SEC v HARRISON SECURITIES, INC., et al


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Keywords & Phrases

CaseNo: 34-47641, Defendant: Harrison Securities, Inc., Frederick C. Blumer and Nebrissa Song Release No.: AAER-1754, Plaintiff: SEC, State: NY New York, UniqueCaseRef: SEC>34-47641, Harrison, Blumer, Violations, Song, Reports, Exchange Act, Finop, Alleges, Books, Securities, Broker-dealer, Instituting, Liabilities, Financial Reporting, Order Instituting, Hsi, Commission, Accounting, Division Alleges, Focus Reports, Transferring, Thereunder, Failing, According, Preparation, Principles, Respondents, Compliance, Transferring Funds, Cash , ContentID: 120255838

Case Documents

2003-04-07

SEC ADMINISTRATIVE PROCEEDING
[ see first page and extracted highlights below ] ItemID: 133128

3 pages
HTML

Total Documents: 1 document , 3 pages

Price: $ 19.95

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1 . SEC ADMINISTRATIVE PROCEEDING

EXTRACTED KEY WORDS

BLUMER
VIOLATIONS
SONG
REPORTS
EXCHANGE ACT
FINOP
ALLEGES
BOOKS
SECURITIES
BROKER-DEALER
INSTITUTING
LIABILITIES
FINANCIAL REPORTING
ORDER INSTITUTING
HSI
COMMISSION
ACCOUNTING
DIVISION ALLEGES
FOCUS REPORTS
TRANSFERRING
THEREUNDER
FAILING
ACCORDING
PREPARATION
PRINCIPLES
RESPONDENTS
COMPLIANCE
TRANSFERRING FUNDS
CASH

U.S. Securities and Exchange Commission

Securities Exchange Act of 1934
Release No. 47641 / April 7, 2003

Accounting and Auditing Enforcement
Release No. 1754 / April 7, 2003

Administrative Proceeding
File No. 3-11084

ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDING INSTITUTED AGAINST HARRISON
SECURITIES, INC., FREDERICK C. BLUMER AND NEBRISSA SONG ALLEGING
BROKER-DEALER NET CAPITAL, RECORD-KEEPING AND FINANCIAL REPORTING VIOLATIONS

   The Securities and Exchange Commission announced that it instituted
   public administrative and cease-and-desist proceedings against a
   broker-dealer, the principal of the broker-dealer, and a FINOP for
   repeated violations of the net capital, books-and-records, and
   financial reporting provisions of the Securities Exchange Act. Named
   as respondents in the proceeding are
     * Harrison Securities, Inc., a Port Washington, New York based
       broker-dealer;

     * Frederick C. Blumer, Harrison's CEO, compliance officer and sole
       shareholder;

     * Nebrissa Song, Harrison's FINOP (Financial and Operations
       Principal) from December 3, 2001 through April 30, 2002; and

   A hearing will be held before an administrative law judge to determine
   whether the allegations against Harrison, Blumer and Song are true,
   and, if so, what remedial action, if any, is appropriate.

The Proceeding Against Harrison, Blumer, and Song

   The Division of Enforcement alleges in the Order Instituting
   Proceedings that on at least 22 occasions from April 2001 through
   April 2002, Harrison conducted a securities business while not
   maintaining sufficient net capital, and that on at least three
   occasions Harrison filed false FOCUS reports. The Division alleges
   that Blumer, a CPA, willfully aided and abetted and caused the firm's
   violations, and that Song, for the period in which she served as
   Harrison's FINOP, caused certain of the firm's violations.

   More specifically, the Division alleges that Blumer aided and abetted
   and caused Harrison's violations by
     * Transferring funds into Harrison from HSI, Inc. -- an unregulated

SNIPPETS:

U.S. Securities and Exchange Commission

Accounting and Auditing Enforcement

ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDING INSTITUTED AGAINST HARRISON SECURITIES, INC.,

The Securities and Exchange Commission announced that it instituted public administrative and

Named as respondents in the proceeding are * Harrison Securities, Inc., a Port Washington,

Proceedings that on at least 22 occasions from April 2001 through April 2002, Harrison

The Division alleges that Blumer, a CPA, willfully aided and abetted and caused the firm's

More specifically, the Division alleges that Blumer aided and abetted and caused Harrison's

* Improperly recording deposits in Harrison's cash receipts blotter prior to the actual

* Improperly accruing Harrison's expenses either by not accruing an expense when it was

Blumer improperly removed liabilities by purporting to transfer them to HSI.

Blumer transferred approximately the same amount from the firm to HSI and removed the tax

* Failing to deduct haircut and, when appropriate, undue concentration charges in calculating

According to the Order Instituting Proceedings, Blumer aided and abetted and caused

With respect to Song, the Order alleges that, as Harrison's registered FINOP from December 3,

By operating without sufficient net capital, Harrison allegedly violated Section 15of the


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