UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act of 1934
Release No. 41309 / April 19, 1999
Administrative Proceeding
File No. 3-9876
______________________________ ORDER INSTITUTING
: ADMINISTRATIVE PROCEEDINGS
In the Matter of : PURSUANT TO SECTIONS 15(b)
: AND 19(h) OF THE SECURITIES
Robert Grady, : EXCHANGE ACT OF 1934,
Respondent. : MAKING FINDINGS, AND IMPOSING
: REMEDIAL SANCTIONS
:
:
______________________________:
I.
The Securities and Exchange Commission ("Commission")
deems it appropriate and in the public interest that
administrative proceedings pursuant to Sections 15(b) and 19(h)
of the Securities Exchange Act of 1934 ("Exchange Act") be
instituted against respondent Robert Grady ("Grady").
II.
In anticipation of the institution of these
proceedings, Grady has submitted an Offer of Settlement
("Offer"), which the Commission has determined is in the public
interest to accept. Solely for the purpose of this proceeding,
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 set forth herein, except as to
paragraph III.A.1. below, which Grady admits, and the
jurisdiction of the Commission over him and over the matters set
forth in this Order Instituting Administrative Proceedings
Pursuant To Sections 15(b) And 19(h) Of The Securities Exchange
Act Of 1934, Making Findings, And Imposing Remedial Sanctions
("Order"), which Grady also admits, Grady consents to the entry
of the findings and the imposition of the sanctions set forth
below.
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission deems it appropriate and in the public interest that
In anticipation of the institution of these proceedings, Grady has submitted an Offer of
Solely for the purpose of this proceeding, and any other proceeding brought by or on behalf
below, which Grady admits, and the jurisdiction of the Commission over him and over the
Act Of 1934, Making Findings, And Imposing Remedial Sanctions, which Grady also admits, Grady
Grady, age 65, was a principal and fifty percent owner of Grady & Hatch & Co., Inc. from June
This matter arises from Grady's failure reasonably to supervise a trader at Grady & Hatch
From May 5 through at least July 20, 1993, the trader manipulated the price of RMS Titanic
The trader set the initial price based solely upon the directions of a major shareholder and
Grady failed reasonably to supervise the trader by failing to review his trading in RMS
As the Commission has explained, "he president of a corporate broker-dealer is responsible
In re O'Neal, Exchange Act Release No. 34116, 56 SEC Docket 2447, 2456.
At a minimum, to discharge his responsibilities for ensuring the trader's compliance with the
Effective immediately following the period of his suspension from association, Grady be, and
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