McCarthy, Papandrea and Picerni each failed to appear and provide additional investigative testimony about misconduct during the period 1999 through June 2003 to the NYSE Division of Enforcement in violation of NYSE Rule 477. In settling this matter, they neither admitted nor denied the charge.
“These three individuals chose expulsion from the industry rather than face further questioning. The actions taken against them exemplify the importance we place upon protecting the integrity of the marketplace by requiring full cooperation in investigations,” said Susan Light, vice president, Enforcement, NYSE Regulation. “NYSE Regulation is continuing to pursue those specialists and clerks who abused the public’s trust and disadvantaged customer orders.”
McCarthy, Papandrea and Picerni’s former specialist firm, LaBranche & Co. LLC. settled this matter in March 2004, without admitting or denying guilt, agreeing to a total payment of $63,518,760. See LaBranche & Co. LLC , Decision 04-52 (NYSE Hearing Panel March 29, 2004). The settlement included the securities for which McCarthy, Panadrea and Picerni were the firm’s designated specialists (during some or all of the period at issue): Tyco International Ltd., Merck & Co. Inc. and Compaq Computer Corp. Here are the links to today's three Hearing Panel Decisions:
Eugene C. McCarthy, Hearing Panel Decision #:06-057
Vincent Papandrea, Hearing Panel Decision #:06-058
Anthony Picerni, Hearing Panel Decision #:06-059
About NYSE Regulation, Inc.
NYSE Regulation, Inc., is a not-for-profit corporation dedicated to strengthening market integrity and investor protection. A subsidiary of NYSE Group, Inc., NYSE Regulation’s board of directors is comprised of a majority of directors unaffiliated with any other NYSE board. Each director must also be independent from member organizations and listed companies. As a result, NYSE Regulation is independent in its decision-making.
NYSE Regulation protects investors by regulating the activities of member organizations through the enforcement of marketplace rules and federal securities laws. NYSE member organizations hold 98 million customer accounts or 84 percent of the total public customer accounts handled by broker-dealers. Total assets of NYSE member organizations are over $4 trillion. They operate from 20,000 branch offices around the world and employ 195,000 registered personnel. NYSE Regulation also ensures that companies listed on the NYSE and on NYSE Arca meet their financial and corporate governance listing standards.
NYSE Regulation 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. For more information, visit our website at www.nyseregulation.com.
