Individual Barred for Misappropriation and Failing to Cooperate
Scott F. Langfitt of Galena, Ohio, a former registered representative, was found guilty of misappropriating customer funds and failing to cooperate in an investigation by the NYSE Division of Enforcement.
- An NYSE hearing panel found that during the period of January 2002 through July 2004, 12 firm customers wired more than $2.5 million from their accounts at the firm, or other financial institutions, to accounts at two local banks in order to purchase bonds that Langfitt claimed were offered by the firm. The local-bank accounts were not accounts of the firm, and the firm did not offer the bonds that Langfitt presented to the customers. Langfitt sent fictitious trade confirmations and account statements reflecting the purchase of the bonds by the customers. However, the customers never received the bonds they purchased, nor were their funds returned.
The panel also found that Langfitt failed to comply with requests by the Exchange for information and testimony.
The NYSE imposed a penalty on Langfitt of a censure and permanent bar.
Individual Disciplined for Failure to Disclose Criminal History and Other Violations
Andrew Davis Mills of San Diego, California, a former registered representative, consented without admitting or denying guilt to findings that he failed to disclose his criminal history to his member firm employer and to the Exchange.
- An NYSE hearing panel found that Mills failed to disclose a prior misdemeanor conviction for petty theft on an employment application he submitted to his member-firm employer, and on a Form U-4 registration application submitted to the Exchange.
The NYSE imposed a penalty of a censure and a one-year bar. Mills consented to the penalty.
Individual Disciplined for Making False Entries in his Member Firm’s Computer System
Troy Richard Menzel of San Francisco, California, a former non-registered employee, consented without admitting or denying guilt to findings that he made false entries in the computer system of his member firm employer concerning the location of securities certificates.
- An NYSE hearing panel found that, during the period October 2002 through June 2003, Menzel made false entries in the computer system of his member-firm employer concerning the location of securities certificates in order to prevent the detection of an out-of-balance position resulting from a trading error that erroneously credited a customer account with stock.
The NYSE imposed a penalty of a censure and an eighteen-month bar. Menzel consented to the penalty.
Individual Barred for Failing to Cooperate
Russell Orin Gulamerian of New York City, a former registered representative, was found guilty of failing to cooperate in an investigation by the NYSE Division of Enforcement.
- An NYSE hearing panel found that Gulamerian failed to comply with Exchange requests that he submit a written explanation regarding certain matters which occurred prior to the termination of his employment with a member organization.
The NYSE imposed a penalty on Gulamerian of a censure and a bar until he complies.
The cases, prosecuted by the NYSE Division of Enforcement, may be subject to review by the Securities and Exchange Commission and, thereafter, federal courts.
About NYSE Regulation
On December 17, 2003, the SEC approved a new governance structure for the NYSE. Under the new design, the NYSE Board of Directors is comprised solely of independent directors, except for the chief executive officer, who have no affiliation with any regulated member firm. A new position of chief regulatory officer was created and reports directly to the board of directors through a new Regulatory Oversight Committee. As a result, NYSE Regulation is insulated from potential influence from NYSE members and member firms, operates separately from the business side and is independent in its decision-making.
NYSE Regulation plays a critical role in monitoring and regulating the activities of its members, member firms and listed companies, as well as enforcing compliance with NYSE rules and federal securities laws. Nearly 400 of the largest securities firms in America are members of the New York Stock Exchange. These firms service 92 million customer accounts, or 90 percent of the total public customer accounts handled by broker-dealers, with total assets of over $3 trillion. They operate from 19,000 branch offices around the world and employ 146,000 registered personnel. Nearly 700 employees, or more than 40 percent of the Exchange’s staff, work for NYSE Regulation, which consists of four divisions: Market Surveillance, Member Firm Regulation and Enforcement and Listed Company Compliance, as well as a Risk Assessment Unit and Dispute Resolution/Arbitration.
