UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act of 1934
Release No. 41417 / May 18, 1999
Administrative Proceedings
File No. 3-9901
____________________________________
:
In The Matter Of : ORDER INSTITUTING PUBLIC
: ADMINISTRATIVE
PROCEEDINGS,
DATEK ONLINE BROKERAGE : MAKING FINDINGS,
IMPOSING
SERVICES CORP. and : REMEDIAL SANCTIONS AND
MOISHE ZELCER, : ISSUING CEASE-AND-DESIST
: ORDER
Respondents. :
____________________________________:
I.
The Securities and Exchange Commission ("Commission") deems
it appropriate and in the public interest that public
administrative proceedings be instituted against Datek Online
Brokerage Services Corp. ("Datek") and Moishe Zelcer ("Zelcer")
pursuant to Sections 15(b), 19(h) and 21C of the Securities
Exchange Act of 1934 ("Exchange Act"). Accordingly, it is hereby
ordered that proceedings pursuant to Sections 15(b), 19(h) and
21C of the Exchange Act be, and hereby are, instituted.
II.
In anticipation of the institution of these proceedings,
Datek and Zelcer have submitted Offers of Settlement ("Offers"),
which the Commission has determined to accept. Solely for the
purpose of these proceedings and any other proceeding 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 for the jurisdiction of the Commission over it and
over the subject matter of these proceedings, which are admitted,
both Datek and Zelcer consent to the entry of the findings, a
cease and desist order, and the imposition of the remedial
sanctions set forth herein.
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission deems it appropriate and in the public interest that
Accordingly, it is hereby ordered that proceedings pursuant to Sections 15, 19and 21C of the
In anticipation of the institution of these proceedings, Datek and Zelcer have submitted
Solely for the purpose of these proceedings and any other proceeding brought by or on behalf
As will be described below, while conducting its online trading business, Datek has violated
The deposit of this excess amount of funds in the Reserve Bank Account ensures that the
Additionally, on 11 other days during the period between March 9, 1998 and May 8, 1998, Datek
Exchange Act Rule 15c3-3requires a brokerdealer to record a reserve formula computation for
Exchange Act Rule 15c3-3requires a brokerdealer to determine the daily amount of customer
Datek’s Violations of the Record Keeping and Notice Provisions
Datek’s net capital computation was incorrect in that Datek: i) understated its aggregate
Exchange Act Rule 17a-11requires a registered broker-dealer to notify the Commission and the
From June 4, 1998 through June 30, 1998, Datek failed to provide the Commission staff with
made by United States postal money order, certified check, bank cashier’s check, or bank
The Committee will be comprised of the following Datek personnel: Chief Financial Officer,
Within 30 days of the date of this Order, Datek shall employ an independent consultant,
f Rules 15c3-3, 17a-3, 17a-4, 17a-5, and 17a-11 described in this Order, to conduct a review of any
es, or procedures which the Independent Consultant believes are necessary to provide reasonable
Such Independent Consultant shall be entitled, to the extent that he or she deems
No later than three months from the date that Datek employs the Independent Consultant, the
this Order.
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