UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16047 / January 27, 1999
SECURITIES AND EXCHANGE COMMISSION v. LARRY F. SMATH,
GREGORY R. SALVAGE, JOSEPH T. FALCONE, PETER L. COHEN, SETH
J. GLASER and FRANK ZANGARA, CV-99-523 (E.D.N.Y.)(TCP)
NEW YORK-- The Securities and Exchange Commission filed an
action in
federal court in Brooklyn, New York today alleging that five
stockbrokers and a foreman at a magazine distribution
facility engaged in an insider trading scheme involving
nonpublic advance copies of the Inside Wall Street column of
Business Week magazine. The source of the nonpublic Inside
Wall Street columns was a foreman at Hudson News Company
("Hudson News"), a wholesale and retail distributor of
newspapers and magazines, who provided the nonpublic Inside
Wall Street columns to one of the brokers in exchange for
cash payments. The insider trading scheme took place from
June 1995 to January 1996.
Named in the Commission’s Complaint were:
Larry F. Smath, age 42, a resident of Levittown, New York.
During the time of the illegal conduct, Smath was employed
at Renaissance Financial Securities Corp. ("Renaissance"), a
now defunct broker-dealer that was located in Mineola, New
York.
Gregory R. Salvage, age 43, a resident of Levittown, New
York and a foreman at Hudson News in North Bergen, New
Jersey.
Joseph T. Falcone, age 39, a resident of Old Bethpage, New
York. During the time of the illegal conduct, Falcone was
employed by Prudential Securities, Inc., a registered
broker-dealer located in Melville, New York. Falcone is
currently employed by Times Securities Services, Inc., a
registered broker-dealer located in Melville, New York.
Peter L. Cohen, age 33, a resident of Plainview, New York.
During the time of the illegal conduct, Cohen was employed
by Renaissance. Cohen is currently employed by J.B. Sutton
Group, LLC, a registered broker-dealer located in Great
Neck, New York.
Seth J. Glaser, age 29, a resident of Levittown, New York.
SNIPPETS:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Business Week magazine.
Wall Street columns was a foreman at Hudson News Company
cash payments.
The insider trading scheme took place from
Named in the Commission’s Complaint were:
Larry F. Smath, age 42, a resident of Levittown, New York.
Gregory R. Salvage, age 43, a resident of Levittown, New
Joseph T. Falcone, age 39, a resident of Old Bethpage, New
registered broker-dealer located in Melville,
by Renaissance.
Seth J. Glaser, age 29, a resident of Levittown, New York.
Jersey City, New Jersey.
Frank Zangara, age 36, a resident of Hicksville, New York.
Tasin & Co., Inc.
Complaint alleges that Cohen, Glaser, Falcone and Zangara
securities while in possession of the nonpublic information
the Inside Wall Street columns to their customers,
defendants violated the antifraud provisions of the federal
seeking permanent injunctions against future violations of
United States Attorney’s Office for the Eastern District of
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