SEC Sues Former Heartland
- Thread starter brad1970
- Start date
Heartland Securities, Brokers to Pay $70 Mln to Settle Charges
By Neil Roland
Washington, Jan. 14 (Bloomberg) -- Heartland Securities Corp., a day trading firm, and four brokers with its predecessor firm, Datek Securities Corp., agreed to pay $70 million to settle securities fraud charges.
The Securities and Exchange Commission alleged that Sheldon Maschler, Erik Maschler, Jeffrey Citron, and Michael McCarty executed millions of illegal proprietary trades on the Nasdaq Stock Market's Small Order Execution System. The defendants hid their fraud from 1993 to 2001 by creating fictitious books and filing false regulatory reports, the SEC said.
Sheldon Maschler agreed to pay $29.2 million in penalties and Citron $22.5 million, among the largest regulatory penalties ever assessed against individuals, the SEC said.
By Neil Roland
Washington, Jan. 14 (Bloomberg) -- Heartland Securities Corp., a day trading firm, and four brokers with its predecessor firm, Datek Securities Corp., agreed to pay $70 million to settle securities fraud charges.
The Securities and Exchange Commission alleged that Sheldon Maschler, Erik Maschler, Jeffrey Citron, and Michael McCarty executed millions of illegal proprietary trades on the Nasdaq Stock Market's Small Order Execution System. The defendants hid their fraud from 1993 to 2001 by creating fictitious books and filing false regulatory reports, the SEC said.
Sheldon Maschler agreed to pay $29.2 million in penalties and Citron $22.5 million, among the largest regulatory penalties ever assessed against individuals, the SEC said.
or maybe the choice was pay $70mill or sit in prison and be someone's beeeeaaaatch for 5yrs...I'd pay.
the story is true.here's the link
http://www.sec.gov/news/press/2003-5.htm
i have a problem with this.
The SEC comes along, with the cooperation of the NASD (which is made up of dealers, whose edge the 'SOES Bandits' took), and manages to take back 70 million of the dollars the dealers lost in a competitive marketplace.
I can't say that I'm convinced justice was done. Especially since the conduct that earned penalties one year -- trading for the firm's own account -- was blessed the next. It almost seems like the establishment came out on top. Again.
The SEC comes along, with the cooperation of the NASD (which is made up of dealers, whose edge the 'SOES Bandits' took), and manages to take back 70 million of the dollars the dealers lost in a competitive marketplace.
I can't say that I'm convinced justice was done. Especially since the conduct that earned penalties one year -- trading for the firm's own account -- was blessed the next. It almost seems like the establishment came out on top. Again.
Here is a link to a good summary of the story:
http://www.traderbulletin.com/stories/storyReader$242
http://www.traderbulletin.com/stories/storyReader$242
