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Notice To Members 83-21

Gerald Greenspan

Published Date:

TO: All NASD Members

The New York Regional Office of the Securities and Exchange Commission has asked the NASD to provide members with a notice regarding the activities of Gerald Greenspan outlined below.

Mr. Greenspan was permanently enjoined by the United States District Court (S.D.N.Y.) from further violations of the federal securities laws in 1960, 1975 and 1980. The 1980 injunction requires Mr. Greenspan, among other things, to disclose the prior court orders entered against him before purchasing any securities. In 1979 and 1980 he was convicted of criminal contempt for violating the provisions of those injunctions and sentenced to a 6 month and 2 year prison sentence, respectively.

Greenspan's activities include:

1. Purchasing stocks from brokers with checks drawn on bank accounts with insufficient funds or drawn on non-existent bank accounts; and
2. Purchasing shares of stock in Hiller Aviation Corp. at numerous brokerage firms causing the appearance of artificial trading.

Greenspan's activities have resulted in losses to the brokers who had to sell out his accounts. Over a short span of time in 1977 Greenspan issued approximately $125,000 in "bad" checks, and immediately upon release from prison in 1979, Greenspan again issued approximately $55,000 in "bad" checks.

Greenspan is a heavyset male Caucasian approximately 58 years old. Prior to imprisonment, he was a self-employed tax consultant. He has used aliases such as "Jay Greene," "Gerry Greenspan," "Jack Greene" and "Jerry Greenspan." Most recently he used the name "Jay Goldberg." He frequently uses the name "Thelma" as a reference.

He has supplied brokers with residence addresses at 2418 Bragg Street, Brooklyn, New York; Constellation de Fabron, Lyre, Nice 66220, France; and addresses in Fort Lee and Union City, New Jersey. Most recently, he used the address of 500 Central Avenue (Apt. 1704) Union City, New Jersey 07087.

By reason of the fact that Gerald Greenspan was released from prison on February 8, 1983, and since his previous pattern indicates a likelihood of further violations, registered representatives should be apprised of the aforementioned facts.

Should Mr. Greenspan open or attempt to open an account with any member firms, they should contact Seth T. Taube, Chief, Branch of Enforcement #2, Securities and Exchange Commission, at (212) 264-1628.

Please duplicate this Notice and distribute to all branch offices and appropriate departments.

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