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FINRA

 

 

FOR RELEASE:
CONTACT:
Friday, October 1, 2004
Nancy Condon 202-728-8379
Herb Perone 202-728-8464

 



NASD Hearing Panel Dismisses Complaint Against Win Capital, Two Officers

Washington, D.C.—An NASD Hearing Panel has dismissed a June, 2003 complaint charging Win Capital Corp. of Long Island, NY and two of its officers with securities fraud in connection with a hedge fund offering.

 

NASD's Enforcement Department had charged Win Capital, acting through then-Chairman Steven J. Bayern and then-President Patrick M. Kolenick, with failing to disclose certain material facts to investors in a hedge fund the two men had formed. They raised approximately $1 million by selling limited partnership interests in the hedge fund to 12 investors.

At issue in the hearing was Bayern's and Kolenik's failure to disclose to those investors that of the approximately $1 million raised, $700,000 was used to provide a loan to a business colleague. The hearing panel concluded that NASD Enforcement had failed to prove that the disclosure omissions were material. The panel also found no evidence that the respondents intended to deceive investors.

 

Investors can obtain more information about, and the disciplinary record of, any NASD-registered broker or brokerage firm by using NASD's BrokerCheck. NASD makes BrokerCheck available at no charge to the public. In 2003, members of the public used this service to conduct more than 2.8 million searches for existing brokers or firms and requested almost 180,000 reports in cases where disclosable information existed on a broker or firm. Investors can link directly to BrokerCheck at www.nasdbrokercheck.com. Investors can also access this service by calling 1-800-289-9999.

 

NASD is the leading private-sector provider of financial regulatory services, dedicated to bringing integrity to the markets and confidence to investors through effective and efficient regulation and complementary compliance and technology-based services. NASD touches virtually every aspect of the securities business — from registering and educating all industry participants, to examining securities firms, enforcing both NASD rules and the federal securities laws, and administering the largest dispute resolution forum for investors and registered firms. For more information, please visit our Web site at www.nasd.com.