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Name
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Residence
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What
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Why
|
Date
|
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Paige,
David Brian
|
Marietta,
Ohio
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Barred
|
He converted at least $212,648 of public
customers’ funds for his personal use or for some purpose other than the
customers’ benefit.
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December
2005
|
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Palacios, Jon Manuel
|
San Bernardino, California
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Barred
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Pursuant to NASD Rule 9552(h).
|
June 2007
|
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Palen, David John
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Scottsdale, Arizona
|
Barred
|
Palen withdrew approximately $203,000 from public customer accounts to pay for financial planning fees that the customers had not authorized or approved. The complaint alleges that Palen signed a public customer's name to an advisory service agreement without the customer's authorization or consent and submitted it to his member firm. The complaint also alleges that Palen failed to appear for an NASD on-the-record interview.
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November 2006
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Palermo, Richard A.
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Center Brunswick, New York
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Barred
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Violated NYSE Rule 476(a)(6) by misappropriating funds belonging to his member-firm employer; violated NYSE Rule 477 by failing to comply with one or more requests by Division of Enforcement to provide information concerning matters that occurred during his employment with member organization.
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July 2006
|
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Palermo,
Russell
|
Huntley,
Illinois
|
Complaint
Filed
|
He was named as a respondent in an NASD
complaint alleging that instead of using funds he received from public
customers for investment purposes, he used them for his own personal benefit
without their knowledge or consent. The complaint also alleges that he failed
to timely respond to NASD requests for information.
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November
2005
|
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Palmer, Kelli Frances
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St. Augustine, Florida
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Barred
|
Misappropriated funds belonging to her member firm employer and violated Exchange Rule 351(b), by failing to report her arrest for a felony that occurred during her employment with a member firm employer.
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June 2006
|
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Palmer, Patricia Ann
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Fiskdale, Massachusetts
|
1-Year Suspension
|
Palmer participated in private securities transactions without prior written notice to, or prior written approval from, her member firm.
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July 2007
|
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Palmieri, Fredric Joseph
|
Marlton, New Jersey
|
Barred
|
Palmieri knowingly submitted a false claim to an insurance company requesting payment for the theft of his automobile when he was aware that the vehicle had not been stolen.
|
June 2007
|
|
Pantelakis, Emanuel
|
Flushing, NY
|
Barred
|
Through the actions of Pantelakis and registeredrepresentatives, S.G. Martin Securities LLC fraudulently misrepresented and omitted material facts to public customers in connection with the sale of securities. Pantelakis failed to establish, maintain and enforce a supervisory system reasonably designed to enforce securities laws, regulationsand NASD rules regarding the sales of securities to retail customers, and the firm's written supervisory procedures were not reasonably designed to supervise the registered representatives and principals involved in the sale of securities. The findings also stated that the firm and Pantelakis failed to reasonably supervise the salesactivities of registered representatives. The findings also included that Pantelakis knowingly provided false testimony during a FINRA on-the-record interview.
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March 2008
|
|
Panzarino, Emil Brian (Jr.)
|
Staten Island, New York
|
Barred
|
Panzarino consented to the described sanction and to the entry of findings that he received $877 from a public customer for the purpose of paying the premium on an automobile insurance policy, and rather than apply the funds to the policy, Panzarino kept and used the funds for his personal use and benefit without the customer's knowledge or authorization. The findings stated that Panzarino failed to appear for an NASD on-the-record interview.
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August 2006
|
|
Papandrea, Vincent
|
Springfield, New Jersey
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Barred
|
Violated NYSE Rule 477 by failing to comply with a written request for testimony.
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May 2006
|
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Pappalardo, Joseph Frank (Jr.)
|
Staten Island, New York
|
Barred
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He effected private securities transactions and failed to provide prior written notification to his member firm. The findings also stated that Pappalardo failed to respond to NASD requests to appear for an on-the-record interview.
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February 2005
|
|
Paquette, Nancy Lee
|
Delafield, Wisconsin
|
Barred
|
She engaged in a pattern of providing inaccurate, incomplete and misleading information to NASD, in correspondence and while under oath, that hindered an investigation and interfered with NASD's regulatory function. The findings stated that Paquette was being investigated for false life insurance policies she purportedly sold to a construction company's employees.
|
March 2006
|
|
Paracha,
Tanveer Ahmad
|
Chicago,
Illinois
|
Barred
|
He effected transactions in the account of a
public customer without the customer’s knowledge or consent and without
having a reasonable basis for believing that the recommendations were
suitable for the customer based on the nature of the customer’s account,
financial situation and needs.
|
September
2005
|
|
Paratore, Paul Douglas
|
Webster, New York
|
Barred
|
Paratore converted a customer's monthly insurance premium payments to other, unrelated customers without the customer's knowledge, authorization or consent. The sanction was also based on findings that Paratore settled the complaints of four customers by diverting the insurance premium payments to the customers who complained, to reimburse them for surrender charges or to pay their premiums in order to reinstate their lapsed policies, without his member firm's permission. This decision has been appealed to the NAC and the sanction is not in effect pending consideration of the appeal.
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July 2007
|
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Parker, Donna Jean
|
Lakewood, WA
|
Barred
|
Parker forged employees' signatures on firm documents and misused public customer funds by transferring money from the customer's account to an account that belonged to family members.
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February 2008
|
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Parks, Samuel Conant
|
Kingston, Washington
|
Barred
|
Parks failed to disclose that he had received compensation from the issuer for his recommendations and sales of a stock to public customers. The findings stated that Parks failed to disclose conflict of interest and compensation to customers in that he knew, or had reason to know, that the agreement to compensate him for the sale of the stock and subsequent payments to him created an actual material conflict of interest at the time of he published research reports regarding the stock. The findings also stated that Parks participated in private securities transactions, for compensation, without providing prior notice to, and receiving approval from, his member firm. The findings also included that Parks opened an account with another firm without providing prior notification to his member firm or of his association with the other member firm, and falsely stated that no NASD registered person had an interest in the account on a new account signature card.
|
November 2006
|
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Parolisi, James Vincent
|
Unknown
|
Consent to censure and permanent bar
|
Violated Exchange Rule 477 by failing to comply with requests for testimony.
|
February 23, 2005
|
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Parrelly, James Anthony
|
Dearborn, Michigan
|
Complaint Filed
|
Parrelly was named as a respondent in an NASD complaint alleging that he recommended and effected transactions in Class B shares of mutual funds for a public customer without having reasonable grounds for believing that the resultant transactions were suitable for the customer on the basis of her financial situation, investment objective and needs.
|
December 2006
|
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Parrott, Kristi Ann
|
Arlington, Texas
|
Barred
|
She prepared correct bank slips for deposit of her member firm's daily receipts into various accounts at the firm's clearing firm but transmitted false electronic lists to the clearing firm to divert approximately $23,168.70 into her personal account, which she quickly withdrew by check or ATM. The findings also stated that Parrott accomplished the diversion of funds by falsifying the amounts of deposit to her account, duplicating the amount of deposit to her account on the electronic list, or by listing fictitious deposits to her account on the electronic list. NASD also found that to conceal her conduct, Parrott used other employees' electronic IDs when transmitting fraudulent electronic lists to the clearing firm and destroyed copies of the relevant deposit slips.
|
January 2005
|
|
Parsells, Kevin W.
|
Merganville, New Jersey
|
Complaint Filed
|
Named in an NASD complaint alleging that he effected transactions on margin in the account of a public customer without the customer's prior knowledge, authorization, or consent. The complaint further alleged that Parsells failed to place a stop loss on a public customer's stocks, as requested by the customer.
|
June 2005
|
|
Parsons,
David Wayne
|
Baldwin,
New York
|
Barred
|
He actively participated in the unlawful
sales of unregistered securities to public customers. The findings also
stated that Parsons reviewed and approved a fraudulent press release designed
to artificially increase the price of a stock.
|
December
2005
|
|
Partain,
John Bailey
|
Philadelphia,
Pennsylvania
|
Barred
|
Partain effected electronic transfers totaling $6,000 out of public customers' bank accounts, transferred the funds to his personal bank account without the customers' authorization or consent, and converted the funds for his own purposes. The findings stated that Partain failed to respond to NASD requests for information.
|
June 2006
|
|
Paruch, Robert Sean (Jr.)
|
Bay Harbor Island, Florida
|
Barred
|
Paruch offered and sold shares of common stock to public customers when there was no registration statement filed or in effect with the SEC with respect to the common stocks as required by Section 5 of the Securities Act of 1933, and the transactions were not exempt from registration requirements. The findings stated that Paruch engaged in acts operating as a fraud or deceit in connection with the purchase or sale of securities. The findings also stated that Paruch misused public customers' funds intended to pay for their stock purchases and solicited investors to purchase securities without the benefit of a general securities representative registration.
|
March, 2007
|
|
Pasinkovsky, Roman
|
Brooklyn, New York
|
Barred
|
Pursuant to NASD Rule 9552(h)
|
January
2006
|
|
Passarella, Frank Anthony
|
Mineola, New York
|
Barred
|
He directly or indirectly, by the use of the means or instrumentalities of interstate commerce or of the mails, knowingly or recklessly used or employed, in connection with the purchase or sale of securities, manipulative or deceptive devices or contrivances; and knowingly or recklessly effected transactions in, or induced the purchase or sale of, securities by means of manipulative, deceptive, or other fraudulent devices or contrivances. The findings also included that Passarella recommended transactions in securities without having reasonable grounds for believing such transactions were suitable in light of the size and frequency of the transactions, the nature of the account, and the customer's financial situation and needs. In addition, NASD found that Passarella effected transactions in the accounts of public customers without their prior knowledge, authorization, or consent.
|
June 2005
|
|
Pasternak, Kenneth
|
|
Complaint Filed
|
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.
|
April 2005
|
|
Paruch, Robert Sean (Jr.)
|
Bay Harbor Island, Florida
|
Barred
|
Paruch offered and sold shares of common stock to public customers when there was no registration statement filed or in effect with the SEC with respect to the common stocks as required by Section 5 of the Securities Act of 1933, and the transactions were not exempt from registration requirements. The findings stated that Paruch engaged in acts operating as a fraud or deceit in connection with the purchase or sale of securities. The findings also stated that Paruch misused public customers' funds intended to pay for their stock purchases and solicited investors to purchase securities without the benefit of a general securities representative registration.
|
March, 2007
|
|
Patel,
Jygnesh Rohit
|
Glenview,
Illinois
|
Barred
|
He misrepresented to a public customer that
a securities account would be opened for the customer into which $50,000 of
the customer’s investment funds would be deposited and carried, and that the
investment would be protected by his member firm’s fidelity bond and other
insurance. The findings also stated that Patel created and sent to the
customer a purported account statement from his firm falsely showing that the
customer’s funds had been deposited into an account in his name at the firm.
NASD found that Patel failed to open a securities account for the customer at
this firm and failed to deposit the customer’s funds in the account.
|
September
2005
|
|
Patel, Sangam Ramesh
|
San Jose, California
|
Barred
|
Barred Pursuant to NASD Rule 9552(h).
|
June 2006
|
|
Paterno, Kelly P.
|
Deerfield Beach, Florida
|
2-Year Suspension
|
He engaged in fraudulent and deceptive devices and contrivances involving trading in stocks through the use of instrumentalities of interstate commerce, the mails, or a facility of any national securities exchange. The findings state that Paterno, acting through his member firm, failed to act with reasonable diligence to ascertain the best inter-dealer market for the subject securities and failed to act diligently to ensure that the prices paid by the customers were as favorable as possible under the prevailing market conditions at the time. In addition, NASD found that that Paterno has never been registered with NASD in any capacity, but functioned as an equity trader for the firm by entering and reporting trades on behalf of the firm, determining when and how to execute trades, directing trades to market makers or the firm's clearing firm, and conducting proprietary trades for the firm. The findings also included that the firm, acting through Paterno, failed to make and preserve order tickets for the transactions as required by Rules 17a-3 and 17a-4.
|
June 2005
|
|
Patel, Sangam Ramesh
|
San Jose, California
|
Barred
|
Barred Pursuant to NASD Rule 9552(h).
|
June 2006
|
|
Patrick, Masajji Edward
|
Chicago, Illinois
|
Barred
|
Patrick converted $57,500 from a public customer's account without the customer's consent and deposited the funds into bank accounts he created in fictitious persons' names. The findings stated that Patrick consolidated the funds into one of the fictitious accounts and drafted a $50,000 check drawn on the account payable to Patrick's relative. The findings stated that Patrick failed to respond to NASD requests for information.
|
July 2007
|
|
Patrick,
Robert Christopher
|
Ronkonkoma,
New York
|
Complaint
Filed
|
He effected transactions in the accounts of
public customers without the customer’s prior knowledge, authorization or
consent.
|
October
2005
|
|
Patten, James Thomas
|
Bernardsville, New Jersey
|
Barred
|
Without admitting or denying the allegations, the respondents consented to the described sanctions and to the entry of findings that the firm and Patten, directly or indirectly, by use of means or instrumentalities of interstate commerce, intentionally or recklessly employed a device, scheme or artifice to defraud, or engaged in an act, practice or course of business that operated or would operate as a fraud or deceit in connection with the purchase or sale of a security, in that they manipulated the price of a stock. The findings stated that the firm and Patten falsely marked many customer order tickets as unsolicited orders when, in fact, they had solicited customers to buy or sell the stock. The findings also stated that the respondents countenanced a supervisory system that did not apply or monitor procedures with regard to Patten's trading activities, and thereby failed to establish, maintain or enforce a system to supervise the activities of each of the firm's registered representatives and associated persons reasonably designed to achieve compliance with applicable securities laws, regulations and NASD rules. The findings also included that the firm's written supervisory procedures contained inadequate or non-existent procedures relating to compliance with anti-fraud, anti-manipulation and recordkeeping provisions of securities laws, regulations and NASD rules. NASD also found that Dalvi failed to establish, maintain and enforce written procedures designed to achieve compliance with anti-fraud and recordkeeping provisions of securities laws, regulations and NASD rules.
|
August 2006
|
|
Patter, Thomas
|
Bedminster, New Jersey
|
Complaint Filed
|
Named as a respondent in an NASD complaint alleging that they entered matching and crossing trades between sellers and buyers, each of which was the firm's customer, in order to artificially and arbitrarily raise the price of a security. The complaint also alleges that the firm and Patten, directly or indirectly, by use of means or instrumentalities of interstate commerce, intentionally or recklessly employed a device, scheme or artifice to defraud or engaged in an act, practice or course of business that operated or would operate as a fraud or deceit in connection with the purchase or sale of a security. The complaint further alleges that the firm and Patten published or circulated communications which purported to report transactions in a security when they did not believe, or had no reasonable basis to believe, that the transactions were bona fide securities purchase or sales. In addition, the complaint alleges that the firm and Patten improperly marked customer buy and sell order tickets as unsolicited orders when in fact they has solicited the customers to buy or sell the securities. Moreover, the complaint alleges that the firm and Patten countenanced a supervisory system that, in practice, did not apply or monitor procedures with regard to Patten's trading activities and thereby failed to establish, maintain or enforce a system to supervise the activities of each representative and associated person reasonably designed to achieve compliance with applicable securities laws, regulations and NASD rules.
|
August 2006
|
|
Patterson, Scott Douglas
|
Memphis, Tennessee
|
Barred
|
Patterson forged a public customer's signature on documents necessary to effect the disbursements from a trust account and to effect the switch of the proceeds from one annuity to another. The findings stated that Patterson failed to respond to NASD requests for testimony.
|
September, 2006
|
|
Patton, Andrew James
|
Fort Collins, Colorado
|
Complaint Filed
|
He made material misrepresentations of fact in selling long-term callable CDs to public customers in order to induce the customers, purchases. The complaint also alleges that Patton inappropriately exercised the death-put feature of a CD and caused the issuer to bear the loss, in that the death-put feature was invalid under the terms of the certificate of deposit because the account did not hold the CD at the time of the account owner's death.
|
March 2005
|
|
Patton, David Frederick
|
Goliad, Texas
|
Barred
|
Pursuant to NASD Rule 9552(h)
|
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