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Name
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Residence
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What
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Why
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Date
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LaBine, Lawrence Michael
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Scottsdale, Arizona
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Complaint Filed
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Named as a respondent in an NASD complaint alleging that he effected transactions in the accounts of public customers without the knowledge and consent of the customers and without having a reasonable basis for believing that the recommendations were suitable for the customers on the basis of the facts disclosed by the customers regarding their other security holdings, financial situations, needs, and investment objectives.
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February 2005
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Lacey, Juan-Carlos
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Unknown
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Consent to censure and three year bar.
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Altered an account statement issued by his member firm employer and fabricated an approval signature of a purported manager in connection with an application for a loan with an outside lender.
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January 24, 2005
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Ladah, Brian
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San Francisco, California
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2-Year Suspension
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He engaged in private securities transactions outside the normal scope of employment with his member firm and failed to give prior written notice to, and receive approval from, his member firm. The findings also stated that he engaged in outside business activities without providing prompt written notice to his member firm.
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January 2005
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Lamb, Bob
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New York, New York
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12-Month Bar
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Caused his member organization employer to violate NYSE Rule 472 and violated NYSE Rule 476(a)(6) by issuing research reports on companies that did not provide sound basis for evaluating facts regarding those companies' business prospects, contained exaggerated or unwarranted claims about those companies, and/or contained opinions for which there was no reasonable basis; violated NYSE Rule 476(a)(6) by making and maintaining hedge fund investments away from his member organization employer without his member organization's knowledge or consent.
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August 2006
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Lancaster, Gary Lynn
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Vancouver, Washington
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Barred
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Lancaster participated in private securities transactions and failed to provide his member firm with written notice.
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November 2006
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Land, Benny Jim
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Wichita Falls, Texas
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Barred
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Land consented to the described sanctions and to the entry of findings that he forged public customers' signatures and/or initials on various firm application forms and other customer-related firm documents.
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August 2006
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Lane, Timothy John
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Eugene, Oregon
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Barred
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Lane borrowed $5,000 from a public customer in contravention of his member firm's written procedures that prohibit employees from borrowing or otherwise obtaining any customer funds for personal use or investment.
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May 2007
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Langfitt, Scott E.
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Unknown
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Censure and permanent bar.
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Misappropriated customer funds and violated Exchange Rule 477 in that he failed to comply with Exchange request for testimony and information.
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July 21, 2005
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Lankford, Joshua Wayne
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Dallas, TX
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Barred
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Lankford failed to respond to FINRA requests to provide testimony and information and documents.
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December 2007
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Lanzatell, David J.
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Rochester, New York
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Barred
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He willfully failed to amend his Form U4 to disclose a material fact. The findings also stated that Lanzatella failed to respond to NASD requests for information regarding the non-disclosure.
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March 2005
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LaPiana, Daniel Richard
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Gibsonia, PA
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Barred
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LaPiana improperly obtained $822.53 from his member firm by submitting a falsified expense report indicating purchases for his branch office, and misrepresenting the charges on the requisition request. The findings stated that LaPiana created a fictitious critical illness insurance application for a public customer without the customer's authority or consent, signed the customer's name and submitted the document to his member firm's underwriting department. The findings also stated that LaPiana improperly maintained former employees on the payroll of an insurance company following their resignations, failed to notify his member firm that theyresigned, created false productivity reports and submitted the documents to his member firm, thereby ensuring that they would continue to receive compensation.
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December 2007
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Lara, Thomas Garcia (Jr.)
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El Paso, Texas
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Barred
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He prepared and submitted requests for reimbursement to his member firm for business travel expenses totaling $26,268 that he did not incur, and accepted the reimbursement payment knowing that he had not incurred the expenses for which he was being reimbursed.
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November 2005
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Larsen, Brian Clifford
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Dorr, Michigan
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Barred
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He affixed the signatures of public customers on an account authorization document without the customers' knowledge or consent. The findings also stated that Larsen recommended and effected transactions for public customers without having reasonable grounds for believing that the recommendations and resultant transactions were suitable for the customers based on their financial situation and needs. NASD also found that Larsen purchased securities in his personal accounts for which he did not make timely payments as required by Regulation X and sold each position before payment was due, using the proceeds of the sale to pay for the purchase. In addition, NASD found that Larsen caused his member firm to extend credit to him in violation of Regulation T by writing checks from one account, depositing that check in the other account, and then either transferring money back to the first account or depositing a check from the second account back to the first account before the initial check cleared.
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February 2005
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Laster, Jeffrey Michael
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Florham Park, NJ
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Barred
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Laster ubmitted a falsified letter in another registered representative's name requesting a hardship withdrawal of $3,308 from that representative's trading account without his authorization or consent. The findings stated that Laster forged the registered representative's signature on the letter and on the check that was subsequently issued as a result of his request and received the proceeds.
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April 2008
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Laszlo, Mark A.
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Unknown
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Consent to censure and three-and-a-half year bar.
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Effected unauthorized transactions in 40 customer accounts; recommended and effected unsuitable transactions in accounts of three customers; made omissions of material facts to four customers in connection with solicitation of certain securities and to two other customers with regard to value of their jointly held accounts; misrepresented values of customer's accounts to that customer; violated NYSE Rule 408(a) by effecting discretionary trading in accounts of two customers; violated NYSE Rule 723 by effecting option transactions in two customers' accounts without having reasonable basis for believing that customers had appropriate knowledge and experience in financial matters; violated NYSE Rule 724 by effecting option transactions on discretionary basis in five customers' accounts without first obtaining customers' written authorization; caused violation of Rules 17a-3 and 17a-4 under Securities Exchange Act of 1934 and NYSE Rule 440 by mismarking as unsolicited certain order tickets and by causing inaccurate information to be reflected on new account documents of five customers and on option agreements of three customers
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March 9, 2006
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Lazarus, Adam
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Brookville, NY
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30-month bar
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Lazarus violated NYSE Rule 476(a)(6) by effecting unauthorized trades in five customers' accounts; violated NYSE Rule 476(a)(6) by utilizing trading strategy and effecting trades in four customers' accounts that were unsuitable given customers' age, circumstances, investment objectives, and risk tolerance; violated NYSE Rule 476(a)(6) by failing to follow instructions from four customers; caused violation of NYSE Rule 351(d) by failing to inform member firm employer of complaints from four customers.
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October 2007
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Lau, Peter Jr.
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Hauppauge, New York
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Barred
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Violated NYSE Rule 476(a)(6) by misappropriating funds from customers of his member firm employer; violated NYSE Rule 477 by failing to comply with a written request by NYSE Regulation for information regarding activities that occurred during his employment at a member firm.
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August 2006
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Lawson, Billy Joe
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North Little Rock, AR
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Barred
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Lawson received insurance premium payments from clients and failed to promptly remit the funds to his member firm's affiliated insurance company, and used newly received premium payments to make premium payments for other customers. The findings stated that Lawson failed to respond to an NASD request for an on-the-record interview.
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September 2007
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Layman, Nathan Dale
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Farmersville, Texas
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Barred
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Layman consented to the described sanction and to the entry of findings that he effected, or caused to be effected, the purchase and sale of securities in public customers' accounts without their knowledge or authorization. The findings stated that Layman forged a public customer's signature to a "Switch Letter/ Repositioning of Assets Form," which Layman's member firm required in order to effectuate the unauthorized transactions.
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March, 2007
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Laymon, Terry Michael
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Grosse Pointe Woods, Michigan
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Barred
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He consented to the described sanctions and to the entry of findings that the firm (Magellan Securities Inc.) permitted him to be associated as its president and sole owner requiring him to act in a principal capacity while he was subject to "disqualification" as defined in Article III, Section 4 of NASD Bylaws. The findings stated that he intentionally, recklessly, or negligently created false account statements with incorrect or inflated valuations to induce a public customer to continue to maintain accounts with the firm. The findings also stated that the firm, acting through Laymon, failed to qualify and register as a person associated with the firm, a financial and operations principal, or an introducing broker-dealer financial and operations principal. In addition, the findings stated that the firm permitted him to perform duties as a general securities principal while his registration status with NASD was inactive due to his failure to complete in a timely matter the Regulatory Element of NASD's Continuing Education Requirement. The findings further stated that the firm, acting through Laymon, failed to file 3070 reports disclosing reportable events and failed to amend Form BD and Form U4 to report these disciplinary actions. NASD found that he failed to respond completely and timely to NASD requests for information.
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April 2005
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Lazariw, Rosemary
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Tampa, Florida
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Barred
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Failure to Provide Information Requested under NASD Rule 8210.
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May 2005
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Le,
Van Hung
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Arlington,
Virginia
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Barred
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He effected unauthorized transactions in
customer accounts.
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October
2005
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Leahy, Paul Joseph
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Staten Island, New York
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Barred
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While exercising effective control over a public customer's account, effected, or caused to be effected, numerous and excessive securities transactions without having reasonable grounds for believing that such transactions were suitable for the customer in view of the size and frequency of the transactions, the nature of the account, and customer's financial situation, investment objectives, and needs.
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May 2005
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LeBaron, Victoria R.
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Sarasota, Florida
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Censure and permanent bar
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LeBaron was convicted of felony of Grand Theft in the Second Degree for misappropriating funds belonging to customer of her member firm and failed to comply with one or more written requests by NYSE Regulation for information concerning a matter that occurred prior to the termination of his employment with his member firm employer.
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May 2007
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Lee, Damascus Isaiha
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Brooklyn, New York
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Barred
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Pursuant to NASD Rule 9552(h)
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August, 2006
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Lee, Dickson Virchill
|
Kent, Washington
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1-Year Suspension
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A member firm, acting through Lee, failed to record private placement transactions on its books and records. The findings stated that a company, acting through Lee, entered into a written agreement with an unregistered individual and retained him as an independent contractor to offer and sell its securities, and Lee caused the company to pay commissions to the individual, thus dealing with him on terms and conditions different from those it accorded the general public. The findings also stated that Lee knew, or should have known, that the independent contractor effected transactions in securities without registration as a broker or dealer in violation of Section 15(a)(1) of the Securities Exchange Act of 1934. The findings also included that, in connection with his company's offers and sales of securities, Lee caused his company to make untrue statements of material fact and omitted to state material facts necessary in order to make the statements that it made, in light of the circumstances in which they were made, not misleading.
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April 2007
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Lee, Justin James
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Lawrence, Massachusetts
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Barred
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Lee consented to the described sanction and to the entry of findings that he executed transactions in a public customer's account without the customer's authorization or consent. The findings stated that Lee failed to appear for an on-the-record interview.
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July 2006
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Lee, Kyong K.
|
Virginia Beach, Virginia
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Barred
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He caused funds to be withdrawn from a public customer's variable annuity, deposited these funds into his bank account, and then lent the funds to a third party without the authorization of the customer.
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April 2005
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Lee, Max Dong Ho
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Los Angeles, California
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Barred
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He willfully failed to disclose a material fact on his Form U4.
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February 2005
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Lee, Sterling Scott
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Austin, Texas
|
Barred
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The NAC imposed the sanctions following appeal of an OHO decision. The sanctions were based on findings that Lee allowed a statutorily disqualified individual to function as the firm's principal without his properly being registered and failed to disclose the individual's association with the firm on a Uniform Application for Broker-Dealer Registration (Form BD). The sanctions were based on findings that Lee caused the firm to charge retail customers fraudulently excessive markups and failed to disclose the markups on customer confirmations. This decision has been appealed to the SEC. The sanctions, other than the bars, are not in effect pending consideration of the appeal.
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April 2007
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Lefkowitz, Mark Allen
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Staten Island, New York
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Barred
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He failed to execute a written order from a public customer to sell shares of stock, rendering the value of the stock virtually worthless.
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February 2005
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Legreca, John Michael
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Port Charlotte, Florida
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Barred
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Pursuant to NASD Rule 9552(h)
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April 2007
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Lehman, Philip Allen
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Englewood, Ohio
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Barred
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He failed to respond to NASD requests for documents and information, and to appear to provide testimony.
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April 2005
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Leighton, John
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Complaint Filed
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NASD charged Kenneth Pasternak, former CEO of Knight Securities, L.P., and John Leighton, former head of the firm's Institutional Sales Desk, with supervisory violations in connection with fraudulent sales to institutional customers in 1999 and 2000.
In December 2004, Knight paid $79 million to settle NASD and SEC charges that it had defrauded institutional customers through the fraudulent and deceptive conduct of its leading institutional sales trader, who was John Leighton's brother.
That sanction included $25 million in fines and a payment of $54 million in ill-gotten profits and interest into a Fair Fund established by the SEC for compensating harmed investors.
The action charges Pasternak and Leighton with failing to supervise Leighton's brother and failing to establish and enforce a system designed to ensure compliance with federal securities laws and NASD rules. NASD's investigation of Leighton's brother is continuing. From January 1999 to September 2000, Leighton's brother was responsible for generating nearly $135 million in trading profits for Knight, or approximately 30 percent of the trading profits of Knight's entire Institutional Sales Desk. NASD's complaint calls the magnitude of the profits generated by Leighton's brother- both in absolute terms and in profit per share- "extraordinary."
"In this case, it is inconceivable that fraudulent trading of this magnitude could go on for so long and generate such an exorbitant amount of excess profits and escape detection by the firm's supervisory systems and the supervisors themselves," said NASD Vice Chairman Mary L. Schapiro. "Supervisors are obligated to take appropriate steps to ensure that persons acting under their supervision comply with securities law and regulations, and we will not hesitate to take action against supervisors who fail to fulfill that responsibility,"
John Leighton was his brother's supervisor and, under a unique profit-sharing arrangement approved by Pasternak, received half of his brother's trading compensation. NASD's complaint alleges that John Leighton received millions of dollars during 1999 and 2000 from his brother's trading profits, including ill-gotten profits from his brother's fraudulent trading. Their profit-sharing arrangement and family ties created an inherent conflict of interest, and gave John Leighton a strong incentive not to question his brother's trading or how he was able to generate such enormous profits. NASD's complaint alleges that John Leighton did not conduct, and did not arrange for anyone else to conduct, any meaningful supervisory review of his brother's trading and did not take any steps reasonably designed to achieve compliance with federal securities laws and NASD rules.
Pasternak was the Chief Executive Officer of Knight and John Leighton's supervisor. Pasternak was also the designated supervisor of the firm's Institutional Sales Desk in John Leighton's absence. NASD's complaint alleges that Pasternak was responsible for the deficient supervisory structure by assigning John Leighton to supervise his brother's trading while at the same time approving their unique profit-sharing arrangement. Pasternak also failed to have the firm adopt any supervisory procedures or systems that would address the conflict inherent in this unusually suspect arrangement and the deficient supervisory structure he approved. NASD's complaint alleges that although Pasternak knew that John Leighton assigned most of Knight's largest institutional customer accounts to his brother, and knew that Leighton's brother generated an inordinate amount of profits for Knight in absolute terms and a grossly disproportionate amount of the profits of the firm's Institutional Sales Desk, Pasternak did not take reasonable steps to determine whether John Leighton was monitoring or reviewing his brother's trading, did not review or monitor the trading himself, and did not assign anyone else to do so. Neither John Leighton nor Pasternak questioned the extraordinary profits or took any steps to see how Leighton's brother was making them.
Pasternak served on NASD's Board of Governors from May 30, 2000 to September 17, 2001.
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April 2005
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Leighton, Joseph
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Barred
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The Securities and Exchange Commission (SEC) and NASD announced parallel enforcement actions against Joseph Leighton, formerly the leading institutional sales trader at Knight Securities, L.P. (now known as Knight Equity Markets, L.P.). Leighton has been barred from the securities industry and will pay more than $4 million to settle charges that he made millions of dollars in fraudulent trades with Knight's institutional customers.
From January 1999 to September 2000, Joseph Leighton was responsible for generating nearly $135 million in trading profits for Knight-approximately 30 percent of the trading profits of Knight's entire Institutional Sales Desk. NASD found and the SEC alleged that Joseph Leighton generated approximately $41 million dollars in excessive profits by pricing trades with institutional customers in a manner contrary to customers' expectations and industry custom, and using deceptive trading practices to disguise his pricing and the amount of Knight's profits. Joseph Leighton left Knight in 2000.
Joseph Leighton's institutional customers believed that the prices they paid for trades were based upon Knight's cost in acquiring (or selling) shares to fill their orders. Instead, Joseph Leighton had Knight acquire (or sell) a stock position after he received an institutional customer's order, and then waited until the price of the stock moved before executing trades to fill the customer's order, creating greater profits for Knight at the expense of his customer. If the price of the stock moved in favor of Knight's position, Joseph Leighton delayed executions and traded with his customers at prices reflecting the positive price movement. If the price of the stock moved against Knight's position, Joseph Leighton executed trades with customers based upon prices at an earlier time, which were more advantageous to Knight.
NASD found that Joseph Leighton did not disclose to customers how he priced trades, or the fact that he was not pricing trades based on Knight's costs. His course of trading deceived customers about Knight's cost of acquisition (or sale) and the profits he was making on trades with them. Leighton used that deception to make tens of millions of dollars in excessive profits for Knight at his customers' expense.
NASD also found that Joseph Leighton engaged in fraudulent trading in his proprietary "back book" account at Knight. Leighton received a greater payment for trading profits generated in his back book account than he did for customary trades with Knight's institutional customers. Without disclosing it to his institutional customers, Leighton traded with them in his back book account, taking the opposite side of trades with them at prices that were extremely profitable for him and disadvantageous to his customers.
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January
2006
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Lent, Kevin John
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New City, New York
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Barred
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Misappropriated customers funds and made unauthorized transfers of funds between customer accounts; engaged in acts detrimental to interest or welfare of NYSE in that he was convicted of two counts of mail fraud for misappropriating funds belonging to customer; violated NYSE Rule 477 by failing to cooperate with NYSE's investigation.
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June 2006
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Lerner, Marat
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Brooklyn, NY
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1-Year Suspension
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Lerner opened checking and savings bank accounts for fictitious customers through an affiliate of his member firm in order to meet monthly sales goals.
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January 2008
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Lesnick, Adam Neil
|
Unknown | | | | |
