UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 43349 / September 26, 2000
ADMINISTRATIVE PROCEEDING
File No. 3-10026
In the Matter of
FIRST COLONIAL SECURITIES GROUP,
INC., MICHAEL E. GOLDEN, and
STEVEN D. SCHWARTZ
Respondent.
ORDER MAKING FINDINGS AND
IMPOSING REMEDIAL SANCTIONS
I.
On September 23, 1999, the Securities and Exchange Commission
instituted public administrative proceedings pursuant to Sections
15(b) and 19(h) of the Securities Exchange Act of 1934 against First
Colonial Securities Group, Inc. ("First Colonial"), Michael E. Golden
("Golden") and Steven D. Schwartz ("Schwartz").
In response to the institution of these administrative proceedings,
First Colonial, Golden and Schwartz have submitted an Offer of
Settlement, which the Commission has determined to accept. Solely for
the purposes 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
as to the jurisdiction of the Commission over them and the subject
matter of the proceedings, which are admitted, Respondents First
Colonial, Golden and Schwartz consent to the issuance of this Order
Making Findings and Imposing Remedial Sanctions ("Order").
II.
On the basis of this Order and the Offer submitted by First Colonial,
Golden and Schwartz, the Commission makes the following findings
A. First Colonial Securities Group, Inc. ("First Colonial") has been
registered with the Securities and Exchange Commission ("Commission")
as a broker-dealer pursuant to Section 15(b) of the Securities
Exchange Act of 1934 ("Exchange Act") since 1989. Its headquarters
were in Marlton, New Jersey from 1989 until mid-1998 when it moved to
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
STEVEN D. SCHWARTZ
Solely for the purposes of these proceedings and any other proceedings brought by or on
Michael E. Golden is First Colonial's president, chief executive officer, and controlling
From its inception in 1989 to 1998, First Colonial had grown from one office in Marlton, New
First Colonial hired registered representatives who already controlled office space in remote
Many of these offices were designated as Offices of Supervisory Jurisdiction.
During this entire period and despite this expansion, First Colonial's compliance department
The compliance officer spent the remainder of his time servicing his own retail customers,
As a principal of the OSJ in Hazleton, Tommassello was responsible for supervising seven
In October 1995, he had been permitted to resign from his previous employer, a registered
Tommassello then deposited these funds into bank accounts which he controlled and used the
On February 26, 1998, the Commission filed an emergency civil action against Tommassello and
From approximately November 1995 through February 1998, First Colonial, Golden and Schwartz
Failed to devote adequate resources to First Colonial's supervision and compliance framework
IT IS HEREBY ORDERED that
shall, within 30 days of the entry of this Order, pay a civil money penalty in the amount of
Such payment shall be made by United States postal money order, certified check, bank
cover letter and money order or check shall be sent to Ronald C.
Long, District Administrator, Securities and Exchange Commission, The Curtis Center, Suite
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