|Tuesday, June 9, 1998
Nancy A. Condon - (202) 728-8379
NASD Regulation Sanctions 13 Former Stratton Oakmont Principals and Registered Representatives for Sales Practice Violations
Washington, D.C.—NASD Regulation, Inc., today announced that 13 individuals, including two former managing directors and principals previously associated with Stratton Oakmont, Inc., have been censured, fined, and suspended or permanently barred from the securities industry. Stratton Oakmont Inc., a broker/dealer, was expelled from the National Association of Securities Dealers, Inc. (NASD®) in December 1996.
Jordan Shamah of North Hills, N.Y., a general securities principal and former managing director and partner in the firm, and Irving Stitsky of Brookville, N.Y., a general securities principal and former managing director and junior partner in the firm, have consented to be censured and permanently barred from the industry. In addition, Stitsky has been ordered to pay a fine of $100,000. The allegations against them, to which they neither admit nor deny, include engaging in fraudulent sales practices and failing to supervise others who engaged in such practices; fraudulently failing to make a bona fide public distribution during an offering; and violating a lock-up requirement in connection with a public offering. These findings result from three separate NASD Regulation disciplinary actions.
This brings to 13 the number of former principals and employees of Stratton Oakmont who have recently settled sales practice actions brought against them by NASD Regulation. The settlements are the result of an ongoing, stepped-up effort by NASD Regulation to hold not only brokerage firms accountable for sales practice violations, but also the individual brokers who commit them. Sanctions against these individuals range from suspensions of three months to permanent bars from the securities industry, and fines of up to $100,000.
Former Stratton Oakmont employees sanctioned in conjunction with their actions while at the firm include:
In addition, disciplinary proceedings are still pending against 25 individuals formerly associated with Stratton Oakmont.
NASD Regulation oversees all U.S. stockbrokers and brokerage firms. NASD Regulation, Inc., and The Nasdaq Stock Market, Inc., are subsidiaries of the National Association of Securities Dealers, Inc., the largest securities industry self-regulatory organization in the United States.