UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 43350 / September 26, 2000
ADMINISTRATIVE PROCEEDING
File No. 3-10304
In the Matter of
Signal Securities, Inc.,
Ivan Jerry Singleton,
and Richard E. Bennett,
Respondents.
ORDER INSTITUTING PROCEEDINGS, MAKING FINDINGS, AND IMPOSING REMEDIAL
SANCTIONS
I.
The Securities and Exchange Commission (Commission) deems it
appropriate in the public interest and for the protection of investors
that public administrative proceedings be, and hereby are, instituted
pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of
1934 (Exchange Act) against Signal Securities, Inc. (Signal or the
Firm), Ivan Jerry Singleton (Singleton), and Richard E. Bennett
(Bennett).
In anticipation of the institution of these proceedings, Signal,
Singleton and Bennett have submitted an Offer of Settlement (Offer) to
the Commission, which the Commission has determined to accept.
Solely for the purpose of these proceedings and any other proceedings
brought by or on behalf of the Commission, or in which the Commission
is a party, and without admitting or denying the findings contained
herein, except those contained in paragraph II.A. and the jurisdiction
of the Commission over Respondents and the subject matter of these
proceedings, Signal, Singleton, and Bennett consent to the issuance of
this Order Instituting Proceedings, Making Findings and Imposing
Remedial Sanctions, and to the entry of the findings set forth below.
II.
On the basis of this Order and the Offer submitted by Signal,
Singleton, and Bennett, the Commission finds that
A. THE RESPONDENTS
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
ADMINISTRATIVE PROCEEDING
Signal Securities, Inc., Ivan Jerry Singleton, and Richard E. Bennett,
The Securities and Exchange Commission deems it appropriate in the public interest and for
and the jurisdiction of the Commission over Respondents and the subject matter of these
Signal's compliance department was responsible for recommending policy changes and
This matter arises from the failure of Signal, Singleton, and Bennett reasonably to supervise
Cammarano misappropriated over $2 million of customer funds invested with CAI and its
Signal lacked adequate supervisory and compliance procedures and failed adequately to
In particular, Signal's policies and procedures failed adequately to provide for heightened
As a result of these deficiencies, Signal failed to heighten its supervision of Cammarano,
Despite Cammarano's history, however, Bennett failed adequately to respond and investigate
On January 19, 1999, Cammarano and CAI were permanently enjoined from future violations of
Signal's written supervisory procedures failed to clearly assign supervisory responsibilities
"It is critical for investor protection that a broker establish and enforce effective
B.Signal shall, within 90 days of the issuance of this Order, pay a civil money penalty in
Such payment shall be 1) made by United States postal money order, certified check, bank
gs, a copy of which cover letter and money order or check shall be sent to Harold F. Degenhardt,
The Independent Consultant shall conduct a review of Signal's supervisory, compliance, and
The Initial Report shall address the adequacy of Signal's policies and procedures to detect
|
