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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: pilapir who wrote (9261)	2/26/2002 11:17:26 PM
From: StockDung	Respond to of 19428

SEC Can Freeze Stockbroker's Assets By M.R. KROPKO .c The Associated Press CLEVELAND (AP) - A federal judge on Tuesday granted the Securities and Exchange Commission's request for a temporary order freezing assets of a stockbroker suspected of stealing $40 million from 50 clients. SEC lawyer Carleasa Coates successfully argued to U.S. District Judge Patricia Gaughan that the agency needs an accounting of Frank Gruttadauria's dealings and stock trading entities he created, and must ensure he does not dispose of assets in the meantime. Gruttadauria, 44, is suspected of conducting a 15-year scam while working as a broker for various firms, including SG Cowen Corp. and Lehman Brothers Inc. The SEC alleges that Gruttadauria used his clients' money to support a lavish lifestyle. According to the agency, he spent $1.25 million on a Lear jet, bought a $975,000 New York condominium and showered his assistant with cash and gifts, all while falsifying account statements. He disappeared Jan. 11 and has been jailed since he surrendered to the FBI on Feb. 9 in Cleveland. He is being held without bond. Gruttadauria was not in the courtroom Tuesday. Roger Synenberg, a lawyer representing him in a related criminal case, spoke for him in the SEC's civil case. Synenberg said he appeared as a favor to the court and does not intend to represent Gruttadauria in the SEC case. The judge granted the SEC's request for a temporary restraining order against Gruttadauria and two businesses the SEC says he controlled, DH Strategic Partners Inc. and JYM Trading Trust. Another hearing on the matter is set for March 11. The SEC also asked that a court-appointed receiver be appointed to make sure assets are protected. Gaughan said she lacks enough information to justify appointing a receiver, but said the SEC may renew the request as it discovers more information about Gruttadauria's dealings. AP-NY-02-26-02 2231EST