NYSE Disciplinary Cases
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Wall Street’s Dirty Little Secrets:
Uncovered and analyzed at http://RRBDLAW.com<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
<?:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />New York, New York
June 14, 2005
Every month Wall Street’s regulators issue disciplinary decisions that fine and suspend stockbrokers and their firms --- but many of the more interesting stories get buried among the sheer volume of cases. Nationally-known regulatory lawyer Bill Singer analyzes the securities industry’s docket and provides insight and provocative commentary. Here are some of the more unusual NYSE items Bill uncovers at http://RRBDLAW.com this month:
For Richer and Poorer
In 1999 a husband and wife transfer their son’s custodial account to Advest, Inc., where it is subsequently serviced in 2002 by stockbroker Hamler. In 2003 the husband instructs Hamler to sell some holdings and cut a check for his pick-up. Sounds simple enough . . . right? Nope. See what happens when the wife warns that the sales were unauthorized, the husband wasn’t living at home, and the son never received the proceeds. (Hamler)
A Local Hero?
Then there was the case that started out with the new Branch Manager looking like a stand-up guy. He graciously hires a demoted prior manager as his Administrative Manager and gives him his username/password for his computer/email. He evens goes to bat for the colleague when he thinks he’s owed a finder’s fee. However, the Branch Manager subsequently denies that he ever authorized the colleague to use his email account, which gets the latter fired. You’ve got to read this case to see how it turns out. What a mess! (Scott)
Taxing the NYSE’s Patience
As if Morgan Stanley DW, Inc. didn’t have enough negative publicity these days. Here’s a bizarre case in which its Cupertino branch office was involved is referring clients to an accountant for tax counseling, who then paid referral fees for the business. Seems like the NYSE thinks it just discovered the tip of the iceberg here as it’s settlements include a reference to the alleged voluntary cooperation (testimony and investigation) of at least four individuals. What’s going on here? (McDonald, the Weiners, and Zellers).
RRBDLAW.com is a leading securities-industry legal/regulatory website. The content is published by Bill Singer, a veteran Wall Street regulatory lawyer who represents both the industry and the public.