NASD Regulation Files Complaint Against Renaissance Financial Securities Corp. and AJC Equities, Inc. for Obstructing an NASD Regulation Investigation
Washington, D.C. - NASD Regulation, Inc., today announced that it has issued a complaint charging Renaissance Financial Securities Corp., Professional Concepts and Planning, Inc., known as AJC Equities, and 10 current and former employees of the two firms for, among other things, obstructing or attempting to obstruct an NASD RegulationSM investigation. The investigation focused on the firm’s employment of Stanley Cohen, who had been barred from the securities industry by the Securities and Exchange Commission (SEC) in 1973, and as a result, a "statutorily disqualified person.". Named in the complaint, in addition to Stanley Cohen, are his son and daughter, Adam Cohen and Jamie K. C. Scher, respectively.
Renaissance and a number of the individuals named in the complaint have been charged with violations relating to improper or impermissible association with Stanley Cohen, as a disqualified person, and failure to properly register him with the firm.
According to the complaint, in late 1997 NASD Regulation staff in the New York District Office initiated an investigation into Stanley Cohen’s role at Renaissance. In connection with that investigation, the individuals named in the complaint are alleged to have provided false, misleading, inaccurate, or incomplete information to NASD Regulation staff concealing the fact that Stanley Cohen was acting as a trader and manager at the firm, and that the firm allowed him considerable control over the firm’s retail operation. In addition, the complaint alleges that, at various times, Adam Cohen and Jamie Scher attempted to influence others to provide untruthful testimony to NASD Regulation.
The complaint names:
- Adam Cohen: former President of Renaissance, current owner and Chief Executive Officer of AJC Equities, and son of Stanley Cohen;
- Jamie K.C. Scher: former in-house counsel to Renaissance, current in-house counsel to AJC Equities, registered representative for Renaissance and AJC Equities, and daughter of Stanley Cohen;
- Stanley H. Cohen: formerly associated with Renaissance, and currently unemployed. In 1973, Cohen was barred from the securities industry by the SEC, with a right to reapply after two years, for engaging in fraudulent and manipulative activities in connection with the initial public offering and immediate aftermarket trading of stock. As a result of the SEC bar, Cohen is considered a "statutorily disqualified person," and may not associate, in any capacity, with any NASD member firm without the approval of the NASD and the SEC;
- Todd Spehler: former Chief Executive Officer and Chief Financial Officer of Renaissance;
- David Hausch: a former registered broker and principal of Renaissance and AJC Equities;
- Michael Monahan: former registered broker and principal of Renaissance and AJC Equities;
- James Jay Christiano: a former broker with Renaissance, currently registered with AJC Equities as a principal;
- Eileen Torrillo: a former principal of Renaissance, and currently registered as a principal with AJC Equities;
- James R. Buschle: a former broker with Renaissance, currently registered as a broker with AJC Equities;
- Richard Mika: a former broker with Renaissance, currently registered as a broker with AJC Equities;
- Renaissance: a broker/dealer formerly located in Mineola, New York, which withdrew from NASD membership in the spring of 1998; and
- AJC Equities: a registered broker-dealer, which commenced operations in the spring of 1998. The firm is also based in Mineola, New York.
The issuance of a disciplinary complaint represents the initiation of a formal proceeding by NASD Regulation in which findings as to the allegations in the complaint have not been made and does not represent a decision as to any of the allegations contained in the complaint. Because this complaint is unadjudicated, the respondents should be contacted before drawing any conclusion regarding the allegations in the complaint.
Under NASD Regulation rules, the individuals and the firms named in the complaint can file a response and request a hearing before an NASD Regulation disciplinary panel. Possible sanctions include a fine, suspension, bar, or expulsion from the NASD.
Investors can obtain more information about NASD Regulation as well as the disciplinary record of any NASD-registered broker or brokerage firm by calling (800) 289-9999.
NASD Regulation oversees all U.S. stockbrokers and brokerage firms. NASD Regulation, along with The Nasdaq Stock Market, Inc., are subsidiaries of the National Association of Securities Dealers (NASDÒ), the largest securities-industry self-regulatory organization in the United States.