SEC v JOSEPH J. BARBATO - Legal Case Documents


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SEC v JOSEPH J. BARBATO

Keywords & Phrases

CaseNo: 34-41034, Defendant: Joseph J. Barbato, Plaintiff: SEC, State: WA Washington, UniqueCaseRef: SEC>34-41034, Barbato, Stock, Account, Recommendations, Securities, Customers, Exchange Act, Commission, Price, Violation, Cedar Group, Stuart-james, Proceeding, Broker, Price Predictions, Material Misrepresentations, Thereunder, Unsuitable Recommendations, Penny Stock, Spangenberg, Fraudulent, Meadow Group, Investment Objectives, National Media, Future Violation, Europa Cruises, Former Registered Broker-dealer, Participating, Penny Stock Offering, Order Salesman , ContentID: 120247195

Case Documents

1999-02-10

SEC COMMISSION OPINION
[ see first page and extracted highlights below ] ItemID: 117345

23 pages
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Total Documents: 1 document , 23 pages

Price: $ 19.95

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1 . SEC COMMISSION OPINION

EXTRACTED KEY WORDS

STOCK
ACCOUNT
RECOMMENDATIONS
SECURITIES
CUSTOMERS
EXCHANGE ACT
COMMISSION
PRICE
VIOLATION
CEDAR GROUP
STUART-JAMES
PROCEEDING
BROKER
PRICE PREDICTIONS
MATERIAL MISREPRESENTATIONS
THEREUNDER
UNSUITABLE RECOMMENDATIONS
PENNY STOCK
SPANGENBERG
FRAUDULENT
MEADOW GROUP
INVESTMENT OBJECTIVES
NATIONAL MEDIA
FUTURE VIOLATION
EUROPA CRUISES
FORMER REGISTERED BROKER-DEALER
PARTICIPATING
PENNY STOCK OFFERING
ORDER SALESMAN

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

SECURITIES ACT OF 1933
Rel. No. 7638 / February 10, 1999

   SECURITIES EXCHANGE ACT OF 1934
   Rel. No. 41034 / February 10, 1999

   Admin. Proc. File No. 3-8575
     _________________________________________________________________

   In the Matter of
   JOSEPH J. BARBATO
   867 Normandy Trace Road
   Tampa, FL 33602
     _________________________________________________________________

   OPINION OF THE COMMISSION

   BROKER-DEALER PROCEEDINGS

   Grounds for Remedial Action

   Fraud in Offer and Sale of Securities

   Salesman of former registered broker-dealer made fraudulent price
   predictions, material misrepresentations and omissions, and unsuitable
   recommendations, in addition to churning the account of a customer.
   Held, it is in the public interest to bar salesman from association
   with any broker or dealer or from participating in any penny stock
   offering; order salesman to cease and desist from committing or
   causing any violation or future violation of Section 17(a) of the
   Securities Act of 1933, Section 10(b) of the Securities Exchange Act
   of 1934, and Rule 10b-5 thereunder; and order salesman to disgorge
   $45,142.20, plus prejudgment interest.

   APPEARANCES

   Howard A. Tescher, of Kipnis Tescher Lippman Valinsky & Kain, for
   Joseph J. Barbato.

   William H. Kuehnle and Nancy E. McGinley, for the Commission's
   Division of Enforcement.

   Appeal filed December 3, 1996
   Last brief received April 24, 1997
   Oral argument October 27, 1998

SNIPPETS:

SECURITIES AND EXCHANGE COMMISSION

Salesman of former registered broker-dealer made fraudulent price predictions, material

Held, it is in the public interest to bar salesman from association with any broker or dealer

Howard A. Tescher, of Kipnis Tescher Lippman Valinsky & Kain, for Joseph J. Barbato.

We bar Barbato from association with any broker or dealer and from participating in any penny

We further assess disgorgement in the amount of $45,142, based on the particular facts

Barbato joined Stuart-James as a registered representative in its Altamonte Springs, Florida

As we explain below, we find that Barbato engaged in violations with respect to the offer and

During the period at issue, the securities of three of these companies -- Meadow Group, Inc.,

National Media was a direct marketer of health, beauty, and self-improvement products and

Cedar Group was engaged in the business of importing and distributing metal fasteners, and

Camacho stated that his investment objectives for the IRA were "long term growth with safety."

Ted Spangenberg was a civil engineer when he opened his Stuart-James account in 1986 in


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