Proceeding Number 2005003610701

Extended Hearing Panel Decision in Department of Enforcement v. William J. Murphy, Carl M. Birkelbach, and Respondent Firm

May 6, 2010

For exercising discretion in two clients' accounts without written authority from the clients or approval from his firm, engaging in unauthorized trading, recommending and effecting unsuitable transactions, and churning, Respondent William J. Murphy is barred from associating with any member firm in any capacity.  Murphy is also fined $591,933.67 as disgorgement of commissions.  In light of the bar, no additional sanction is imposed for creating and delivering misleading communications to a client.  For entering into a settlement agreement with an improper confidentiality provision, Respondent 3 is fined $2,500.  For failing to supervise, Respondent Carl M. Birkelbach is fined $25,000, suspended for six months as a general securities principal and options principal, and required to re-qualify before serving in either of those principal capacities.

 

This decision has been appealed.

View Decision (PDF 235 KB)