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To: StockDung who wrote (9269)	8/15/2000 6:22:47 PM
From: Sir Auric Goldfinger	Read Replies (5) \| Respond to of 10354

Monroe Parker Head Trader's NASD Sanction Adjusted on Appeal Washington, Aug. 15 (Bloomberg) -- The former head trader at Monroe Parker Securities Inc. is no longer liable for an unspecified share of a $3.16 million sanction after appealing to the National Association of Securities Dealers. The NASD's appellate body instead held that Ralph Angeline, the former head trader at the defunct Purchase, New York-based brokerage, was liable for an amount of $203,000, equal to his salary and bonus in 1995. ``Because Angeline was involved in the perpetration of the fraud, any salary he received at the time constitutes ill-gotten gains,'' stated the ruling by the NASD National Adjudicatory Council. Still, the council said it found no evidence that Angeline received a share of profits made from the firm's alleged manipulation of Steve Madden Ltd. warrants. Last July, the NASD found Angeline ``jointly and severally'' responsible with the firm and two other people for paying $3.16 million in ill-gotten gains for his role in a manipulation of Steve Madden warrants. ``Jointly and severally'' means those responsible must work out among themselves who will pay what share of the total. The council concluded that Angeline should not have been made one of those liable for the $3.16 million sum. It said that amount represented the firm's illicit gains and the profits by the firm's president Alan S. Lipsky and vice president Bryan J. Herman from ``excessive markups'' in the sale of the warrants in 1995. ``There is no evidence that Angeline received any portion of the $1.1 million profit that Herman and Lipsky made from the sale of their Madden warrants,'' the council ruled. Nor does he seem to have been enriched by the $3.16 million the firm as a whole earned from the manipulation, the council added. Mixed Result ``Is he better off as a result of the change?'' asked Angeline's lawyer, David Gordon about the appellate ruling. ``It's hard to say because his life is ruined anyway because of the whole experience. ... Our position is that he was not a knowing participant in the scheme.'' Gordon said he could not say how much of the $3.16 million has already been paid or what share of that total his 56-year-old client had been expected to shoulder. The NASD also had no information on those details. Angeline and two Monroe Parker ex-brokers were acquitted last April in an alleged $100 million stock fraud case brought by the New York State Attorney General. Lipsky and Herman have surrendered more than $8 million to a restitution fund, according to federal prosecutors in Manhattan. It's not clear how much, if any, of that $8 million will cover the $3.16 million NASD sanction. The NASD's appellate body affirmed last year's decision by NASD regulators to bar Angeline from the securities industry ``in all capacities'' and to fine him $600,000.