UNITED STATES OF AMERICA
|In the Matter of
BERTHA AYALA and
|ORDER INSTITUTING PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS PURSUANT TO SECTIONS 15(b) AND 21C OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS AND A CEASE-AND-DESIST ORDER|
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative and cease-and-desist proceedings be instituted against Maritza Galle ("Galle") and Bertha Ayala ("Ayala") pursuant to Sections 15(b) and 21C of the Securities Exchange Act of 1934 ("Exchange Act").
In anticipation of the institution of these proceedings, Galle and Ayala have submitted Offers of Settlement (the "Offers"), which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying any of the findings contained herein, except as to the jurisdiction of the Commission over them and over the subject matter of these proceedings, which are admitted, and Section III.1., below, which Galle admits, and Section III.2., below, which Ayala admits, Galle and Ayala consent to the entry of this Order Instituting Public Administrative and Cease-and-Desist Proceedings Pursuant to Sections 15(b) and 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order ("Order"), by the Commission.
Accordingly, IT IS HEREBY ORDERED that proceedings pursuant to Sections 15(b) and 21C of the Exchange Act be, and hereby are, instituted.
On the basis of this Order and the Offers submitted by Respondents Galle and Ayala, the Commission finds that:
1. Respondent Galle, age 34, resides in Hialeah, Florida. From November 1997 to June 1998, Galle was associated as an unregistered representative of Investment Street Company, Inc. ("Investment Street"), a broker-dealer registered with the Commission pursuant to Section 15(b) of the Exchange Act. From November 1997 to June 1998, Galle was also associated as an unregistered representative of Dynamic Trading of Miami, Inc. ("Dynamic"), an unregistered broker-dealer.
2. Respondent Ayala, age 28, resides in Miami, Florida. From November 1997 to August 1998, Ayala was associated as an unregistered representative of Investment Street. From November 1997 to August 1998, Ayala was also associated as an unregistered representative of Dynamic.
3. At all relevant times, Investment Street held itself out to the public as a day trading firm and provided direct access to the securities markets to approximately 50 day trading customers.1 While they were associated with Investment Street, Galle and Ayala, who did not hold securities licenses and who were not registered with any national securities association, traded the accounts of several of Investment Street's clients. Using Investment Street's facilities and computer software, Galle and Ayala engaged in day trading for at least six securities accounts controlled by one of Investment Street's directors, either individually or jointly with others, and maintained at Investment Street.
4. In addition to handling funds and securities for the accounts of others, Galle and Ayala, on behalf of Dynamic, performed administrative services for Investment Street (with which Dynamic shared office space and equipment).
5. As a result of the conduct described above, Galle and Ayala willfully violated, and committed or caused violations of, Section 15(a) of the Exchange Act, in that they made use of the means and instruments of transportation and communications in interstate commerce and of the mails to effect transactions in, and to induce and attempt to induce the purchase of, certain securities for the accounts of others, without being registered with the Commission as a broker or dealer.
6. Respondent Galle has submitted a sworn financial statement and other evidence and has asserted her sworn financial inability to pay a civil penalty. The Commission has reviewed the sworn financial statement provided by Galle and has determined that she does not have the financial ability to pay a civil penalty.
On the basis of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in the Offers submitted by Respondents Galle and Ayala.
ACCORDINGLY, IT IS ORDERED that:
1. Galle and Ayala be, and hereby are, suspended from association with any broker or dealer for a period of 90 days, effective on the second Monday following the entry of the Order.
2. Galle and Ayala cease and desist, pursuant to Section 21C of the Exchange Act, from committing or causing any violation and any future violation of Section 15(a) of the Exchange Act.
3. Ayala shall, within 30 days of the entry of this Order, pay a civil money penalty in the amount of $5,500 to the United States Treasury. Such payment shall be: (A) made by United States postal money order, certified check, bank cashier's check or bank money order; (B) made payable to the Securities and Exchange Commission; (C) hand-delivered or mailed to the Comptroller, Securities and Exchange Commission, Operations Center, 6432 General Green Way, Stop 0-3, Alexandria, Virginia 22312; and (D) submitted under cover letter that identifies Bertha Ayala as the Respondent in these proceedings, the file number of these proceedings, a copy of which cover letter and money order or check shall be sent to Glenn S. Gordon, Assistant Regional Director, Southeast Regional Office, Securities and Exchange Commission, 1401 Brickell Avenue, Suite 200, Miami, FL 33131.
4. The Division of Enforcement ("Division") may, at any time following the entry of this Order, petition the Commission to: (1) reopen this matter to consider whether Respondent Galle provided accurate and complete financial information at the time such representations were made; (2) determine the amount of the administrative penalty to be imposed; and (3) seek any additional remedies that the Commission would be authorized to impose in this proceeding if Respondent Galle's Offer had not been accepted. No other issue shall be considered in connection with this petition other than whether the financial information provided by Respondent Galle was fraudulent, misleading, inaccurate or incomplete in any material respect, the amount of administrative penalty to be imposed and whether any additional remedies should be imposed. Respondent Galle may not, by way of defense to any such petition, contest the findings in this Order or the Commission's authority to impose any additional remedies that were available in the original proceeding.
By the Commission.
Jonathan G. Katz
1 The National Association of Securities Dealers has defined day trading as "an overall trading strategy characterized by the regular transmission by a customer of intra-day orders to effect both purchase and sale transactions in the same security or securities." SR-NASD-99-41 (August 20, 1999).
|Home | Previous Page||