News Releases

NEW YORK, July 30, 2003  – The New York Stock Exchange has taken disciplinary actions against eight member firms and 19 individuals for violations of NYSE rules and federal securities laws.  The cases, prosecuted by the NYSE Division of Enforcement, may be subject to review by the Securities and Exchange Commission and, thereafter, federal courts.

Merrill Lynch, Pierce, Fenner & Smith Incorporated Disciplined for Supervisory and Books-and-Records Deficiencies – Managing Director and Administrative Manager also Disciplined.

Merrill Lynch, Pierce, Fenner & Smith Incorporated of New York City, a member firm, consented without admitting or denying guilt to findings of supervisory and books-and-records deficiencies and also consented to a penalty of a censure and $900,000 fine.

The actions against Merrill Lynch and two firm officials arise from the misconduct by a former registered representative at the firm’s Winter Park, Fla. office, Tania M. Torruella, who was previously disciplined by the Exchange.  The firm has reported to the Exchange information concerning approximately 200 customer complaints against Torruella involving more than 550 separate accounts and alleging, among other things, failing to follow instructions, unsuitable trading, exercising discretion without written authorization and creating and issuing unapproved correspondence to customers.  To date, Merrill Lynch has settled virtually all of these claims and has paid approximately $28 million to Torruella’s former customers.  In the NYSE action against Torruella, the NYSE found her guilty of failing to comply with an investigation by the NYSE Division of Enforcement and effectively permanently barred her from the securities industry (see NYSE hearing panel decision 02-121).  In a related action, one of Torruella’s assistants, Marcella M. Maresca, also failed to cooperate with the NYSE investigation and she was barred until she complies with requests to appear and testify in this matter (see NYSE hearing panel decision 02-221).

• An NYSE hearing panel found that during Torruella’s tenure at the firm, she was directly supervised by Ernest James Hinderliter of Winter Park, Fla., managing director of the Winter Park Florida Complex of the firm, and John Salvatore Spinelli of Middletown, Del., the administrative manager.  The panel found that -- although Hinderliter and Spinelli were responsible for the day-to-day running of the Winter Park office and were charged with reasonably supervising the employees and business activities there that were subject to their control -- the firm had the ultimate responsibility to exercise reasonable supervision and control over the office and its employees.
• The panel found that the firm failed to reasonably discharge its duties and obligations with respect to supervision and control of – and providing separate systems of follow-up and review with respect to – certain of its business activities in the branch by failing to establish and maintain appropriate procedures and systems necessary to adequately supervise the areas listed below.The panel found that, as a result of the breakdown in the implementation by the firm of the policies and procedures in place for the supervision and control of the Winter Park office, Torruella’s misconduct went undetected for approximately 1½ years.The business activities cited include:

» obtaining and reviewing customer new account forms;

» monitoring trading activity in certain of the firm’s customer accounts;

» reviewing actively traded customer accounts;

» properly reviewing accounts for unapproved discretionary trading;

» suitability of investments in certain of the firm’s customer accounts;

» adequately following up on compliance visit findings in the branch so that corrective actions were taken; and

» timely allocating block orders in certain customer accounts.

• The hearing panel found that the firm also failed to learn the essential facts relative to certain of its customers and that certain information on its books and records concerning customer accounts was inaccurate.
• Both Hinderliter and Spinelli consented without admitting or denying guilt to findings of supervisory deficiencies.An NYSE hearing panel found that Hinderliter, managing director of the branch during the period from approximately the beginning of 1999-April 17, 2001, failed to reasonably supervise Torruella and also Spinelli, particularly with respect to Hinderliter’s failure to ensure that the responsibilities he delegated to Spinelli were carried out in a reasonable fashion.Concerning Spinelli, the administrative manager of the branch during the period Sept. 7, 1999-March 19, 2001, an NYSE hearing panel found that he failed to reasonably supervise Torruella.The panel found that both Hinderliter and Spinelli failed to use due diligence to learn essential facts relative to certain of Torruella’s customers.

The NYSE imposed the following penalties: on the firm, a censure and $900,000 fine; on Hinderliter, a censure, five-month supervisory bar and an examination requirement; and, on Spinelli, an 18-month supervisory bar and an examination requirement.  Merrill Lynch, Hinderliter and Spinelli consented to the penalties, respectively.

Fahnestock & Co., Inc. Disciplined for Deficiencies Relating to its Mutual Fund Clearance and Financial Regulatory Reporting Activities, and Compliance with Regulatory Notification Requirements – Chairman and CEO also Disciplined.

Fahnestock & Co., Inc. of New York City, a member firm, consented without admitting or denying guilt to findings relating to its mutual fund clearance and financial regulatory reporting activities, and compliance with regulatory notification requirements.   In a related action, Albert G. Lowenthal of Scarsdale, N.Y., Chairman and CEO of the firm, consented without admitting or denying guilt to findings that he permitted his member firm to fail to immediately notify the Exchange and other appropriate regulators of a condition that he reasonably should have believed could lead to operational problems and/or impairment of record-keeping functions, and to seek from the Exchange an exemption from the rules concerning the delivery of mutual fund assets outside the established system.

• An NYSE hearing panel found that in July 1997, following the acquisition by Fahnestock of another member firm, Fahnestock and Lowenthal became aware of the fact that numerous mutual fund reconciliation position differences were being reflected on Fahnestock’s internal reports.The panel found that these position differences continued into 1998, by which time the firm and Lowenthal had also learned of other mutual fund- related operational problems and complaints and by which time certain books and records at the firm relating to mutual funds were not being kept current.
• The hearing panel also found that the firm did not adequately complete reconciliations of mutual fund positions and did not timely resolve (or value, age and suspense) mutual fund-related reconciliation differences or, when required, comprehend such aged position differences in the firm’s net capital and reserve computations.   The panel found that the firm did not timely notify the Exchange and/or the SEC  of these problems and conditions at the firm and that Lowenthal failed to cause the firm to notify the Exchange and/or the SEC.
• The panel found that, during periods in 1997 and 1998, the firm did not provide for appropriate procedures of supervision and control and have adequate systems or procedures in place concerning its mutual fund clearance activities, in connection with the following requirements:

» to adequately reconcile mutual fund positions;

» to timely resolve mutual fund reconciliation differences;

» to value and age mutual fund differences and to record aged differences into a security difference account;

» to prepare accurate net capital computations and reserve computations;

» to obtain and/or maintain the physical possession or control of securities;

» to file accurate FOCUS reports with the Exchange; and

» to timely notify the Exchange and/or the SEC of operational and record-keeping deficiencies.

With respect to the firm, the NYSE imposed a penalty of a censure, $500,000 fine and a requirement that the firm comply with undertakings to retain an independent consultant to conduct a review of the firm’s supervisory systems and that the firm implement recommendations for additional policies, procedures, staffing and supervisory systems set forth in the consultant’s report.

With respect to Lowenthal, the NYSE imposed a penalty of a censure.

The NYSE imposed a further undertaking on both the firm and Lowenthal that requires that, among other things, the firm and Lowenthal assign a person, not unacceptable to the Exchange, who will be an officer, or other person at the firm subject to the Exchange’s jurisdiction, with responsibility to coordinate the operational, net capital and other regulatory aspects of future corporate acquisitions by the firm that involve account conversions.

Fahnestock and Lowenthal consented to the penalties, respectively.

UBS PaineWebber Incorporated Disciplined for Engaging in Unsuitable Recommendations and Sales of Callable CDs and Supervisory and Other Related Deficiencies.

UBS PaineWebber Incorporated (now known as UBS Financial Services Inc.) of Weehawken, N.J., a member firm, consented without admitting or denying guilt to findings relating to unsuitable recommendations and sales of callable CDs and supervisory and other related deficiencies.

• An NYSE hearing panel found that, during the period June 1996-February 2000, the firm engaged in unsuitable recommendations and sales of callable CDs to certain customers.  The panel found that the firm also lacked a reasonable system of supervision for the marketing and sale of callable CDs in that it: failed to provide adequate training to all registered representatives; failed to ensure that marketing and sales were directed to prospective customers for which the product was suitable; and failed to ensure that there was timely and adequate disclosure of the potential risks in investing in callable CDs.
• The hearing panel found that the firm failed to exercise due diligence to learn the essential facts about certain customers, and issued trade confirmations and account statements to customers that did not make adequate disclosure relating to callable CDs. 

The NYSE imposed a penalty of a censure and $175,000 fine.  UBS PaineWebber consented to the penalty.

Fleet Specialist, Inc. Disciplined for Failing to Publish Timely Quotations, and for Failing to Maintain a Fair and Orderly Market in General Motors Corp. Common Stock – Firm Official also Disciplined.

Fleet Specialist, Inc. of New York City, a member firm conducting business as a specialist, consented without admitting or denying guilt to findings that it violated the SEC order-display rule (Section 11A of the ’34 Act and Rule 11Ac1-4(b)(1), there under), and the related NYSE rule, by failing to publish timely quotations in certain stocks for which it is the registered specialist.  Furthermore, the firm and Michael J. Bonnano, also of New York City, an Exchange member and the registered specialist at Fleet in the common stock of General Motors Corp., each consented without admitting or denying guilt to findings relating to the firm’s and Bonnano’s failure to maintain a fair and orderly market in that stock on June 27, 2002.

• An NYSE hearing panel found that, from July 2001-September 2002, the firm, through its specialists, failed to publish immediately a bid or offer that reflected the price and full size of each customer limit order held by the firm that was at a price that would improve the bid or offer in certain stocks for which it is the registered specialist.The panel found that in publishing quotations in these stocks, the firm relied excessively on “quote assist,” an automated default feature within the specialists’ limit-order display book that automatically generates a quotation, ensuring the display of customer limit orders priced at or better than the prevailing quote no later than 28 seconds from receipt by the specialist of the order.[Quote assist does not eliminate the specialist’s responsibility to manually publish an eligible bid or offer immediately; rather quote assist provides the quote of “last resort.”]The hearing panel found that the NYSE Division of Market Surveillance had previously taken informal disciplinary actions, including summary fines, against the firm and certain firm specialists for excessively relying on the quote assist feature in a number of its specialty stocks during the period April 2000-August 2001.
• The hearing panel found that, on June 27, 2002, the firm and Bonnano failed to maintain a fair and orderly market in connection with their trading in General Motors common stock by: failing to participate adequately against the market trend during a period of significant price decline; failing to comply with the specialist’s negative obligation by effecting a transaction in the stock for its dealer account when such dealings were not necessary to the maintenance of a fair and orderly market; and failing to participate adequately as a dealer on the opposite side of the market following a series of "reliquification trades" made for the firm’s dealer account on destabilizing ticks. 

The NYSE imposed the following penalties: on the firm, a censure and $150,000 fine and, on Bonnano, a censure and $25,000 fine.  Fleet Specialist and Bonnano consented to the penalties, respectively.

LL Partners, Inc. Disciplined for Deficiencies Relating to its Finances, Operations and Audit Trail Procedures.

LL Partners, Inc. of New York City, a member firm, consented without admitting or denying guilt to findings relating to its finances, operations and audit trail procedures.

• An NYSE hearing panel found that, at various times between October 2000-February 2003, the firm: improperly processed non-bona fide errors through its error accounts and failed to maintain and preserve written records of such error trades (October-November 2000); failed to properly compute its net capital and effected transactions while failing to maintain its net capital (March-April 2002); and failed to identify a percentage of its account type indicator codes – that identify the type of beneficial owner of the trades – for trades executed through its SuperDot subscription (December 2001-February 2003).

The NYSE imposed a penalty of a censure and $75,000 fine.  LL Partners consented to the penalty.

Kalin Associates, Inc. Disciplined for Books-and-Records, Operational and Supervisory Deficiencies.

Kalin Associates, Inc. of New York City, a member firm, consented without admitting or denying guilt to findings of books-and-records, operational and supervisory deficiencies.

• An NYSE hearing panel found that, during the period August 1999-February 2002, there were certain deficiencies at the firm in the areas of record-keeping, operations and supervision, including failures by the firm to: properly make and preserve order tickets; prepare and file accurate Forms 600TC; maintain adequate records of error transactions; obtain proper customer agreements in its capacity as executing broker in prime brokerage arrangements; process all floor broker commissions for the account of the firm; establish and maintain adequate procedures to assure independence in its annual financial audits; post all activities to its general ledger and trial balance; and prepare monthly net capital computations.The panel found that the firm also permitted a person who was not properly qualified to operate as a clerk on the floor of the Exchange.
• The hearing panel found that the firm failed to reasonably supervise and control certain of its business activities, involving the above areas, to prevent the violative conduct.Specifically, the panel found that, among other things, the firm could not evidence that supervisory reviews were performed to determine whether its floor broker complied with certain Exchange and SEC rules and regulations, including those relating to front-running; on-floor trading; multiple order representation; intra-day trading; and review of order tickets.

The NYSE imposed a penalty of a censure, $40,000 fine and a requirement that the firm retain an outside consultant, not unacceptable to the Exchange, to perform a review and prepare a report relating to the firm’s systems, policies and procedures, including recommendations for different or additional systems, policies and procedures, if necessary, reasonably designed to ensure compliance with NYSE and SEC rules and regulations and prevent a recurrence of the above deficiencies.  Kalin Associates consented to the penalty.

National Brokerage Inc. Disciplined for Supervisory and Operational Deficiencies.

National Brokerage Inc. (formerly known as Sharpe Securities) of New York City, a member firm, consented without admitting or denying guilt to findings of supervisory and operational deficiencies.

• An NYSE hearing panel found that, during the period 1996-1999, the firm had no adequate written supervisory procedures governing its floor-brokerage activities and that, from approximately October 2000-April 2001, the firm occupied an office jointly with a non-member broker-dealer, without receiving Exchange approval and, also without Exchange approval, permitted certain of its supervisory employees (including its Chairman and CEO, the firm’s general partner and the firm’s director of compliance) to devote less than their entire time during business hours to the business of the firm.The panel found that during the relevant period the supervisory employees also were employed by the non-member broker-dealer.

The NYSE imposed a penalty of a censure and $30,000 fine.  National Brokerage consented to the penalty.

D.H. Blair Investment Banking Corp. Disciplined for Recordkeeping and Supervisory Deficiencies.

DH Blair Investment Banking Corp. of New York City, a member firm, consented without admitting or denying guilt to findings of record-keeping and supervisory deficiencies.

• An NYSE hearing panel found that, on April 13-14, 2000, the firm failed to maintain a memorandum of each brokerage order given by its floor broker to a specialist for execution.The panel also found that the firm failed to provide for appropriate supervisory control to assure compliance with securities laws and regulations by failing to establish and maintain adequate written supervisory procedures relating to review of its floor broker’s activities.

The NYSE imposed a penalty of a censure and $13,500 fine.  D.H. Blair consented to the penalty.

Michael Zucker of Scarsdale, N.Y., a former managing director of block trading at a member firm, consented without admitting or denying guilt to findings relating to his trading in two securities, formerly listed and traded on the NYSE, in April 1998.

• An NYSE hearing panel found that Zucker’s member-firm employer used “focus lists,” (that is, lists of issuers that the firm believed could generate future business for the firm, including future underwriting business) and that the firm’s traders were encouraged and expected to capture the highest percentage of trading volume in the securities of focus list-issuers by soliciting firm customers for order flow in focus list-securities, by trading such securities on a proprietary basis when there was no natural order flow, and by advertising the firm’s interest in providing liquidity in the securities.
• The panel found that on April 8, 1998, in one of the stocks, and on April 9, 1998, in the other, Zucker entered orders to buy the security with the knowledge that orders to sell shares of the same security would be entered for substantially the same size, at substantially the same time, and at substantially the same price.  The hearing panel found that Zucker’s trading had the effect of creating a false and misleading appearance of the market and/or active trading in the securities.

The NYSE imposed a penalty of a censure and $45,000 fine.  Zucker consented to the penalty.

Barbara Rochelle Kaplan of Chicago, Ill., a former registered representative, consented without admitting or denying guilt to findings that she improperly allocated numerous trades to a relative’s account, among other violations.

• An NYSE hearing panel found that, during the period Nov. 18, 1998-April 16, 1999, Kaplan, on approximately 375 occasions, effected improper post-execution allocation of trades in a manner that she knew, or should have known, would result in more favorable prices being allocated to the account of her relative to the detriment of an account with public investors.  The panel found that the benefit to the relative’s account from the allocations of these executions totaled more than $450,000 during the five-month period. 
• The panel also found that Kaplan: failed to identify by name or account number the identity of the customers for whom trades were being entered and executed; caused her member firm’s books and records to be inaccurate regarding trade entry and execution; failed to disclose the essential facts of an account she serviced; performed the duties of a registered representative without Exchange or “blue-sky” approval; made misstatements or omissions of fact on Form U-4 submissions filed with the Exchange; and failed to comply with the Exchange’s requests for information.

The NYSE imposed a penalty of a censure, one-year bar and $100,000 fine.  Kaplan consented to the penalty.

After a contested hearing, Thomas Michael Monahan of Glouchester City, N.J., a registered representative, was found guilty of effecting trades of “callable, step-down” certificates of deposit (CDs) for customers at prices away from the market and engaging in sales-practice misconduct in numerous customer accounts.

• An NYSE hearing panel found that, during the period from late 1997 to October 1999, Monahan sold long-term callable, step-down CDs to customers who sought short-term investments.  The panel also found that Monahan erroneously conveyed to these customers the understanding that they had the ability and the right to sell these CDs at full face value (par) at certain times, regardless of the actual redemption provisions contained in the instruments. 
• The hearing panel found that Monahan arranged for the sale of the CDs to other customers at par, knowing that the in-house cross trades were executed at a price that was more than the actual secondary market price of the CDs, and thus failed to act in the best interests of those customers.  The panel found that for some of the sellers in those cross trades the transactions were unauthorized.

The NYSE imposed a penalty on Monahan of censure, one-year suspension and $25,000 fine.

In a related case and also after a contested hearing, Tony Gannacone, III of Annapolis, Md., a former registered representative and trader on the firm’s fixed income desk, was found guilty of executing trades of “callable, step-down” certificates of deposit (CDs) for customers at prices away from the market.

• An NYSE hearing panel found that, in October 1999 and at the request of Thomas Monahan, Gannacone executed 45 cross trades at par, knowing that the in-house cross trades were executed at a price that was more than the actual secondary market price of the CDs.

The NYSE imposed a penalty on Gannacone of a censure and three-month bar. 

James Christopher Urioste, Jr. of Villa Park, Calif., a former registered representative, was found guilty of failing to satisfy an arbitration award and failing to cooperate in an investigation by the NYSE Division of Enforcement.

• An NYSE hearing panel found that, on Nov. 2, 2001, an NYSE arbitration panel issued an award in the amount of $147,385 (which included interest, fees and other costs) in an arbitration filed against Urioste by his member-firm employer, in which the panel found in favor of the firm.  The panel found that Urioste has neither satisfied the award nor filed a timely motion to vacate the award.
• The panel also found that Urioste failed to comply with written requests to provide written information to the Exchange.

The NYSE imposed a penalty on Urioste of a censure and bar until the arbitration award is fully paid or otherwise lawfully satisfied or resolved, and for an additional period of six months after that.

David Ronald Schnitzer of Boca Raton, Fla., a former registered representative, consented without admitting or denying guilt to a finding that he failed to satisfy an arbitration award.

• An NYSE hearing panel found that, on March 8, 2001, an NYSE arbitration panel issued an award in the amount of $249,077 (plus interest, fees and other costs) in an arbitration complaint filed against Schnitzer by his member-firm employer, in which the panel found in favor of the firm.  The panel found that Schnitzer has neither satisfied the award nor filed a motion to vacate the award.

The NYSE imposed a penalty on Schnitzer of a censure, a bar until the arbitration award is fully paid or otherwise lawfully satisfied or resolved, and for an additional period of three months after that.  Schnitzer consented to the penalty. 

Individual Disciplined for Engaging in Unauthorized Outside Business Activities and Other Infractions

Kenneth B. Sawyer of San Francisco, Calif., a former registered representative, consented without admitting or denying guilt to a finding that he engaged in an outside business activity without making a written request and receiving prior written consent of his member-firm employer.

• An NYSE hearing panel found that, during the period January-April 2000, Sawyer engaged in an unauthorized outside business activity when he established a venture capital fund without making a written request and receiving the prior written consent of his member-firm employer.

The NYSE imposed a penalty of a censure and two-month bar.  Sawyer consented to the penalty.

Joseph Patrick Malone of Staten Island, N.Y., a former floor clerk, was found guilty of engaging in acts detrimental to the interest and welfare of the Exchange and failing to cooperate in an investigation by the NYSE Division of Enforcement.

• An NYSE hearing panel found that, during the course of his employment on the Exchange trading floor, Malone committed acts that resulted in his 2003 conviction of the misdemeanor charge of soliciting funds without written permission, after felony charges were issued arising out of Malone’s scheme to defraud individuals by soliciting funds for a charitable purpose without remitting the funds to a charity.
• The panel also found that Malone failed to comply with written requests by the Exchange for testimony and information.

The NYSE imposed a penalty on Malone of a censure and permanent bar.

Individual Disciplined for Altering a Firm Document and Other Violations

Margaret Ann Hall of Chicago, Ill., a former non-registered employee of a member firm, consented without admitting or denying guilt to findings that she altered a firm document and failed to cooperate in an investigation by the NYSE Division of Enforcement.

• An NYSE hearing panel found that Hall altered an “IRA Asset Transfer and Adoption Agreement,” dated Sept. 6, 2001, to cover-up the fact that she mistakenly transferred the stock positions in a customer’s account rather than liquidating the stocks and transferring the assets as the customer had requested.  The panel found that Hall did not receive any funds from the improper transfer of the account.
• The hearing panel found that Hall also failed to timely respond to written requests from the Exchange for information regarding the matter.

The NYSE imposed a penalty of a censure and 15-month bar.  Hall consented to the penalty. 

Nimesh J. Patel of Lansdale, Pa., a former non-registered employee of a member firm, consented without admitting or denying guilt to findings that he misappropriated customer funds and failed to cooperate in an investigation by the NYSE Division of Enforcement.

• An NYSE hearing panel found that, from September 2001-December 2002, Patel issued two checks to himself from customer accounts totaling approximately $217,200.  
• The panel also found that Patel failed to comply with a request by the Exchange for a written explanation concerning the above matter.

The NYSE imposed a penalty of a censure and permanent bar.  Patel consented to the penalty.

Kelly Ann Tyler of Cream Ridge, N.J., a former non-registered employee of a member firm, consented without admitting or denying guilt to findings that she attempted to misappropriate and misappropriated firm funds and failed to cooperate in an investigation by the NYSE Division of Enforcement.

• An NYSE hearing panel found that, during the period Feb. 25, 2002 to Jul. 8, 2002, Tyler misappropriated $12,320 in firm funds for 295 hours of overtime that she did not perform and attempted to misappropriate $100 by signing her supervisor’s name to a cash advance request for that amount.
• The panel also found that Tyler failed to comply with the Exchange’s request to appear and testify.

The NYSE imposed a penalty of a censure and permanent bar.  Tyler consented to the penalty.

Individuals Disciplined for Failure to Disclose Criminal History

James Milton Marcus, Jr. of Grand Prairie, Texas, a former registered representative, was found guilty of failing to disclose his criminal history to his member-firm employer and to the Exchange.

• An NYSE hearing panel found that Marcus failed to disclose, on an employment application he submitted to his member-firm employer and on a Form U-4 he submitted to his member-firm employer and to the Exchange, a 1999 felony conviction for aggravated assault, which subjected Marcus to a statutory disqualification. 

The NYSE imposed a penalty on Marcus of a censure and 10-year bar.

Ilir Aliji of Milwaukee, Wis., a former non-registered employee of a member firm, consented without admitting or denying guilt to findings that he failed to disclose his criminal history to his member-firm employer, among other violations.

• An NYSE hearing panel found that Aliji failed to disclose on an employment application he submitted to his member-firm employer a 1998 felony conviction for attempting to possess with intent to deliver a controlled substance, which conviction subjected Aliji to a statutory disqualification.The panel also found that Aliji made misstatements and/or omissions of fact on his application for registration filed with the Exchange.

The NYSE imposed a penalty of a censure and seven-year bar.  Aliji consented to the penalty.

Santiago David Valenzuela of Montevideo, Uruguay, was found guilty of failing to cooperate in an investigation by the NYSE Division of Enforcement.

• An NYSE hearing panel found that Valenzuela failed to comply with requests to appear and testify before the Exchange regarding certain matters that had occurred prior to the termination of his status as a registered employee of a member firm.

The NYSE imposed a penalty on Valenzuela of a censure and bar until he complies, and an additional three-month bar from when he fully complies.

Vincent M. Quattrocchi of Norwalk, Conn., 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 Quattrocchi failed to comply with a request by the Exchange for a written statement concerning matters that occurred prior to the termination of his status as an employee of a member firm.

The NYSE imposed a penalty on Quattrocchi of a censure and bar until he complies with the Exchange’s requests.

About NYSE Regulation: The New York Stock Exchange is the designated examining authority for the major securities firms in the United States, including more than 250 member firms that deal with the public and account for more than 85 percent of the public customer accounts carried by broker-dealers.  These firms service 93 million customer accounts, operate from more than 21,000 branch offices around the world and employ approximately 157,000 registered personnel.  The NYSE is committed to strong and effective regulation of its members and member firms to protect investors, the health of the financial system, and the integrity of the capital-formation process.  While self regulation in the U.S. securities industry begins with the broker-dealer, the NYSE plays a critical role by maintaining an extensive system for monitoring and regulating the activities of its membership.  The Securities and Exchange Commission oversees these activities.

NYSE Regulation consists of three divisions: Member Firm Regulation, responsible for the financial, operational and sales-practice regulation of member organizations; Market Surveillance, responsible for surveillance of all trading activities at the Exchange; and Enforcement, which investigates and prosecutes violators of NYSE rules and federal securities laws.  There are approximately 560 people in NYSE Regulation, representing approximately one-third of the Exchange’s staff.