NASD Regulation, Inc. Bars 12 Registered Representatives Suspected of Having an Impostor Take a Qualification Examination on Their Behalf
Washington, D.C. -- NASD Regulation, Inc. announced today that it has censured and barred 12 individuals suspected of paying an impostor to sit for a Qualification Examination on their behalf. In addition, each individual was fined in amounts ranging up to $50,000.
This disciplinary action results from a large scale, intensive investigation conducted by the NASD Regulation New York District Office relating to the qualifications of certain registered representatives. Industry rules require that securities professionals who deal with the public pass certain examinations designed to test their knowledge of the securities markets and regulations. Through its investigatory efforts, NASD Regulation identified several individuals suspected of having paid an impostor to take the exam on their behalf.
"Violating the Association's registration requirements, which exist to protect the public, is a serious offense," said Mary L. Schapiro, President of NASD Regulation, "but paying someone to impersonate a candidate and take the examination for them is misconduct of the highest order."
Once the 12 individuals named below were identified by NASD Regulation staff, each was ordered to appear immediately for on-the-record testimony to answer questions regarding the qualification examinations at issue. Nine of the 12 refused to appear or answer questions. Failure to respond to an inquiry made by NASD Regulation is a violation of its rules which usually results in a disciplinary action, and can carry significant sanctions, including a permanent bar from the industry.
The individuals who have been barred are:
Burton Butler Brous
Stephen Douglas Carollo
Peter Michael DelSeni
David Mark Gold
Kevin Michael Kelly
Frank Michael Mancini
Joseph John Pellegrino
Brian Thomas Rice
Robert James Thornton
NASD Regulation's investigation is continuing with respect to certain other individuals suspected of similar misconduct, and it is anticipated that additional disciplinary actions will be completed shortly. "We will take whatever steps are necessary to rid the industry of individuals who have engaged in this type of conduct," said Schapiro. "Qualification examinations are securities professionals' first chance to prove themselves, and by cheating on the exams, these individuals have proven beyond all doubt that they are not to be trusted."