SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
SECURITIES EXCHANGE ACT OF 1934
Rel. No. 40726 / November 30, 1998
Admin. Proc. File No. 3-8510
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:
In the Matter of :
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ADRIAN C. HAVILL :
:
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OPINION OF THE COMMISSION
BROKER-DEALER PROCEEDING
Grounds for Remedial Action
Aiding, Abetting, and Causing Manipulation
Person associated with a registered broker-dealer aided,
abetted, and caused a manipulation effected by his customer.
Held, it is in the public interest to suspend respondent
from association with any broker or dealer for a period of
two months and to order respondent to cease and desist from
committing or causing any violation or future violation of
the antifraud and antimanipulation provisions of the federal
securities laws and rules thereunder.
APPEARANCES:
Adrian C. Havill, pro se.
David S. Horowitz and Merri Jo Gillette, for the Division of
Enforcement.
Appeal filed: November 20, 1995
Last brief filed: January 23, 1996
Oral argument held: June 9, 1997
I.
Adrian C. Havill, formerly a registered representative with
Scott & Stringfellow, Inc. ("SSI" or the "Firm"), appeals from
the decision of an administrative law judge. The law judge found
that, from August 1989 to January 1990, Havill aided, abetted,
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
BROKER-DEALER PROCEEDING
Aiding, Abetting, and Causing Manipulation
Person associated with a registered broker-dealer aided,
it is in the public interest to suspend respondent
securities laws and rules thereunder.
Adrian C. Havill, formerly a registered representative with Scott & Stringfellow, Inc.,
The law judge found that, from August 1989 to January 1990, Havill aided, abetted, and caused
He also ordered Havill to cease and desist from committing or causing any future violations
Broumas' Schemes.
He owned some 190,000 shares of JML Class A common stock, which was listed on the American
Broumas would purchase small amounts of JML on the AMEX and the Midwest Stock Exchange at or
54 were the last trade of the day and 47 of these trades were executed on an uptick.
Broumas' trades raised the closing price of JML stock by 1/8.
Broumas was aware that certain brokerage firms with which he dealt limited margin
Broumas' marking-the-close transactions bolstered the equity in his margin accounts and
He therefore arranged over-the-counter wash trades of JML stock between various accounts that
When Havill joined SSI in August 1989, Broumas opened two margin accounts with Havill at the
Of these 31 trades, 29 were the last trade of the day, 25 were executed on an uptick, and 6
Havill relayed this information to his SSI branch manager,
Section 9of the Exchange Act specifically prohibits transactions that create the appearance
We conclude that Broumas willfully violated Sections 9and 10of the Exchange Act and Rule
the law judge ordered that Havill be suspended from registration with a broker or dealer for
ORDERED that Havill cease and desist from committing or causing any violation or any future
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