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NOTE: Stipulation of Facts and Consent to Penalty (SFC), Offers of Settlement (OS) and Letters of Acceptance, Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions and to the entry of findings. 2006 Also see the Statutory Disqualification Index
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David Phillip Zipkin AWC/#20050022099-01/December 2006 Zipkin failed to amend his Form U4 to disclose material information; and failed to appear for an NASD on-the-record interview. David Phillip Zipkin: Barred. |
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Chad Marion David Stephenson AWC/#20050022243-01/December 2006 Stephenson willfully failed to disclose material information on his Form U4. Chad Marion David Stephenson: Fined $10,000; Suspended 1 year in all capacities. |
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Christopher John Rocco Santanelli AWC/#ELI2004036401/December 2006 Santanelli failed to complete an NASD on-the-record interview and failed to respond to NASD requests for information. Also, hei failed to amend his Form U4 to disclose material facts, and engaged in a pattern of trading activity in public customers’ accounts that was excessive in light of the customers’ objectives, financial situations and needs. Christopher John Rocco Santanelli : Barred |
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James Andrew Moon AWC/#2005002671801/December 2006 Moon failed to disclose material information on his Form U4. James Andrew Moon : Fined $5,000; Suspended 3 months in all capacities |
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Dan K. Ly AWC/#2005003477201/December 2006 Ly misrepresented a material fact on his Form U4. Dan K. Ly : Fined $5,000; Suspended 45 days in all capacities |
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Sandeep David Kitson (Principal) and Gurpreet Singh Sabharwal (Principal) OS/#E102003128802/December 2006 Kitson and Sabharwal participated in private securities transactions without providing prior written notice to, or obtaining approval from, their member firm. They willfully failed to disclose material information on their Forms U4. Sandeep David Kitson: Barred Gurpreet Singh Sabharwal: Fined $10,000; Suspended 6 months in all capacities |
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Tyjuan Deleon Jackson #2005003480801/December 2006 Jackson failed to disclose material information on his Form U4 and failed to respond to NASD requests for documents and information. Tyjuan Deleon Jackson : Barred |
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Jeremy Michael Chapman #2005002166501/December 2006 Chapman failed to respond to NASD requests for information and willfully failed to disclose material information on his Uniform Application for Securities Industry Registration and Transfer (Form U4). Jeremy Michael Chapman: Barred |
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Banc One Securities Corporation AWC/#E8A2005001601/December 2006 The Firm failed to timely file Uniform Termination Notices for Securities Industry Registration (Forms U5) with NASD for numerous individuals. Banc One Securities Corporation : Censured; Fined $142,000 |
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Lee Gerald Schroeder (Principal) AWC/#20050026087-01/November 2006 Schroeder failed to
Lee Gerald Schroeder : Barred |
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Marqusia Shanti Melton #2005000725701/November 2006 Melton failed to respond to NASD requests for information and failed to disclose material information on her Form U4. Marqusia Shanti Melton : Barred |
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William Michael Kuether AWC/#20050013765-01)/November 2006 Kuether willfully failed to disclose a material fact on his Form U4; failed to respond truthfully to an NASD request for information ;and failed to respond to subsequent requests for information. William Michael Kuether: Barred |
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Wayne Jason Herman AWC/#2006004713801/November 2006 Herman faiiled to amend his Form U4 to disclose material information. Wayne Jason Herman: Fined $5,000; Suspended 60 days in all capacities |
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John Alfred Elam, Jr. (Principal) #2005002600501/November 2006 Elam failed to respond to NASD requests for information and documents, and willfully failed to amend his Form U4 to disclose material information. John Alfred Elam, Jr. : Barred |
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Robert Lee Banks #2005000524901/November 2006 Banks failed to respond to NASD requests for information and he willfully failed to disclose material information on his Form U4. Robert Lee Banks : Barred |
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Morgan Keegan & Company, Inc. AWC/#2005002050701/November 2006 The Firm failed to timely file amendments to Uniform Applications for Securities Industry Registration or Transfer (Forms U4), and failed to timely file Forms U5 with NASD. Morgan Keegan & Company, Inc. : Censured; Fined $29,000 |
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Fox & Company Investments, Inc. AWC/#E3A20050043-02/November 2006 The Firm failed to timely and accurately
Also, the Firm erroneously made reports to the MSRB for transactions that did not actually occur, and failed to make and keep current order tickets for municipal securities transactions. The Firm failed to adopt and maintain written supervisory procedures reasonably designed to achieve compliance with MSRB rules. Fox & Company Investments, Inc. : Censured; Fined $25,000 |
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Everett Haliburton Toms, Jr. AWC/#2006005180501/October 2006 Toms willfully failed to disclose material information on his Form U4. Everett Haliburton Toms, Jr.: Fined $5,000; Suspended 6 months in all capacities |
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Gregory Lloyd Burdett (Principal) AWC/#2006004208101/October 2006 Burdett willfully failed to disclose material information on his Form U4. Gregory Lloyd Burdett : Barred |
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Bret Raab Bailey AWC/#2006004274601/October 2006 Bailey failed to disclose material facts on his Uniform Application for Securities Industry Registration or Transfer (Form U4). Bret Raab Bailey: Fined $5,000; Suspended 1 year in all capacities. |
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Zelman Sanders, III #E8A2004086101/September 2006 Sanders failed to respond to NASD requests for informationm and failed to disclose material facts on his Form U4. Zelman Sanders, III : Barred |
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Marcelo S. Samson AWC/#20050031428-01/September 2006 Samson willfully failed to amend his Form U4 to disclose material facts; and he failed to respond to NASD requests for information. Marcelo S. Samson: Barred |
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Fredd E. Montoya AWC/#2006004240801/September 2006 Montoya willfully failed to disclose material facts on his Form U4. Fredd E. Montoya : Barred |
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Jennifer Lynn Glowacki #2005002369801/September 2006 Glowacki failed to respond to NASD requests for information, and willfully failed to disclose material information on her Form U4. Jennifer Lynn Glowacki: Barred |
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Frank Paul Eisele AWC/#2005002670601/September 2006 Eisele willfully failed to disclose material information on his Form U4. Frank Paul Eisele: Barred |
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Willie Lee Cotton, III AWC/#2005001922601/September 2006 Cotton failed to timely amend his Form U4 to disclose material information. Willie Lee Cotton, III: Fined $5,000; Suspended 10 business days in all capacities |
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Nesil Caliskanalp #20050015978-01/September 2006 Caliskanalp willfully failed to disclose material information on his Form U4. Caliskanalp failed to respond to NASD requests for information. Nesil Caliskanalp: Barred |
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Commerce One Financial Inc. AWC/#ELI2005000401/September 2006 The Firm failed to timely
Also, equity transactions the firm executed revealed that order tickets did not reflect the order entry time, were not maintained by the firm and did not reflect the order execution time. Commerce One Financial Inc.: Censured; Fined $19,250 |
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The Dratel Group, Inc. and William Marshall Dratel (Registered
Principal) AWC/#2005001123301/September 2006 Acting through Dratel, the Firm failed to timely:
The Dratel Group, Inc. and William Marshall Dratel:Censured; Fined $15,000 (jt/sev) |
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Sands Brothers & Co., Ltd. and Steven Brett Sands (Registered
Principal) OS/# E102004106801/September 2007 Acting through Sands, the Firm
Also, Sands failed to disclose a material fact on his Uniform Application for Securities Industry Registration or Transfer (Form U4). Sands Brothers & Co., Ltd.: Censured; Fined $150,000 ($100,000 of which jt/sev. with Steven Brett Sands) Steven Brett Sands: Fined $100,000 (jt. sev with Sands Bros); Suspended 60 days in principal capacity |
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Joseph Gerald Vitetta OS/#E1020041225-01/August 2006 Vitetta made an unsuitable recommendation to a public customer that resulted in a large surrender charge and a forfeiture of a death benefit. The findings stated that Vietta misappropriated/misused $37,000 from a public customer. Vietta failed to disclose information on his Form U4. Joseph Gerald Vitetta: Ordered to pay $37,000 in restitution to public customer; Barred |
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Bryon Scott Key OS/#2005002663801/August 2006 Key willfully failed to disclose material information on his Form U4. The findings stated that Key also failed to disclose his interest in a securities account to his member firm and to the firm carrying the account. The findings also stated that Key failed to respond to NASD requests for information and documents. Bryon Scott Key: Barred |
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Stephen William Godfrey #E8A2004096901/August 2006 Godfrey failed to amend his Form U4 to disclose material information. Stephen William Godfrey: Fined $5,000; Suspended 30 days in all capacities. |
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Dominick Anthony Burke (Principal) AWC/#2006004760001/August 2006 Burke willfully failed to disclose material information on his Form U4. Dominick Anthony Burke (Principal): Fined $5,000; Suspended 3 months in all capacities. |
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Alan Edmund Bartholemy, Jr. AWC/#20050034152-01/August 2006 Bartholemy willfully failed to amend his Uniform Application for Securities Industry Registration or Transfer (Form U4) to disclose material information. Alan Edmund Bartholemy, Jr.: Barred |
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PGP Financial, Inc. and Ellen Rose Lozinski (Principal) AWC/#ELI2005000631601/August 2006 Acting through Lozinski, the Firm
PGP Financial, Inc.: Censured; Fined $25,000 (jt/several with Lozinski) Ellen Rose Lozinski (Principal): Fined $25,000 (jt/sev with PGP Financial); Suspended 10 business days in principal capacity |
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Joseph Edward Zeglowitsch, III #2005001533901/July 2006 Zeglowitsch willfully failed to disclose material information on his Form U4, and failed to respond to NASD requests for information. Joseph Edward Zeglowitsch, III: Barred |
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Daniel Tirado #2005000224601/July 2006 Tirado willfully failed to disclose material information on his Form U4, and failed to respond to NASD requests for information. Daniel Tirado: Barred |
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David Lynn Robinson #E8A20050009671/July 2006 Robinson willfully failed to amend his Form U4 to disclose material facts, and failed to timely respond to NASD requests for information. David Lynn Robinson: Fined $10,000; Suspended 2 years in all capacities |
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Sergio Magana, Jr. AWC/#2005002079001/July 2006 Magana failed to disclose material information on his Form U4. The suspension in any capacity is in effect from July 3, 2006 through October 2, 2006. Sergio Magana, Jr. : Fined $5,000; Suspended 3 months in all capacities |
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Guang Lu #C9A20020052/July 2006 The U.S. Court of Appeals affirmed the sanction following the SEC decision upon review of the National Adjudicatory Council (NAC) decision. The sanction was based on findings that Lu used discretionary authority in a public customer’s account while failing to provide written notice to the executing member firm and failing to notify his member firm of his association with another member. Also, Lu failed to disclose material facts on his Form U4. Guang Lu: Barred |
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Thomas Dean Bade
(Principal) #E3A2004034901/July 2006 Bade willfully failed to disclose material information on his Uniform Registration for Securities Industry Registration or Transfer (Form U4). Thomas Dean Bade: Barred |
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Gilford Securities, Inc. AWC/#E102002027301/July 2006 Order tickets for transactions the firm effected were inaccurately time stamped. Also, the Firm failed to update, or timely update, former representatives’ Uniform Termination Notice for Securities Industry Registration Forms (Forms U5) to disclose material information. Gilford Securities, Inc.: Censured; Fined $12,500 |
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Fordham Financial Management, Inc. and Harvey Joel Latzen
(Principal) AWC/#E102005014702/July 2006 Acting through Latzen, the Firm failed to report statistical and summary information regarding customer complaints as NASD Rule 3070(c) required. Fordham Financial Management, Inc. and Harvey Joel Latzen: Censured and Fined $15,000 jointly/severally |
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Todd Russell Taskey AWC/#2005003668101/June 2006 Taskey willfully failed to disclose material facts on his Form U4. Todd Russell Taskey : Barred |
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San Sana Neal #E3B20040218-01/ June 2006 Neal willfully failed to disclose material information on his Form U4. San Sana Neal : Barred |
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Bei Min Hong OS/#20050024340-01/June 2006 Hong willfully failed to disclose material information on her Form U4. Also, she failed to respond to NASD requests for information. Bei Min Hong : Barred |
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NatCity Investments, Inc. AWC/# E8A2005014401/June 2006 The Firm
NatCity Investments, Inc. : Censured; Fined $123,500 |
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Fixed Income Securities, LP AWC/#E3A20040016-01)/June 2006 The Firm
Fixed Income Securities, LP : Censured; Fined $23,750 |
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Andrew Sirico (Principal) OS/#ELI2003056602/May 2006 Sirico failed to disclose material information on his Form U4, and failed to timely respond to NASD requests for information. Andrew Sirico : Fined $10,000; Suspended 7 months in all capacities |
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Laurence Scott Newman AWC/#2005000480401/May 2006 Newman willfully failed to disclose a material fact on his Form U4. Laurence Scott Newman: Suspended 3 months in all capacities |
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Jerry Harold Jones AWC/#20050017269-01/May 2006 Jones failed to timely amend his Form U4 to disclose material information. Jerry Harold Jones: Fined $2,500; Suspended 20 business days in all capacities |
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Thomas Mitchell Forbes OS/#2005001829202/May 2006 Forbes willfully failed to disclose material information on his Form U4, and failed to respond to an NASD request for information. Thomas Mitchell Forbes: Barred |
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Peter Christian Dunne OS/#ELI20040097/CLI050004/May 2006 Dunne effected, or caused to be effected, transactions in public customers’ accounts without their prior knowledge, authorization or consent. Also, he failed to amend his Uniform Application for Securities Registration or Transfer (Form U4) in a timely manner. Peter Christian Dunne: Fined $15,000; Suspended 90 days in all capacities |
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Cheryl Lynn Mize AWC/#2005002369701/April 2006 Mize willfully failed to disclose material facts on her Form U4. She failed to respond to NASD requests for information and documents. Cheryl Lynn Mize: Barred |
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George Douglas Linicomn OS/#E062004040001/April 2006 Linicomn willfully failed to disclose a material fact on his Form U4. George Douglas Linicomn: Barred. |
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Haim Aron Levy #E1020040826-01/April 2006 Levy failed to respond to NASD requests for information. Levy willfully failed to disclose material facts on his Form U4 and his employment application. Haim Aron Levy: Barred |
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Albert Douglas Lalonde AWC/#2005000676501/April 2006 Lalonde willfully failed to disclose material facts on his Form U4. Albert Douglas Lalonde: Fined $5,000; Suspended 6 months in all capacities |
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Kirlin Securities, Inc. AWC/#ELI20020057-01/April 2006 Kirlin Securities failed to amend Uniform Applications for Securities Industry Registration or Transfer (Forms U4) and Uniform Termination Notices for Securities Industry Registration (Forms U5) within 30 days after learning of the facts or circumstances giving rise to the amendment. The firm’s written supervisory procedures failed to address certain areas including books and records, net capital computations, clearing arrangement, corporate collateralized mortgage obligations (CMOs), margin accounts, branch office activities, equity trade reporting, corporate bond TRACE reporting and how documents will be evidenced for review. The firm failed to report transactions using the proper “.SLD” late trade modifier, and failed to report transactions to ACT within 90 seconds. Kirlin Securities, Inc.: Censured; Fined $15,000 |
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Aaron Talamayan Ronquillo AWC/#20050019363-01/March 2006 Ronquillo willfully failed to disclose material information on his Form U4. Aaron Talamayan Ronquillo: Barred |
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Clyde Nakaoka (Supervisor) AWC/#2005002116901/March 2006 Nakaoka willfully failed to amend his Form U4 to disclose a material fact. Clyde Nakaoka: Fined $5,000; Suspended 1 year in all capacities |
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Daniel Micaletti, Jr. AWC/#2005001181101/March 2006 Micaletti willfully failed to disclose material information on his Form U4. Daniel Micaletti, Jr.: Fined $5,000; Suspended 3 months in all capacities. |
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Chris Lamont Meacham (Principal) AWC/#20050017095-01/March 2006 Meacham failed to promptly amend his Form U4 to disclose material information. Chris Lamont Meacham: Fined $5,000; Suspended 10 business days in all capacities |
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James Daniel David AWC/#E3B2004023201/March 2006 David willfully misrepresented a material fact on a Form U4. James Daniel David: Fined $5,000; Suspended 3 months in all capacities |
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Marco Alfonsi (Principal) AWC/#E072004010401/March 2006 Alfonsi failed to
Marco Alfonsi: Fined $25,000; Suspended 1 year in all principal capacities. |
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State Farm VP Management Corp. AWC/#E8A2005019201/March 2006 The firm failed to timely file a Form U5 for individuals whose registrations were terminated. The firm failed to establish and maintain a supervisory system that was reasonably designed to achieve compliance with respect to applicable securities laws and regulations, and NASD rules to ensure the timely filing of Forms U5. State Farm VP Mgmt: Censured; Fined $133,000 |
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Nationwide Securities, Inc. AWC/#E8A200540145/March 2006 Nationwide Securities filed Uniform Termination Notices for Securities Industry Registration (Form U5) late, and failed to timely amend Uniform Applications for Securities Industry Registration or Transfer (Forms U4) and Forms U5. The firm failed to prepare adequate written supervisory procedures associated with Forms U4 and U5 filing requirements, and failed to timely file 3070 reports. Nationwide Securities, Inc.: Censured; Fined $30,750 |
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Doyle Mark White OS/#CMS040048/February 2006 White manipulated the market for, and the price of, a company’s common stock. He engaged in a series of wash trades in the company’s stock at arbitrary and artificial prices, which were misleading to the investing public and market participants in that they gave the false appearance of market interest in the stock at the arbitrary prices White had created. White permitted an unregistered person to associate with a member firm. Also, White failed to notify member firms of his association with his member firm and failed to notify his member firm of his accounts at other member firms. Finally, he failed to update his Form U4 with material facts. Doyle Mark White: Barred |
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Douglas Alan Rauh (Principal) #C02040044/February 2006 Rauh willfully failed to disclose material information on his Form U4. Also, Rauh exercised discretion in the public customers’ accounts without receiving their prior written authorization to exercise such discretionary power and without receiving his member firm’s acceptance of the discretionary account. He recommended and effected unsuitable securities transactions in a public customer's account. Finally , while exercising control over a public customer's account, Rauh executed unsuitable options trades Douglas Alan Rauh: Fined $118,405; Barred |
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Robert Patrick Naif #E0220030845-01/February 2006 Naif willfully failed to disclose material information on his Form U4. Robert Patrick Naif: Fined $10,000; Suspended 2 years in all capacities |
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Loren William Magill OS/#E0220040228-03/February 2006 Magill willfully failed to disclose material facts on his Form U4. Loren William Magill: Fined $5,000; Suspended 9 months in all capacities. |
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Christopher Edward Gaddy #C3A050038/February 2006 Gaddy willfully failed to disclose material information on his Form U4, and failed to respond to NASD requests for information. Christopher Edward Gaddy: Barred |
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John Dewayne Crist OS/#2005000741202/February 2006 Crist willfully failed to disclose material information on a Form U4. John Dewayne Crist: Fined $5,000; Suspended 6 months in all capacities |
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Daniel Castaneda AWC/#20050019101-01/February 2006 Castaneda willfully failed to disclose a material fact on his Form U4. Daniel Castaneda: Fined $5,000; Suspended 2 years in all capacities |
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Commonwealth Financial Network AWC/E112004004301/February 2006 The Firm failed to file amendments to Uniform Applications for Securities Industry Registration or Transfer (Forms U4) and Forms U5 in a timely manner. The firm made inaccurate or late 3070 filings. The firm’s supervisory system and procedures were not reasonably designed to achieve compliance with its Article V, and with NASD rules concerning reporting obligations. Commonwealth Financial Network: Censured; Fined $100,000; Required to certify in writing, within 90 days, that it has reviewed its systems and procedures for complying with its Article V and NASD Conduct Rule 3070 reporting obligations, and that it has established systems and procedures reasonably designed to achieve compliance with the reporting requirements set forth therein |
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David H. Becerra SFC/NYSE Hearing Panel 05-165/February 1, 2006 On or about March 30, 1995, Becerra was convicted of a misdemeanor for possession of a firearm and was sentenced to a one-year conditional discharge, the terms of which were satisfied in March 1996. On June 11, 2001, Becerra applied for employment with H & R Block
Financial Advisors (the "Firm") and filled out, among other
things, an employment application. The employment application asked:
“Have you ever been convicted
of a misdemeanor?” Becerra wrongly marked “No” in response to this
question. The Firm terminated Becerra on August 6, 2001. A NYSE Hearing Panel found that Becerra engaged in conduct inconsistent with just and equitable principles of trade in that he failed to disclose a misdemeanor conviction on an application for employment submitted to his member firm employer. David H. Becerra: Censure; Barred for 2 years in all capacities |
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C.E. Unterberg, Towbin, LLC and Thomas Israel Unterberg (Principal) AWC/#E1020030088-01/February 2006 C.E. Unterberg, Towbin, LLC untimely filed Uniform Termination Notices for Securities Industry Registration (Forms U5) with NASD. Acting through Unterberg, the firm permitted an individual to engage in activities that required registration as a General Securities Representative and General Securities Principal. C.E. Unterberg, Towbin, LLC: Censured; Fined $20,000 jointly and severally with Thomas Unterberg; Fined an additional $7,500 Thomas Israel Unterberg: Censured; Fined $20,000 jointly and severally with C.E. Unterberg, Towbin, LLC. |
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Michael Wang AWC/20050019334-02/January 2006 Wang willfully failed to disclose a material fact on his Form U4. Michael Wang: Fined $10,000; Suspended 1 year in all capacities. |
| Bill Singer's Comment: Okay, I'll bite --- generally folks are charged with failing to disclose "material information," but here the charge is "a material fact." Also, when one "willfully" fails to make a disclosure, that often results in a bar or a long suspension. So . . . what's up with this case? |
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Loyde K. Robinson AWC/2005002504101/January 2006 Robinson willfully failed to disclose material information on his Form U4. Loyde K. Robinson: Barred |
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Daniel Morris Porter C1020050041/January 2006 Porter willfully failed to disclose material information on his Form U4. Daniel Morris Porter: Barred |
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Mark Ray Davis (Registered Supervisor) AWC/E3A20040340-01/January 2006 Davis failed to amend his Form U4 with material information. Mark Ray Davis: Fined $3,500; Suspended 10 business days in all capacities |
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Thomas Hart Benton AWC/2005001598701/January 2006 Benton failed to disclose material information on his Form U4. Thomas Hart Benton: Fined $5,000; Suspended 45 days in all capacities. |
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Joseph Gunnar & Co. L.L.C. AWC/E102002034201/January 2006 In connection with a contingency private placement offering of securities, the Firm violated the escrow agreement in that amendments to the offerings were not compliant with Rule 10b-9. When the minimum offering was reached pursuant to the amended offering documents, the funds were released from the escrow account to the issuer; however, the original escrow agreement had never been properly amended --- thus, pursuant to the escrow agreement in place, the funds were released early. The Firm amended the terms and conditions of a second offering to
However, the escrow agreement was not amended, so when the funds were disbursed to the issuer on July 23, 2002, in accordance with the terms of the amended offering, it was inconsistent with the terms of the escrow agreement, under which the funds should have been returned to the customers when the minimum had not been met by June 30. Also, the Firm failed to timely file or ensure the timely filing of amendments Forms U4 and U5 to report complaints received by the firm. In addition, while conducting a securities business, the firm failed to maintain the required minimum net capital required by SEC Rule 15c3-1. Joseph Gunnar & Co LLC: Censured; Fined $20,000 |
| Bill Singer's Comment: Private Placements can be tricky and it's a good opportunity at the beginning of the new year to call your attention to a frequent source of aggravation. Always keep in mind that these deals tend to have two basic documents: 1. The Offering Memorandum, and 2. The Escrow Agreement. If you are amending the Offering Memo, make sure to read the Escrow Agreement, which will likely need to be changed too. With Wall Street starting to see the resurgence of investment banking activity, this is one of those "checklist" items that a lot of folks used to remember to confirm but with the lack of deal activity the past few years they may have forgotten. |
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Leonard & Company and James Sylvester Currier
(Principal) AWC/E8A2003049501/January 2006 Acting through Currier, the Firm
Leonard & Co: Censured; Fined $40,000 James Sylvester Currier: Fined $5,000; Suspended 10 business days in principal capacity; Required to requalify as Principal per Series 24 |
| Bill Singer's Comment: And we have an early leader --- lapses in customer complaint reporting and U4/U5 amendments. We discussed this trend in 2005 and it's clear that NASD is not kidding around. Not only were there some $45,000 in fines imposed but a 10-day sitdown with a requal. You all better make sure the paperwork is getting done. |
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Delta Asset Management Company, LLC and Adam Robert
Goldstein (Principal) AWC/E072003005104/January 2006 Acting through Goldstein, the Firm failed to
Delta Asset Mgmt Co, LLC: Expelled Adam Robert Goldstein: Fined $10,000; Suspended 2 years in principal/supervisory capacities |
| Bill Singer's Comment: Whoa! A member firm gets expelled for this? Supervisory system failures are fairly mundane. Failures to report (or report timely) U4/U5s and customer complaints is also somewhat garden variety. Ditto for non-compliant AML programs. So . . . things were either much worse than NASD is letting us know, or there may be some other issues going on we aren't privy to. Regardless, this is a stiff sanction. |
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Evelyn Billy Simpson SFC/NYSE Hearing Panel 06-1/January 17, 2006 On April 12, 1989, Simpson was arrested by the Santa Ana, California Police Department and charged with Petty Theft, a misdemeanor. On May 9, 1989, Simpson was convicted in Orange County, California of Petty Theft and was sentenced to 13 days in jail and 12 months probation. In addition, on March 20, 1989, Simpson was arrested by the Fountain Valley, California Police Department and charged with submitting False ID to a Peace Officer, a misdemeanor. On May 25, 1989, Simpson was convicted in Orange County, California of submitting False ID to a Peace Officer and was sentenced to nine days in jail.a former non-registered employee with , a member organization. Employment Application
The NYSE Hearing Panel found that Simpson violated NYSE Rule 476(a)(6) by engaging in conduct inconsistent with just and equitable principles of trade in that she failed to disclose her prior criminal history, including two prior misdemeanor convictions, on an employment application she submitted to her member firm. Evelyn Billy Simpson: Censure; Barred for 6 months in all capacities |
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James Thomas Redman NYSE Hearing Panel 05-123/January 13, 2006
Consistent with the notations used to respond to the other questions, Redman placed an “X” in the yes box and wrote in the right margin after that question “reckless driving.” The “X” was then crossed out and a check mark was placed in the no box. Based on Redman’s 1994, 1996 and 1999 convictions, he was required to answer yes to this question. His response to question 3 on the Application for Employment with the Firm was false.
Redman placed an X in the "no" box. Based on his arrest for malicious wounding in 1994 and for drug possession and drug distribution in 1996, he was required to answer yes to this question. Redman's response to question 4 on the Application for Employment with the Firm was false.
After this statement, Redman signed his name and dated the document. Based upon his responses on the application for employment, the Firm hired him on June 15, 2004 in a non-registered capacity as a part-time branch employee. On June 16, 2004, the Firm received the results of the DOJ Report that it had requested on June 3, 2004. The DOJ Report disclosed Redman’s prior criminal arrests and convictions. After the Firm reviewed the DOJ Report, it terminated Respondent’s employment. Prior to the hearing, NYSE moved, pursuant to Exchange Rule 476(d), to have the facts and charges in the Charge Memorandum deemed admitted, since Redman had failed to file an Answer. By Order dated October 4, 2005, the Hearing Officer granted the motion in part and denied it in part. The Hearing Officer deemed the facts contained in the Charge Memorandum admitted, while deferring the issue of whether Redman is guilty of the charges for consideration by the Hearing Panel. At the Hearing, at which neither Respondent nor any person on his behalf was present, NYSE requested that the Hearing Panel impose the penalty of an immediate permanent bar, and cited three precedents:
The NYSE Hearing Panel found that Redman
James Thomas Redman: Permanently barred in all capacities (The Hearing Panel found that, when a respondent has been found guilty of a substantive violation, as well as of failing to cooperate in the investigation of that substantive violation—as in the present case—a permanent bar is appropriate. The reason for this is simple: once a respondent has been found guilty of the underlying violation, there is usually no need for further investigation into that matter, so no amount of future cooperation would be useful) |
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