Well, the SEC is making progress. Evidently they are not pursuing any Dow10K actions as yet. I wondering if they are getting catered lunches for that? (Note to self: Look up any publicly traded companies into catering lunches.)
NINETEEN BROKERAGE FIRMS SETTLE ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS FOR FAILING TO MAKE TIMELY YEAR 2000-RELATED DISCLOSURE
On October 20, the Commission accepted settlement offers from 19
brokerage firms for failing to timely file all or part of their Form
BD-Y2K. The Form is designed to provide the Commission and the
public with important information concerning the firms' efforts to
ensure that their computer systems are prepared for the Year 2000.
Filings were required to be made on August 31, 1998 with both the
SEC and the self-regulatory organization overseeing the brokerage
firm. Firms having a minimum net capital requirement of $5,000 were
required to file Part I of the form. Firms having a minimum net
capital requirement of $100,000 were also required to file Part II
of the form which provides a lengthier narrative.
In their settlement offers, each firm, without admitting or denying
the Commission's findings, agreed to the issuance of an Order
Instituting Administrative and Cease and Desist Proceedings, Making
Findings, Imposing Remedial Sanctions, and Ordering Respondents to
Cease-and-Desist. The findings by the Commission are divided into
three categories. First, the Commission finds that eight firms (a)
were required to file Part I of Form BD-Y2K on or before August 31,
1998; and (b) as of October 2, 1998 had failed to do so. The Order
requires each of these firms to pay a $5,000 civil penalty. Second,
the Commission finds that eight firms (a) were required to file both
Part I and Part II of Form BD-Y2K on or before August 31, 1998; and
(b) as of October 2, 1998 had filed Part I but not Part II. The
Order requires each of these firms to pay a $15,000 civil penalty.
Third, the Commission finds that three firms (a) were required to
file both Part I and Part II of Form BD-Y2K on or before August 31,
1998; and (b) as of October 2, 1998 had filed neither part. The
Order requires each of these firms to pay a $25,000 civil penalty.
The firms falling into the first category are: Bowling Green
Securities, Inc.; Intra Network Securities, Inc.; Investment
Services Capital Corp.; Mayhill Agency, Inc.; Neutral Switch, Inc.;
The Transportation Group (Securities) Limited; FPS Broker Services,
Inc.; and The Partners Financial Group, Inc. The firms falling into
the second category are: Arbitrage Partners, Inc.; Bluestone
Capital Partners, L.P.; General Re Securities Corporation; Haberman
Brothers; Mahler & Emerson, Inc.; Pellinore Securities Corp.;
Rensselaer Securities Corp.; and Robert E. Meyers & Co. The firms
falling into the third category are: M.R. Beal & Company; First of
America Securities, Inc.; and King Financial Services, Inc.
These actions are part of a joint effort with the NASD and the NYSE
to ensure that firms comply with their Year 2000 disclosure
obligations. (Rel. 34-40573; File No. 9758)
CEASE-AND-DESIST AND ADMINISTRATIVE PROCEEDINGS INSTITUTED AGAINST EIGHTEEN BROKERAGE FIRMS FOR FAILING TO MAKE TIMELY YEAR 2000-RELATED DISCLOSURE
On October 20, the Commission instituted public administrative and
cease-and-desist proceedings against 18 brokerage firms for failing
to timely file all or part of Form BD-Y2K. The Form is designed to
provide the Commission and the public with important information
concerning the firm's efforts to ensure that its computer systems
are prepared for the Year 2000. Filings were required to be made on
August 31, 1998 with both the SEC and the self-regulatory
organization overseeing the brokerage firm. Firms having a minimum
net capital requirement of $5,000 were required to file Part I of
the form. Firms having a minimum net capital requirement of
$100,000 were also required to file Part II of the form which
provides a lengthier narrative.
The SEC's Order alleges that as of October 2, 1998: (a) eight firms
that were required to file Part I of Form BD-Y2K had failed to do
so; (b) five firms that were required to file both Parts I and II of
Form BD-Y2K had failed to file Part II; and (c) five firms that were
required to file both Parts I and II of Form BD-Y2K had filed
neither part.
The eight firms that did not timely file Part I are: Allegheny
Financial Programs, Inc.; Atlantic-Pacific Capital, Inc.; Comstock
Partners, L.L.C.; Constitution Securities, Inc.; Elswick, Banks and
Associates, Inc.; McGlone & Co.; Phoenix Financial Services Corp.;
and Laguna Financial Corp. The five firms that did not timely file
Part II are: Gelber Securities, Inc.; J.W. Barclay & Co., Inc.;
Multi Spectrum Investing Corporation; Stonegate Securities, Inc.;
and V.B.C. Securities. The five firms that did not timely file
Parts I and II are: Alden Capital Markets, Inc.; Bettinger & Leech
Financial Corp.; E.C. Capital, Ltd.; J. Robbins Securities, L.L.C.;
and William Scott & Co., L.L.C.
A hearing will be held to determine whether these allegations are
true, and, if so, to determine what remedial sanctions are
appropriate and in the public interest.
These actions are part of a joint effort with the NASD and the NYSE
to ensure that firms comply with their Year 2000 disclosure
obligations. (Rel. 34-40574; File No. 3-9759)
sec.gov |
