To: david travis who wrote (1861 ) 10/5/1998 2:27:00 PM From: Sir Auric Goldfinger Read Replies (2) | Respond to of 3383
Carefull TRAV: The noose continues to tighten on Crim brokers: Monroe Parker Securities Ex-Employees Are Indicted on Charges of Stock Fraud By DEBORAH LOHSE Staff Reporter of THE WALL STREET JOURNAL In one of the largest-ever criminal stock-fraud cases, the New York attorney general's office announced the indictment of 12 principals and brokers from defunct Monroe Parker Securities Inc. on charges they defrauded investors of $100 million in the sale and trading of at least 15 small stocks. The firm also was named in the indictment. The attorney general, Dennis Vacco, alleged that from 1994 to 1997 the group manipulated the stock price of targeted "house stocks," using abusive selling tactics such as implying they had inside information or withholding key information to persuade customers over the phone to buy stocks. In many cases, the Monroe Parker brokers also failed to tell customers to whom they were touting stocks that the principals or brokers were selling their own cheaply acquired holdings to them at inflated prices, the attorney general alleged. "They traded against the interest of their clients," Mr. Vacco said at a news conference. Mr. Vacco, a Republican, is seeking re-election in November. One of the brokers indicted is 33-year-old John P. Clancy, who was featured in a June 1 page-one Wall Street Journal article describing audiotapes of him teaching aggressive sales techniques to rookie brokers. Mr. Clancy, who like many of the indicted brokers has an extensive disciplinary record with regulators, was charged with 13 felony counts including grand larceny. Arrest warrants were outstanding for Mr. Clancy and Louis E. DiFruscio, a broker with Fin-Atlantic Securities in New Hyde Park, N.Y., after investigators couldn't locate them in the Friday morning arrest-roundup of six other brokers. Mr. Clancy's attorney, Maranda Fritz, didn't return a call seeking comment. Mr. DiFruscio's attorney couldn't be reached. Former Monroe Parker President Alan Lipsky and Vice President Bryan Herman each were charged with 35 felony counts. Prosecutors allege they made $22 million from the selling tactics. Monroe's compliance director, Richard Levitov, was charged with 25 counts, and head trader Ralph Angeline with 25 counts. All four of the men pleaded not guilty. The indictment supercedes a New York State complaint issued in May. The four men were arrested at that time and have been free on bail. Monroe Parker, which was based in Purchase, N.Y., shut its doors after the National Association of Securities Dealers filed a complaint against the firm and four of its officials in January. That complaint is still pending. Attorneys for Messrs. Lipsky, Herman, and Angeline said Friday they had no comment. Mr. Levitov's lawyer said his client has "no criminal liability." Messrs. Lipsky and Herman were indicted last month in a separate case by federal prosecutors in New York on related charges. That case is still pending as well. The six other brokers, who were indicted Friday and were being held in jail pending raising bail, are: Daniel J. DiMaria, a now-unemployed broker who last worked at J.B. Sutton Group, Great Neck, N.Y., according to the attorney general's office; Stephen M. Kiront, formerly employed at VTR Capital Inc., Valley Stream, N.Y.; Barry M. Kiront of Raike Financial Group Inc., Westbury, N.Y.; Steven A. Anello, of Emerson Bennett & Associates, Harrison, N.Y.; John Tinnelly, of FinAtlantic Securities, Inc., Hawthorne, N.Y.; and Michael O'Donohue, also of Fin-Atlantic. An attorney for Mr. Anello, Michael Bachner, called the charges against his client "completely baseless." Attorneys for the other brokers had no comment or couldn't be reached. Ten of the 12 indicted had worked at Stratton Oakmont Inc., which was shut by the NASD nearly two years ago.interactive.wsj.com Any of those guys join your ex First Jersey brokers, TRAV?