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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
RUSSO COMMISSION SECURITIES PAY CIVIL PENALTIES BROKER-DEALER YORK EXCHANGE COMMISSION FEDERAL COURT FIRM VIOLATIONS PROCEEDING ORDERED RUSSO DISTRICT ORDER FINDING NET CAPITAL RULES CLAIMING COMMIT SUSPENDED KENT CEASE OBLIGATION ORDER REQUIRING BUSINESS UNITED STATES DISTRICT STATES DISTRICT JUDGE DISTRICT JUDGE MILTON JUDGE MILTON POLLACK SOUTHERN DISTRICT ORDER DIRECTING RUSSO |
Securities and Exchange Commission
Litigation Release No. 17834 /November 12, 2002
, Docket No. M 18-304 (S.D.N.Y.)
The Securities and Exchange Commission today filed an application in
federal court in Manhattan for an order commanding a brokerage firm
and a former financial principal of the firm to pay civil penalties
that were imposed against them in an earlier administrative proceeding
before the Commission. Section 21(e) of the Securities Exchange Act of
1934 gives federal courts the power to enforce administrative orders
issued by the Commission.
Named in today's proceeding are Russo Securities, Inc., a registered
broker-dealer located in Staten Island, New York, and Kimberly Kent,
age 39 and a resident of New York, New York, Russo's former financial
and operations principal.
On April 17, 2001, the Commission issued an order finding that Russo
Securities violated the net capital rules applicable to broker-dealers
by claiming to own securities that did not yet exist, and that Kent
caused the firm to commit those violations. In that order, the
Commission (1) suspended Kent from association with any broker-dealer
for one year; (2) ordered Russo and Kent to cease and desist from such
violations; and (3) ordered Russo to pay a civil penalty of $75,000
and Kent to pay a civil penalty of $25,000. The Commission stayed the
obligation to pay the civil penalties while Russo and Kent pursued an
appeal in federal court. After Russo and Kent abandoned their appeal
earlier this year, the Commission issued an order requiring both Russo
and Kent to pay the civil penalties within ten business days. Neither
Russo nor Kent complied with that order.
United States District Judge Milton Pollack of the Southern District
of New York today issued an order directing Russo and Kent to appear
at a hearing on the Commission's application on November 26, 2002 and
show cause why the Commission's application should not be granted.
_________________________________________________________________
Modified 11/13/2002
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