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BrokerCheck Report
INVEMED ASSOCIATES LLC
Section Title
Report Summary
Firm History
CRD# 6728
1
6
Firm Profile 2 - 5
Page(s)
Firm Operations 7 - 12
Disclosure Events 13
About BrokerCheck®
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INVEMED ASSOCIATES LLC
CRD# 6728
SEC# 8-18082
Main Office Location
375 PARK AVENUESUITE 2205NEW YORK, NY 10152-0189Regulated by FINRA New York Office
Mailing Address
375 PARK AVENUESUITE 2205NEW YORK, NY 10152-0189
Business Telephone Number
(212) 421-2500
Report Summary for this Firm
This report summary provides an overview of the brokerage firm. Additional information for this firm can be foundin the detailed report.
Disclosure Events
Brokerage firms are required to disclose certaincriminal matters, regulatory actions, civil judicialproceedings and financial matters in which the firm orone of its control affiliates has been involved.
Are there events disclosed about this firm? Yes
The following types of disclosures have beenreported:
Type Count
Regulatory Event 2
Firm Profile
This firm is classified as a limited liability company.
This firm was formed in New York on 03/01/1999.
Its fiscal year ends in June.
Firm History
Information relating to the brokerage firm's historysuch as other business names and successions(e.g., mergers, acquisitions) can be found in thedetailed report.
Firm Operations
Is this brokerage firm currently suspended with anyregulator? No
This firm conducts 4 types of businesses.
This firm is not affiliated with any financial orinvestment institutions.
This firm has referral or financial arrangements withother brokers or dealers.
This firm is registered with:
• the SEC• 3 Self-Regulatory Organizations• 43 U.S. states and territories
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This firm is classified as a limited liability company.
This firm was formed in New York on 03/01/1999.
CRD#
This section provides the brokerage firm's full legal name, "Doing Business As" name, business and mailingaddresses, telephone number, and any alternate name by which the firm conducts business and where such name isused.
Firm Profile
Firm Names and Locations
Its fiscal year ends in June.
INVEMED ASSOCIATES LLC
SEC#
6728
8-18082
Main Office Location
Mailing Address
Business Telephone Number
Doing business as INVEMED ASSOCIATES LLC
(212) 421-2500
Regulated by FINRA New York Office
375 PARK AVENUESUITE 2205NEW YORK, NY 10152-0189
375 PARK AVENUESUITE 2205NEW YORK, NY 10152-0189
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This section provides information relating to all direct owners and executive officers of the brokerage firm.
Direct Owners and Executive Officers
Firm Profile
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
INVEMED SECURITIES, INC.
MEMBER
75% or more
No
Domestic Entity
04/1987
Yes
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
BARAN, JOHN STANLEY
MANAGER/SENIOR VP/ CFO/CCO/SECRETARY
Less than 5%
No
Individual
09/1996
Yes
1563209
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
Position
Percentage of Ownership
Position Start Date
LANGONE, KENNETH GERARD
MANAGER/PRESIDENT
Less than 5%
Individual
07/1974
302133
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
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Direct Owners and Executive Officers (continued)
Firm Profile
Percentage of Ownership
Is this a public reportingcompany?
Does this owner direct themanagement or policies ofthe firm?
Less than 5%
No
Yes
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This section provides information relating to any indirect owners of the brokerage firm.
Indirect Owners
Firm Profile
LANGONE, KENNETH GERARD
CHAIRMAN & PRESIDENT
INVEMED SECURITIES, INC.
75% or more
No
Individual
04/1987
Yes
302133
Legal Name & CRD# (if any):
Is this a domestic or foreignentity or an individual?
Company through whichindirect ownership isestablished
Relationship to Direct Owner
Relationship Established
Percentage of Ownership
Does this owner direct themanagement or policies ofthe firm?
Is this a public reportingcompany?
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Firm History
This section provides information relating to any successions (e.g., mergers, acquisitions) involving the firm.
03/29/1999Date of Succession:
This firm was previously:
Predecessor SEC#:
INVEMED ASSOCIATES, INC.
8-18859
6728Predecessor CRD#:
Description INVEMED ASSOCIATES, INC. ("INVEMED"), AN EXISTING BROKER-DEALER,UNDERWENT A CORPORATE REORGANIZATION EFFECTIVE THECLOSE MARCH 29, 1999. AS A RESULT OF THIS REORGANIZATION,INVEMED WAS RESTRUCTURED AS A LIMITED LIABILITY COMPANY, ANDWILL OPERATE UNDER THE SAME INVEMED ASSOCIATES LLC ("LLC").THERE WAS NO CHANGE IN THE NATURE OF THE BUSINESS, THESUPERVISORY PERSONNEL, OR THE ULTIMATE OWNERSHIP ANDCONTROL OF THE BUSINESS PREVIOUSLY CONDUCTED BY INVEMEDWHICH NOW IS CONDUCTED BY LLC.
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Firm Operations
RegistrationsThis section provides information about the regulators (Securities and Exchange Commission (SEC), self-regulatoryorganizations (SROs), and U.S. states and territories) with which the brokerage firm is currently registered andlicensed, the date the license became effective, and certain information about the firm's SEC registration.
This firm is currently registered with the SEC, 3 SROs and 43 U.S. states and territories.
SEC Registration Questions
This firm is registered with the SEC as:
A broker-dealer:
A broker-dealer and government securities broker or dealer:
A government securities broker or dealer only:
This firm has ceased activity as a government securities broker or dealer:
Yes
No
No
No
Federal Regulator Status Date Effective
SEC Approved 07/03/1974
Self-Regulatory Organization Status Date Effective
FINRA Approved 08/14/1974
Nasdaq Stock Market Approved 07/12/2006
New York Stock Exchange Approved 11/17/1982
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Firm Operations
Registrations (continued)
U.S. States &Territories
Status Date Effective
Alabama Approved 11/15/1990
Arizona Approved 01/10/1995
California Approved 04/22/1999
Colorado Approved 11/07/1991
Connecticut Approved 12/16/1974
Delaware Approved 01/08/1986
District of Columbia Approved 04/24/1991
Florida Approved 04/27/1983
Georgia Approved 06/17/1985
Hawaii Approved 08/17/1999
Idaho Approved 03/29/1996
Illinois Approved 05/20/1975
Indiana Approved 05/21/1992
Iowa Approved 03/28/1996
Kansas Approved 01/24/1996
Kentucky Approved 05/25/1995
Louisiana Approved 03/25/1996
Maine Approved 01/04/1994
Maryland Approved 01/03/1984
Massachusetts Approved 07/06/1987
Michigan Approved 05/25/1999
Minnesota Approved 09/28/1993
Mississippi Approved 04/25/1995
Missouri Approved 10/28/1992
Nevada Approved 04/12/1996
New Hampshire Approved 01/16/1991
New Jersey Approved 07/13/1983
New Mexico Approved 12/11/1990
New York Approved 01/02/1985
North Carolina Approved 08/23/1982
Ohio Approved 03/15/1984
Oklahoma Approved 10/28/1993
Pennsylvania Approved 09/15/1977
U.S. States &Territories
Status Date Effective
Rhode Island Approved 03/19/1996
South Carolina Approved 04/04/1995
Tennessee Approved 10/23/1990
Texas Approved 07/22/1983
Utah Approved 03/04/1996
Vermont Approved 02/13/1991
Virginia Approved 08/16/1990
Washington Approved 07/21/1993
West Virginia Approved 03/05/1996
Wisconsin Approved 10/22/1992
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Firm Operations
Types of BusinessThis section provides the types of business, including non-securities business, the brokerage firm is engaged in orexpects to be engaged in.
Other Types of Business
This firm does not effect transactions in commodities, commodity futures, or commodity options.This firm does not engage in other non-securities business.
Non-Securities Business Description:
This firm currently conducts 4 types of businesses.
Types of Business
Exchange member engaged in exchange commission business other than floor activities
Broker or dealer retailing corporate equity securities over-the-counter
Trading securities for own account
Other - VARIOUS INVESTMENTS IN LIMITED PARTNERSHIPS/CORPORATIONS FOR OWN ACCOUNT.
PAYMENTS RECEIVED FOR BROKERAGE SERVICES RENDERED INCLUDING GIVING INVESTMENT ADVICEAND ARRANGING MEETINGS WTIH CORPORATE EXECUTIVES.
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Firm Operations
Clearing Arrangements
This firm does not hold or maintain funds or securities or provide clearing services for other broker-dealer(s).
Introducing Arrangements
This firm does refer or introduce customers to other brokers and dealers.
Name: NATIONAL FINANCIAL SERVICES LLC
Business Address: 200 SEAPORT BLVDBOSTON, MA 02210
CRD #: 13041
Effective Date: 04/08/2015
Description: INVEMED ASSOCIATES INTRODUCES ITS CUSTOMERS TO NATIONALFINANCIAL SERVICES LLC ON A FULLY DISCLOSED ARRANGEMENT.
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Firm Operations
Industry Arrangements
This firm does have books or records maintained by a third party.
This firm does have accounts, funds, or securities maintained by a third party.
This firm does have customer accounts, funds, or securities maintained by a third party.
This firm does not have individuals who control its management or policies through agreement.
This firm does not have individuals who wholly or partly finance the firm's business.
Control Persons/Financing
Name: NATIONAL FINANCIAL SERVICES LLC
Business Address: 200 SEAPORT BLVD.BOSTON, MA 02210
CRD #: 13041
Effective Date: 04/08/2015
Description: INVEMED ASSOCIATES INTRODUCES ITS CUSTOMERS TO NATIONALFINANCIAL SERVICES LLC ON A FULLY DISCLOSED ARRANGEMENT.
Name: NATIONAL FINANCIAL SERVICES LLC
Business Address: 200 SEAPORT BLVDBOSTON, MA 02210
CRD #: 13041
Effective Date: 04/08/2015
Description: INVEMED ASSOCIATES INTRODUCES ITS CUSTOMERS TO NATIONALFINANCIAL SERVICES LLC ON A FULLY DISCLOSED ARRANGEMENT.
Name: NATIONAL FINANCIAL SERVICES LLC
Business Address: 200 SEAPORT BLVD.BOSTON, MA 02210
CRD #: 13041
Effective Date: 04/08/2015
Description: INVEMED ASSOCIATES INTRODUCES ITS CUSTOMERS TO NATIONALFINANCIAL SERVICES LLC ON A FULLY DISCLOSED ARRANGEMENT.
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Firm Operations
Organization AffiliatesThis section provides information on control relationships the firm has with other firms in the securities, investmentadvisory, or banking business.
This firm is not, directly or indirectly:
· in control of· controlled by· or under common control withthe following partnerships, corporations, or other organizations engaged in the securities or investmentadvisory business.
This firm is not directly or indirectly, controlled by the following:
· bank holding company· national bank· state member bank of the Federal Reserve System· state non-member bank· savings bank or association· credit union· or foreign bank
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Disclosure Events
All firms registered to sell securities or provide investment advice are required to disclose regulatory actions, criminal orcivil judicial proceedings, and certain financial matters in which the firm or one of its control affiliates has been involved.For your convenience, below is a matrix of the number and status of disclosure events involving this brokerage firm orone of its control affiliates. Further information regarding these events can be found in the subsequent pages of thisreport.
Final On AppealPending
Regulatory Event 0 2 0
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Disclosure Event Details
What you should know about reported disclosure events:
1. BrokerCheck provides details for any disclosure event that was reported in CRD. It also includessummary information regarding FINRA arbitration awards in cases where the brokerage firm wasnamed as a respondent.
2. Certain thresholds must be met before an event is reported to CRD, for example: o A law enforcement agency must file formal charges before a brokerage firm is required to disclose a
particular criminal event.3. Disclosure events in BrokerCheck reports come from different sources:
o Disclosure events for this brokerage firm were reported by the firm and/or regulators. When the firmand a regulator report information for the same event, both versions of the event will appear in theBrokerCheck report. The different versions will be separated by a solid line with the reporting sourcelabeled.
4. There are different statuses and dispositions for disclosure events: o A disclosure event may have a status of pending, on appeal, or final.
§ A "pending" event involves allegations that have not been proven or formally adjudicated.§ An event that is "on appeal" involves allegations that have been adjudicated but are currently
being appealed.§ A "final" event has been concluded and its resolution is not subject to change.
o A final event generally has a disposition of adjudicated, settled or otherwise resolved.§ An "adjudicated" matter includes a disposition by (1) a court of law in a criminal or civil matter,
or (2) an administrative panel in an action brought by a regulator that is contested by the partycharged with some alleged wrongdoing.
§ A "settled" matter generally involves an agreement by the parties to resolve the matter.Please note that firms may choose to settle customer disputes or regulatory matters forbusiness or other reasons.
§ A "resolved" matter usually involves no payment to the customer and no finding ofwrongdoing on the part of the individual broker. Such matters generally involve customerdisputes.
5. You may wish to contact the brokerage firm to obtain further information regarding any of thedisclosure events contained in this BrokerCheck report.
Regulatory - Final
This type of disclosure event involves (1) a final, formal proceeding initiated by a regulatory authority (e.g., a statesecurities agency, self-regulatory organization, federal regulator such as the U.S. Securities and Exchange Commission,foreign financial regulatory body) for a violation of investment-related rules or regulations; or (2) a revocation orsuspension of the authority of a brokerage firm or its control affiliate to act as an attorney, accountant or federalcontractor.
Disclosure 1 of 2
Reporting Source: Regulator
Allegations: NASD CONDUCT RULES 2110 AND 3010, AND NASD MARKETPLACE RULE6955(A) - RESPONDENT INVEMED ASSOCIATES LLC, THROUGH ITSREPORTING AGENT, FAILED TO TIMELY REPORT TO OATS REPORTABLEORDER EVENTS ("ROES"). THE FIRM'S SUPERVISORY SYSTEM DID NOTPROVIDE FOR SUPERVISION REASONABLY DESIGNED TO ACHIEVECOMPLIANCE WITH RESPECT TO THE APPLICABLE SECURITIES LAWS ANDREGULATIONS, AND WITH NASD RULES CONCERNING OATS RULES. .SPECIFICALLY, THE FIRM'S SUPERVISORY SYSTEM DID NOT INCLUDEWRITTEN SUPERVISORY PROCEDURES PROVIDING FOR: (1) THEIDENTIFICATION OF THE PERSON(S) RESPONSIBLE FOR SUPERVISIONWITH RESPECT TO OATS RULES; (2) A STATEMENT OF THE SUPERVISORYSTEP(S) TO BE TAKE BY THE IDENTIFIED PERSON(S); (3) A STATEMENT ASTO HOW OFTEN SUCH PERSON(S) SHOULD TAKE SUCH STEP(S); AND (4) ASTATEMENT AS TO HOW THE COMPLETION OF THE STEP(S) INCLUDE INTHE WRITTEN SUPERVISORY PROCEDURES SHOULD BE DOCUMENTED.
Current Status: Final
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Initiated By: NASD
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 07/16/2004
Docket/Case Number: CMS040099
Principal Product Type: Other
Other Product Type(s): UNSPECIFIED SECURITIES PRODUCT
Allegations: NASD CONDUCT RULES 2110 AND 3010, AND NASD MARKETPLACE RULE6955(A) - RESPONDENT INVEMED ASSOCIATES LLC, THROUGH ITSREPORTING AGENT, FAILED TO TIMELY REPORT TO OATS REPORTABLEORDER EVENTS ("ROES"). THE FIRM'S SUPERVISORY SYSTEM DID NOTPROVIDE FOR SUPERVISION REASONABLY DESIGNED TO ACHIEVECOMPLIANCE WITH RESPECT TO THE APPLICABLE SECURITIES LAWS ANDREGULATIONS, AND WITH NASD RULES CONCERNING OATS RULES. .SPECIFICALLY, THE FIRM'S SUPERVISORY SYSTEM DID NOT INCLUDEWRITTEN SUPERVISORY PROCEDURES PROVIDING FOR: (1) THEIDENTIFICATION OF THE PERSON(S) RESPONSIBLE FOR SUPERVISIONWITH RESPECT TO OATS RULES; (2) A STATEMENT OF THE SUPERVISORYSTEP(S) TO BE TAKE BY THE IDENTIFIED PERSON(S); (3) A STATEMENT ASTO HOW OFTEN SUCH PERSON(S) SHOULD TAKE SUCH STEP(S); AND (4) ASTATEMENT AS TO HOW THE COMPLETION OF THE STEP(S) INCLUDE INTHE WRITTEN SUPERVISORY PROCEDURES SHOULD BE DOCUMENTED.
Resolution Date: 07/16/2004
Resolution:
Other Sanctions Ordered: UNDERTAKING.
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT FIRMCONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OFFINDINGS; THEREFORE, FIRM IS CENSURED, FINED $8,000, AND REQUIREDTO UNDERTAKE TO REVISE ITS WRITTEN SUPERVISORY PROCEDURESWITH RESPECT TO APPLICABLE SECURITIES LAWS AND REGULATIONSCONCERNING OATS RULES WITHIN 30 BUSINESS DAYS.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $8,000.00
Acceptance, Waiver & Consent(AWC)
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WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT FIRMCONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OFFINDINGS; THEREFORE, FIRM IS CENSURED, FINED $8,000, AND REQUIREDTO UNDERTAKE TO REVISE ITS WRITTEN SUPERVISORY PROCEDURESWITH RESPECT TO APPLICABLE SECURITIES LAWS AND REGULATIONSCONCERNING OATS RULES WITHIN 30 BUSINESS DAYS.
iReporting Source: Firm
Initiated By: NASD
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 07/16/2004
Docket/Case Number: CMS040099
Principal Product Type: Equity - OTC
Other Product Type(s):
Allegations: NASD CONDUCT RULES 2110 AND 3010, AND NASD MARKETPLACE RULE6955(A)-RESPONDENT INVEMED ASSOCIATES LLC, THROUGH ITSREPORTING AGENT, FAILED TO TIMELY REPORT TO OATS REPORTABLEORDER EVENTS.THE NASD STATED THAT THE FIRM'S SUPERVISORYSYSTEM DID NOT PROVIDE FOR SUPERVISION REASONABLY DESIGNEDTO ACHIEVE COMPLIANCE WITH APPLICABLE SECURITIES LAWS ANDNASD RULES CONCERNING OATS RULES.
Current Status: Final
Resolution Date: 07/16/2004
Resolution:
Other Sanctions Ordered: UNDERTAKING
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT FIRMCONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OFFINDINGS; THEREFORE, FIRM IS CENSURED, FINED $8,000, ANDREQUESTED TO UNDERTAKE TO REVISE ITS WRITTEN SUPERVISORYPROCEDURES.
Sanctions Ordered: CensureMonetary/Fine $8,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 2 of 2
i
Reporting Source: Regulator
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Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 05/31/1983
Docket/Case Number: NY-2082
Principal Product Type:
Other Product Type(s):
Allegations:
Current Status: Final
Resolution Date: 09/26/1984
Resolution:
Other Sanctions Ordered:
Sanction Details:
Regulator Statement COMP #NY-2082, FILED 5/31/83, DIST. #12, ALLEGING VIOLATIONS OFARTICLE III, SECTION 1 IF THE RULES OF FAIR PRACTICE -RESPONDENTS MEMBER, KENNETH G. LANGONE, PAUL R. STANDEL ANDCRISTINA D. LAHEY, SOLD UNITS OF A NEW PUBLIC OFFERING WHICHTRADED AT AN IMMEDIATE PREMIUM IN THE SECONDARY MARKET TO ANUMBER OF RESTRICTED ACCOUNTS; RESPONDENTS LANGONE,STANDEL,LAHEY, JAMES T. RAU, GERARD F. BELL AND JAMES R. FRANKENTHALERPURCHASED FOR THEIR OWN ACCOUNTS SHARES OF SAID OFFERING;RESPONDENT ROBERT S. PIRIE PURCHASED THRU THE MEMBER SHARESOFSAID OFFERING FOR HIS OWN ACCOUNT AND THE ACCOUNT OF HISDEPENDENT CHILDREN; AND, RESPONDENT ARTHUR K. CALCAGNINIPURCHASED THRU THE MEMBER FOR HIS OWN ACCOUNT SHARES OFSAIDNEW OFFERING, ALL IN CONTRAVENTION OF THE B/G'S INTERPRETATIONWITH RESPECT TO FREE-RIDING AND WITHHOLDING.****DECISIONRENDERED 9/26/84, WHEREIN THE OFFER OF SETTLEMENT SUBMITTED BYTHE RESPONDENTS WAS ACCEPTED; THEREFORE, RESPONDENTMEMBER ISCENSURED, RESPONDENTS MEMBER, LANGONE AND STANDEL ARE FINED$4,000, J&S, LANGONE IS CENSURED AND DIRECTED TO DISGORGE TOTHE ASSOCIATION THE IMPUTED PROFIT OF $12,400, STANDEL ISCENSURED AND DIRECTED TO DISGORGE TO THE ASSOCIATION THEIMPUTED PROFIT OF $12,400, BELL IS CENSURED AND FINED $500 ANDDIRECTED TO DISGORGE TO THE ASSOCIATION THE IMPUTED PROFIT OF$2,800, FRANKENTHALER IS CENSURED, FINED $500 AND DIRECTED TODISGORGE TO THE ASSOCIATION THE IMPUTED PROFIT OF $1,600,LAHEY IS CENSURED, FINED $1,000 AND DIRECTED TO DISGORGE TO THEASSOCIATION THE IMPUTED PROFIT OF $4,800, RAU IS CENSURED, FINED$500 AND DIRECTED TO DISGORGE TO THE ASSOCIATION THE IMPUTEDPROFIT OF $2,800, PIRIE IS FINED $400 AND DIRECTED TO DISGORGETO THE ASSOCIATION THE IMPUTED PROFIT OF $9,600, AND CALCAGNINIIS DIRECTED TO DISGORGE TO THE ASSOCIATION THE IMPUTED PROFITOF$16,000. ALL RIGHTS OF APPEAL AND REVIEW HAVE BEEN WAIVED, THISDECISION WAS FINAL 9/26/84. ****12/3/84, FC# 8909, PAID IN FULL.
Sanctions Ordered: CensureMonetary/Fine $4,000.00
Consent
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COMP #NY-2082, FILED 5/31/83, DIST. #12, ALLEGING VIOLATIONS OFARTICLE III, SECTION 1 IF THE RULES OF FAIR PRACTICE -RESPONDENTS MEMBER, KENNETH G. LANGONE, PAUL R. STANDEL ANDCRISTINA D. LAHEY, SOLD UNITS OF A NEW PUBLIC OFFERING WHICHTRADED AT AN IMMEDIATE PREMIUM IN THE SECONDARY MARKET TO ANUMBER OF RESTRICTED ACCOUNTS; RESPONDENTS LANGONE,STANDEL,LAHEY, JAMES T. RAU, GERARD F. BELL AND JAMES R. FRANKENTHALERPURCHASED FOR THEIR OWN ACCOUNTS SHARES OF SAID OFFERING;RESPONDENT ROBERT S. PIRIE PURCHASED THRU THE MEMBER SHARESOFSAID OFFERING FOR HIS OWN ACCOUNT AND THE ACCOUNT OF HISDEPENDENT CHILDREN; AND, RESPONDENT ARTHUR K. CALCAGNINIPURCHASED THRU THE MEMBER FOR HIS OWN ACCOUNT SHARES OFSAIDNEW OFFERING, ALL IN CONTRAVENTION OF THE B/G'S INTERPRETATIONWITH RESPECT TO FREE-RIDING AND WITHHOLDING.****DECISIONRENDERED 9/26/84, WHEREIN THE OFFER OF SETTLEMENT SUBMITTED BYTHE RESPONDENTS WAS ACCEPTED; THEREFORE, RESPONDENTMEMBER ISCENSURED, RESPONDENTS MEMBER, LANGONE AND STANDEL ARE FINED$4,000, J&S, LANGONE IS CENSURED AND DIRECTED TO DISGORGE TOTHE ASSOCIATION THE IMPUTED PROFIT OF $12,400, STANDEL ISCENSURED AND DIRECTED TO DISGORGE TO THE ASSOCIATION THEIMPUTED PROFIT OF $12,400, BELL IS CENSURED AND FINED $500 ANDDIRECTED TO DISGORGE TO THE ASSOCIATION THE IMPUTED PROFIT OF$2,800, FRANKENTHALER IS CENSURED, FINED $500 AND DIRECTED TODISGORGE TO THE ASSOCIATION THE IMPUTED PROFIT OF $1,600,LAHEY IS CENSURED, FINED $1,000 AND DIRECTED TO DISGORGE TO THEASSOCIATION THE IMPUTED PROFIT OF $4,800, RAU IS CENSURED, FINED$500 AND DIRECTED TO DISGORGE TO THE ASSOCIATION THE IMPUTEDPROFIT OF $2,800, PIRIE IS FINED $400 AND DIRECTED TO DISGORGETO THE ASSOCIATION THE IMPUTED PROFIT OF $9,600, AND CALCAGNINIIS DIRECTED TO DISGORGE TO THE ASSOCIATION THE IMPUTED PROFITOF$16,000. ALL RIGHTS OF APPEAL AND REVIEW HAVE BEEN WAIVED, THISDECISION WAS FINAL 9/26/84. ****12/3/84, FC# 8909, PAID IN FULL.
iReporting Source: Firm
Initiated By: NASD
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 05/31/1983
Docket/Case Number: NY-2082
Principal Product Type: Equity - OTC
Other Product Type(s):
Allegations: VIOLATION OF NASD BOARD OF GOVERNOR'S INTERPRETATION OF FREE-RIDING AND WITHHOLDING UNDER ARTICLE III, SECTION I OF THE RULESOF FAIR PRACTICE IN CONNECTION WITH THE UNDERWRITING OF VITALMETRICS, INC.
Current Status: Final
Appealed To and Date AppealFiled:
NASD
Resolution Date: 09/26/1984
Resolution:
Sanctions Ordered: CensureMonetary/Fine $4,000.00
Decision & Order of Offer of Settlement
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Other Sanctions Ordered:
Sanction Details: INVEMED ASSOCIATES, INC. WAS CENSURED, FINED AND PAID (JOINTLYAND SEVERALLY WITH KENNETH LANGONE) IN THE AMOUNT OF $4,000.
Firm Statement INVEMED ASSOCIATES, INC. RECEIVED CLEARANCE FROM VITAL METRICS,INC.'S ATTORNEYS (WHO HAD DISCUSSIONS WITH THE NASD)THATEMPLOYEES COULD PARTICIPATE IN THE ORIGINAL UNDERWRITING ASLONG AS THIS FACT WAS REFLECTED IN THE PROSPECTUS. HOWEVER,THE NASD SUBSEQUENTLY PROPOSED PENALTIES AS WELL ASDISGORGEMENT OF THE IMPUTED PROFITS.
Sanctions Ordered: CensureMonetary/Fine $4,000.00
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