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1
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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
SECURITIES MCCLOSKEY EXCHANGE EXCHANGE ACT COMMISSION ACCOUNTS FRAUDULENT SCHEME CUSTOMER VIOLATIONS SETTLEMENTS COMPLAINT SENIOR MANAGERS BROKER-DEALER ALLEGES DIVERT RECORDKEEPING PROVISIONS ASSETS PROPOSED ADMINISTRATIVE PROCEEDING DEALER INVESTMENT LITIGATION EUGENE MCCLOSKEY CHARLES DISTRICT FEDERAL SECURITIES LAWS ENTRY DISGORGE BARRING FIRST FRAUDULENT SCHEME |
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
LITIGATION RELEASE NO. 15767 / June 4, 1998
ACCOUNTING AND AUDITING ENFORCEMENT
RELEASE NO. 1040 / June 4, 1998
SECURITIES AND EXCHANGE COMMISSION v. EUGENE McCLOSKEY AND CHARLES
MEIZOSO,
No. 98 Civ. 3943 ( MBM ) (S.D.N.Y. filed June 4, 1998)
The Securities and Exchange Commission ("Commission") today filed
a
complaint in the United States District Court for the Southern District
of
New York against Eugene McCloskey ("McCloskey") and Charles Meizoso
("Meizoso"), former senior managers of Gruntal & Co., Incorporated
("Gruntal"), a registered broker-dealer. The Commission alleges that -
in
connection with two fraudulent schemes to divert securities and funds
totaling approximately $11 million from customer accounts, unclaimed
dividends, stale and outstanding customer and vendor checks, and other
sources at Gruntal -- McCloskey and Meizoso violated antifraud and
corporate recordkeeping provisions of the federal securities laws, and
aided and abetted violations of the broker-dealer recordkeeping
provisions
of the federal securities laws. Without admitting or denying any of
the
allegations in the complaint, except as to jurisdiction, McCloskey and
Meizoso each consented to the entry of a final judgment, which the
judge
today signed, (1) permanently enjoining him from (a) violating Section
17(a) of the Securities Act of 1933, Sections 10(b) and 13(b)(5) of
the
Securities Exchange Act of 1934 ("Exchange Act"), and Exchange Act
Rules
10b-5 and 13b2-1, and (b) aiding and abetting violations of Section
17(a)
of the Exchange Act and Exchange Act Rules 17a-3 and 17a-4; (2)
SNIPPETS:
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