SEC v CASTLE SECURITIES CORP and MICHAEL T. STUDER


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Keywords & Phrases

CaseNo: 34-39523, Defendant: Castle Securities Corp and Michael T. Studer, Plaintiff: SEC, State: WA Washington, UniqueCaseRef: SEC>34-39523, Castle, Studer, Nasd, Securities, Violations, Markups, Manipulation, Firm, Sanctions, Exchange Act, Supervisory, Reshone Common Stock, Excessive Markups, Disciplinary Action, Securities Dealers, Supervisory Procedures, Commission, National Association, Registered Securities, Fraudulent Markups, Common Stock, Supervisory System, Responsibilities, National Committee, Castle Securities Corporation, Applicants, Retail Customers, Compliance, Fair Practice, Member Firm , ContentID: 120247244

Case Documents

1998-01-07

SEC COMMISSION OPINION
[ see first page and extracted highlights below ] ItemID: 117394

19 pages
TXT

Total Documents: 1 document , 19 pages

Price: $ 19.95

IVESLCD01 KGI0001

1 . SEC COMMISSION OPINION

EXTRACTED KEY WORDS

STUDER
NASD
SECURITIES
VIOLATIONS
MARKUPS
MANIPULATION
FIRM
SANCTIONS
EXCHANGE ACT
SUPERVISORY
RESHONE COMMON STOCK
EXCESSIVE MARKUPS
DISCIPLINARY ACTION
SECURITIES DEALERS
SUPERVISORY PROCEDURES
COMMISSION
NATIONAL ASSOCIATION
REGISTERED SECURITIES
FRAUDULENT MARKUPS
COMMON STOCK
SUPERVISORY SYSTEM
RESPONSIBILITIES
NATIONAL COMMITTEE
CASTLE SECURITIES CORPORATION
APPLICANTS
RETAIL CUSTOMERS
COMPLIANCE
FAIR PRACTICE
MEMBER FIRM






                          SECURITIES AND EXCHANGE COMMISSION
                                   Washington, D.C.

     SECURITIES EXCHANGE ACT OF 1934
     Rel. No. 39523 / January 7, 1998

     Admin. Proc. File No. 3-9188
     __________________________________________________
                                                       :
          In the Matter of the Application of          :
                                                       :
             CASTLE SECURITIES CORPORATION             :
             45 Church Street, Suite 25                :
                 Freeport, NY 11520                    :
                                                       :
                         and                           :
                                                       :
                 MICHAEL T. STUDER                     :
                 410 McDermott Road                    :
               Rockville Centre, NY 11570              :
                                                       :
     For Review of Disciplinary Action Taken by the    :
                                                       :
     NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.  :
     __________________________________________________:

     OPINION OF THE COMMISSION

          REGISTERED SECURITIES ASSOCIATION -- REVIEW OF DISCIPLINARY
          PROCEEDINGS

               Violations of Rules of Fair Practice

                    Manipulation
                    Excessive and Fraudulent Markups
                    Failure to Supervise

          Member firm of registered securities association engaged in a
          manipulation and charged excessive and fraudulent markups.  The
firm
          and its president failed to establish adequate supervisory
procedures
          and supervisory system to detect and prevent manipulation and

SNIPPETS:

SECURITIES AND EXCHANGE COMMISSION

Violations of Rules of Fair Practice

Member firm of registered securities association engaged in a manipulation and charged

The firm and its president failed to establish adequate supervisory procedures and

association's findings of violation and the sanctions it imposed are sustained.

Alden Adkins and Norman Sue, Jr., for NASD Regulation, Inc.

Castle Securities Corporation, a member of the National Association of Securities Dealers,

T. Studer, its president and treasurer, appeal from NASD disciplinary action.

Rules of Fair Practice and Section 10of the Securities Exchange Act of 1934 and Exchange Act

The NASD also found that Studer and the Firm failed to establish, implement, and enforce

In November 1991, Kevin Malone, a Castle branch manager, asked Studer to list Castle as a

Castle continued to sell Reshone stock to retail customers at $9 per share through March 1992.

Applicants do not suggest that another

The National Committee explained that Castle was liable for these violations by virtue of its

each registered representative and associated person a system of supervision, including

he assigned to Michael P. Galterio the responsibilities of Castle's compliance officer.


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