Member Firm and Exchange Member Disciplined for Books-and-Records Violations
Beller Securities Corporation, Inc. of New York, New York, a member firm, and Randy S. Beller of New York, New York, an Exchange member, consented without admitting or denying guilt to findings of books-and-records violations.
- An NYSE hearing panel found that Beller Securities Corporation, Inc. and Randy S. Beller violated Section 17(a) of the Securities Exchange Act of 1934 and Rules 17a-3 and 17a-4 thereunder and NYSE Rule 440 by maintaining inaccurate books and records with respect to certain order tickets. In addition, the firm and Exchange member violated NYSE Rules 440 and 134(d) by failing to retain records of error transactions.
The NYSE imposed a penalty on Beller Securities Corporation, Inc. and Randy S. Beller of a censure and a fine of $35,000, payable jointly and severally. Both consented to the penalty.
Individual Barred for Misappropriation and Failure to Cooperate
Suzanne Marie Forcher of McKinney, Texas, a former non-registered employee, consented without admitting or denying guilt, to findings that she misappropriated customer funds and failed to cooperate in an investigation by the NYSE Division of Enforcement.
- An NYSE hearing panel found that during March 2004, Forcher caused seven unauthorized transfers, totaling approximately $14,098, to be made from the accounts of three firm customers to accounts that she created and controlled at an on-line payment service.
- The panel also found that on two separate occasions, Enforcement requested that Forcher provide a detailed written explanation about these unauthorized transfers. To date, Forcher has not satisfied those requests.
The NYSE imposed a penalty on Forcher of a censure and permanent bar. Forcher consented to the penalty.
Individuals Disciplined for Failure to Disclose Criminal History
Raymond Burton of Famington Hills, Michigan, a former non-registered employee, consented without admitting or denying guilt to findings that he failed to disclose pending felony criminal charges on an employment application submitted to his member organization.
- An NYSE hearing panel found that during April 2004, Burton failed to disclose on an employment application, that he submitted to his member firm employer, his prior criminal history, made a misstatement or omission of fact on his Form U-4 and submitted a Form U-4 to the NYSE that contained false information.
The NYSE imposed a penalty of a censure and a twelve-month bar beyond the period of statutory disqualification. Burton consented to the penalty.
Maria Adriana Cordova of Pasadena, California, a former non-registered employee, consented without admitting or denying guilt to findings that she failed to disclose her criminal history on her employment application submitted to her member organization.
- An NYSE hearing panel found that during March 2004, Cordova failed to disclose on an employment application submitted to her member firm her prior criminal history including a felony conviction for larceny, which at the time subjected her to a statutory disqualification.
The NYSE imposed a penalty of a censure and an 18-month bar. Cordova consented to the penalty.
Individuals Barred for Failure to Cooperate
Jason Andrew Bander of New York, New York, 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 Bander failed to comply with one or more requests to appear and testify before the NYSE regarding certain matters which occurred prior to the termination of his status as a registered employee of a member organization.
The NYSE imposed a penalty on Bander of a censure and a bar until he complies, to become permanent if he does not comply within three months.
Alan Earl Morris of Sarasota, Florida, a former registered representative, consented without admitting or denying guilt to findings of that he failed to cooperate in an investigation by the NYSE Division of Enforcement.
- An NYSE hearing panel found that Morris failed to comply with one or more written requests by the NYSE that he appear and testify concerning one or more matters which occurred prior to the termination of his status as an employee of a member organization.
The NYSE imposed a penalty on Morris of a censure and a permanent bar. Morris consented to the penalty.
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 RegulationOn 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 98 million customer accounts, or 84 percent of the total public customer accounts handled by broker-dealers, with total assets of over $4 trillion. They operate from 20,000 branch offices around the world and employ 144,000 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, Enforcement and Listed Company Compliance, as well as a Risk Assessment Unit and Dispute Resolution/Arbitration.
