative law judge with an update in 90 days about the progress of the criminal case. Parker said Marchiano doesn't plan to appeal the SEC's decision to federal court. naplesnews.com