SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
SECURITIES EXCHANGE ACT OF 1934
Rel. No. 41813 / August 31, 1999
Admin. Proc. File No. 3-9700
_________________________________________________________________
JACOB ADONI
c/o Michael R. Koblenz, Esq.
Mound, Cotton & Wollan
One Battery Park Plaza
New York, NY 10004-1486
For Review of Action Taken by the
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
_________________________________________________________________
OPINION OF THE COMMISSION
REGISTERED SECURITIES ASSOCIATION -- REVIEW OF DENIAL OF MEMBER'S
APPLICATION FOR ASSOCIATION
Registered securities association, after considering an individual's
statutory disqualification resulting from the entry of a permanent
injunction, denied member firm's application to retain its membership
if it employed the individual as a registered representative. Held, as
the injunction did not relate to conduct or practice in connection
with the purchase or sale of any security, association's action set
aside.
Appearances
Michael R. Koblenz and David W. Kenna, of Mound, Cotton & Wollan, for
Jacob Adoni.
Alden S. Adkins, Susan L. Beesley, and Shannon V. Lane, for NASD
Regulation, Inc.
Appeal filed September 4, 1998
Last brief received December 23, 1998
I.
Jacob Adoni appeals from the denial by the National Association of
Securities Dealers, Inc. ("NASD") of an application by Whitehall
Wellington Investments, Inc. ("Whitehall") to remain an NASD member if
Adoni becomes associated with the firm. The NASD denied
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
Registered securities association, after considering an individual's statutory
Held, as the injunction did not relate to conduct or practice in connection with the purchase
Michael R. Koblenz and David W. Kenna, of Mound, Cotton & Wollan, for Jacob Adoni.
Jacob Adoni appeals from the denial by the National Association of Securities Dealers, Inc.
In March 1997, the United States District Court for the District of New Jersey entered a
The injunctive action involved Adoni's conduct as the president, chief executive officer, and
The complaint alleged that, in December 1992, Victor Douenias, Simone's operations officer,
This practice required Simone to generate and maintain two kinds of invoices the invoices
The complaint alleged that Adoni knew of this practice and violated the securities laws by
Simone, as a company with shares registered under Section 12of the Exchange Act, was required
However, the complaint in the injunctive action did not allege, and the record does not
The NASD contends that Simone's improper characterization of revenue, which was the basis for
In a letter dated May 19, 1998, NASD's department of Member Regulation informed Whitehall
heightened supervision the review and approval of any business conducted by Adoni for a customer as
Section 15includes injunctions that prohibit a person from acting as a securities or
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