trant will send to the New York Regional Office a statement of the average daily order transactions written by registrant during that preceding week. 5. Registrant will immediately notify the New York Regional Office when at any time it is not materially in compliance with any of the terms, conditions or undertakings of the offer of settlement. In such event, registrant will not solicit any business or orders from customers for purchase or sale of securities or effect any transactions except for the purpose of liquidating investors' positions through other broker-dealers. 6. Respondents further agree that if it appears that there has been a breach of any of the above terms, conditions or undertakings, a hearing may be convened upon five days' notice, to be held pursuant to the Commission's Rules of Practice, for the sole purpose of determining whether such a breach has occurred and, if so, what if any additional sanctions should be imposed. For purposes of any such proceedings, respondents admit the findings of violations herein and consent to the retention of jurisdiction in this matter for a period of 13 months and such additional time as may be necessary to dispose of any proceedings commenced during the 13 month period. After due consideration of the offer of settlement, the representations and undertakings contained therein, and upon the recommendation of the staff, the Commission determined to accept the offer of settlement. On the basis of the order for proceedings and the offer of settlement, it is found that during the period from about March 1968 to November 1968, registrant, aided and abetted by Conston, Benedict and Mauskopf, willfully violated Sections 7 (c), 15(c) (2) and 17(a) of the Act and Rules 15c2-1 and 17a-3 thereunder and Section 4 of Regulation T issued by the Board of Governors of the Federal Reserve System, in that registrant improperly extended, maintained and arranged for credit to and for customers, hypothecated and permitted the continued hypothecation of securities carried for the accounts of customers under circumstances that permitted such securities to be commingled with other securities under a lien for a loan to registrant, and failed accurately to make and keep current required books and records. In addition, registrant, aided and abetted by the individual respondents, willfully violated Sections 15(b) and 17(a) of the Act and Rules 15b3-1 and 17a-5 thereunder, in that from December 1962 to March 1968 registrant failed promptly to file an amendment correcting information in its registration application which had become inaccurate and incomplete, and failed to file a report of financial condition for the year ending December 31, 1967 within the time specified. It is further found that registrant, Conston and Benedict failed reasonably to supervise persons under their supervision with a view to preventing the above violations. In view of the foregoing, it is in the public interest to take the remedial action specified in the offer of settlement. Accordingly, IT IS ORDERED, subject to the undertakings and agreements set forth in the offer of settlement, that: A. Commencing with the opening of business on March 3, 1969, the operations of all business in securities of Transmittal Securities Corporation, except liquidating transactions for existing customers, be, and they hereby are, suspended for a period of 30 business days. B. Leo L. Conston, Alfred Benedict and Melvin Mauskopf be, and they hereby are, suspended from being associated with registrant for the respective periods of 15, 15, and five business days, Conston's suspension to be for the first 15 business days of registrant's suspension, Benedict's suspension to be for the second 15 business days of registrant's suspension, and Mauskopf's suspension to be for the last five business days of registrant's suspension. Neither Conston nor Benedict shall receive any compensation from registrant or share in any profits of registrant for the period of his suspension, and Mauskopf shall not receive any compensation from registrant for the period of his suspension. For the Commission (pursuant to delegated authority). ORVAL L. DuBois, Secretary. FEBRUARY 6, 1969. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. The Securities and Exchange Commission has accepted offers of settlement and entered orders of censure against Lehman Brothers and Rowles, Winston & Co., . Inc., broker-dealer firms of New York City and Houston, respectively, in administrative proceedings under the Securities Exchange Act of 1934 brought against those firms and certain persons affiliated with them (see Releases 34-8518 and 34-8519). In both cases, the respondents were charged with, among other things, violations of the Commission's record-keeping requirements under the said Act.1 In announcing such actions, the Commission took occasion again to caution all brokers and dealers of their responsibilities to comply with all applicable provisions of the Federal securities laws, and particularly those relating to the maintenance of current books and records, financial responsibility and prompt delivery of securities and settlement of transactions. In connection with the foregoing actions, the Commission received the cooperation of the staff of the New York Stock Exchange. JUNE 13, 1968. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. The Securities and Exchange Commission has ordered administrative proceedings under the Securities Exchange Act of 1934 involving the broker-dealer firm of L. D. Sherman & Co., Inc., of New York City. Also named as respondents were Lee D. Sherman, president, and Harry Reisberg, secretary-treasurer. The proceedings are based upon staff charges that Sherman & Co., aided and abetted by Sherman and Reisberg, violated provisions of the said Act and Commission rules thereunder by reason of the alleged failure of the firm (a) to file a report of financial condition for the year ended 1967 (due not later than March 30, 1968) as required by Rule 17a-5, and (b) to make and keep current, as required by Rule 17a-3, the following books and records: general ledger, customer's ledger, securities failed to receive and failed to deliver ledger, and securities record or ledger. A hearing will be held on June 17, 1968, in the Commission's New York Regional Office for the purpose of taking evidence on the staff allegations and affording the respondents an opportunity to offer any defenses thereto. The hearing will be concerned initially with the question whether it is necessary or appropriate in the public interest or for the protection of investors to order the suspension of the registration of Sherman & Co. pending decision on the question of the ultimate remedial action which should be taken. SECURITIES AND EXCHANGE COMMISSION NEW YORK REGIONAL OFFICE NEW YORK, NEW YORK Mahlon M. Frankhauser, Administrator of the New York Regional Office of the Securities and Exchange Commission, today announced that on February 27, 1969 Judge David N. Edelstein, of the United States District Court for the Southern District of New York, in New York City, signed a consent judgment of permanent injunction enjoining James Anthony & Co., Inc., a broker-dealer located at 76 Beaver Street, New York, New York, and Samuel Masiello, its president and sole shareholder, from further violations of the Commission's bookkeeping and financial reporting rules and the anti-fraud provisions of the Securities Exchange Act of 1934. In addition, the judgment restrained James Anthony & Co., Inc., from transferring or otherwise disposing of any of its assets and provided for the appointment of a receiver. On February 28, 1969, Judge David N. Edelstein appointed John Timothy Collins as receiver of the assets of James Anthony & Co., Inc. Mr. Collins' office 1 As to other actions which the Commission has previously announced dealing with backoffice problems, see SEC v. Allied Securities Co., EDNY, 68C 704; SEC v. Dalen Investments and Funds, Inc., SD Fla., 60-1051-CF; and Securities Exchange Act Release 8464, In the Matter of Kroeze, McLarty & Duddleston, Release 34-8331 In the Matter of L. D. Sherman & Co., Inc., and Release 34-8447, In the Matter of Pickard & Co. address is 301 Park Avenue, New York, New York and his telephone number is HA 1-1340. The Commission was represented in this action by Mr. Frankhauser, Donald N. Malawsky, Assistant Regional Administrator, John J. Phelan, III and Michael Blane, Chief Attorneys and Edward Jay Rosner, Attorney. The investigation leading to the filing of the complaint was conducted by Alfred O. Kruhm and James R. Crosby, Securities Investigators, under the supervision of Mr. Frankhauser. |