NYSE, INC.

HEARING PANEL DECISION

SOURCE CITE

'34 Act:
§3(a)(39)(F) and§15(b)(4)(B)

Unregistered respondent failed to disclose arrest for federal felony and was barred for 11 years; now deemed statutorily disqualified.

 Without admitting or denying guilt, Respondent settled this matter by stipulating to the following facts:

Padowitz, an unregistered sales assistant, was first employed by Salomon Smith Barney in June 2000.  In December 2000 she was arrested for a federal Class B Felony of Misapplication of Bank Funds. Upon her hire, she was provided a firm handbook that required her to Compliance any arrests.  Padowitz did not make the required disclosure.  She was subsequently pled guilty to and was convicted of the felony in May 2002.

NYSE Rule 351(a) and (b) require that certain criminal events:  arrest, indictment, arraignment, no contest plea, guilty plea, and conviction be promptly reported.  Padowitz violated NYSE Rule 351 by not timely notifying her employer of her arrest.  Further, given the felony nature of the crime, she was deemed a statutorily disqualified individual pursuant to '34 Act Section 3(a)(39)(F) and 15(b)(4)(B).

The panel imposed a Censure and an 11 year bar.

RETURN TO REGULATORY CASES OF NOTE INDEX