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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (24773)	1/26/2002 1:35:02 AM
From: rb852369	Read Replies (1) \| Respond to of 99280

Zeev----when you have time please go to the DrBob thread and check out the Call for Help post from Dr_b (post #50929. The post is OT and is medical in nature. TIA

To: Zeev Hed who wrote (24773)	1/26/2002 9:49:42 AM
From: Bruce A. Thompson	Respond to of 99280

Hi Zeev, OTOT Aren't these your boys? biz.yahoo.com Thursday January 24, 2:56 pm Eastern Time SEC charges ex-Datek firm with securities fraud (UPDATE: Adds byline, recasts) By Niala Boodhoo WASHINGTON, Jan 24 (Reuters) - Wall Street's top regulator on Thursday fined former day-trading firm Datek Securities Corp., now iCapital Markets LLC, $6.3 million for illegally profiting from trades made on a system reserved for small customers. ADVERTISEMENT Federal prosecutors said they were also investigating the day-trading scheme but had reached an agreement not to prosecute Datek Online Holdings Corp. and its unit iCapital Markets, who are continuing to cooperate fully in the government probe. The privately-held holding company also owns Datek Online, one of the largest online trading firms in the U.S. Datek Online is not part of the ongoing investigations being conducted by the Securities and Exchange Commission (SEC) and U.S. Attorney's office. ``Beyond the specific facts of this case, the size of the penalty and sanctions carry an important message to market participants - particularly in an online trading environment - about their obligation to speak truthfully to both the markets and to regulators,'' said William Baker, an associate director in the SEC's enforcement division. ILLEGAL TRADES From at least 1993 through March 1998, Datek Securities illegally executed trades through the Nasdaq's small order execution system, at the time designed for small public customers, not broker-dealers, the SEC said. ``One benefit was the speed at which they could get the best available price, as well as the substantial trading profits they realized,'' Baker said. The day-trading firm used special software designed to rapidly track price movements of stocks. Day traders traditionally make their money by cashing in on the price changes in securities over a short period of time, normally a day. The software was not illegal, but the small order execution system enabled the Datek traders to process millions of trades quicker than other firms. Datek Securities hid the use of the system by setting up ``nominee'' accounts and paying the nominees for their identity and complete trading authority over the accounts, the SEC said. Datek sold off the day-trading assets of the business in 1998 to Heartland Securities Corp. ICapital now operates as one of Datek's three broker-dealers. The company's new investors were not involved in the conduct now under investigation, the SEC said. Datek said in a statement that it was pleased to have resolved the matter, which it settled with the SEC without admitting or denying the findings." ``Today, we reached closure with the SEC on a matter related to a day-trading business that we exited in early 1998,'' Datek said. "We are assured that neither Datek Online, nor any of our employees, have any exposure to criminal charges related to these issues. (with additional reporting by Gail Appleson)