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Bear Stearn’s Ex-Official Stiffly Fined Over Clearing Role Debacle
Former Bear Stearn’s senior executive Richard Harriton agreed to pay a fine of $1 million and be barred from the securities business for at least two years. He still may face criminal charges.
Harriton was in charge of Bear Stearn’s clearing role functions with respect to the infamous brokerage firm A.R. Baron & Com., now defunct.
Harriton and Bear Stearns, the SEC has alleged, expanded their role in the clearing function to include approving and disapproving trades, providing working capital, and preventing A.R. Baron from reversing certain unauthorized trades. For its role, last August Bear Stearns agreed to pay $38.5 million to settle civil and criminal charges that it contributed to A.R. Baron’s securities fraud.
Bear Stearns continues to maintain clearing relationships with other brokerage firms.
Source: Wall Street Journal, April 21, 2000
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