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FINRA

For Release:
Contact:
Tuesday, May 13, 1997
Nancy A. Condon - (202) 728-8379

NASD Regulation Details A.R. Baron Regulatory History

Washington, D.C.--In connection with the indictment of A.R. Baron and the arrest of 13 of the firm's executives and employees today by the Manhattan District Attorney's office, NASD Regulation issues the following comment.

 

A.R. Baron, its principals, and brokers, have lengthy disciplinary histories with NASD Regulation and other regulators. The firm ceased conducting business in mid-1996.

 

NASD Regulation's District 8 Office in Chicago worked closely with Manhattan District Attorney Robert M. Morgenthau's office in this case.

 

Regulatory Highlights

 

June 27, 1996 - NASD Regulation, as part of a settlement, fined A.R. Baron $20,000 for failing to maintain the required minimum net capital while conducting a securities business.

 

May 13, 1996 - NASD Regulation, as part of a settlement, fined the firm $11,000 for failure to fully respond to NASD Regulation requests for information made in connection with an on-going examination of the firm by NASD Regulation officials.

 

July 24, 1995 - NASD Regulation ordered A.R. Baron & Co., Inc. and several of its principals to pay fines and restitution of more than $1.5 million, as part of a settlement. The individuals involved include: Andrew Bressman, President; Mark A. Goldman, Chief Financial Officer, Trader and Assistant Compliance Officer; and Burton W. Blank, Chief Operating Officer and former Chief Compliance Officer. Under the settlement, the firm paid more than $900,000 in restitution to customers in 15 states who were charged fraudulently excessive markups in their purchases of Cypros Pharmaceutical Corporation securities from the firm, Goldman, and Blank. The restitution was paid from an interest-bearing escrow account under the control of an independent agent to customers identified by NASD Regulation during its investigation. In addition to the restitution, the settlement required A. R. Baron and the named individuals agreed to pay an aggregate of $585,000 in fines, including $85,000, $65,000 and $35,000 assessed against Goldman, Blank and Bressman, respectively. In addition, under the settlement, Goldman and Blank were suspended in all capacities for 60 days and Bressman was suspended for one week in all capacities.