UNITED STATES OF AMERICA
|In the Matter of
David Barroso, Jr.,
|ORDER INSTITUTING PUBLIC ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTIONS 15(b) AND 19(h) OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS|
The Securities and Exchange Commission ("Commission") deems it appropriate in the public interest and for the protection of investors to institute public administrative proceedings against David Barroso, Jr. ("Barroso"), pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934 ("Exchange Act").
In anticipation of the institution of the administrative proceedings, Barroso has submitted an Offer of Settlement ("Offer"), which the Commission has determined is in the public interest to accept. Barroso admits the jurisdiction of the Commission over him and the subject matter of these proceedings. Solely for the purpose of this proceeding, and any other proceeding brought by or on behalf of the Commission or in which the Commission is a party, prior to a hearing and without admitting or denying the findings, except as to Section IV.A. and IV.B. below, which are admitted, Barroso consents to the issuance of this Order Instituting Public Administrative Proceedings Pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions ("Order"), and to the entry of the findings and to the imposition of the remedial sanctions as set forth below.
Accordingly, IT IS ORDERED that said proceedings be, and hereby are, instituted.
On the basis of this Order and the Offer, the Commission finds that:
A. Barroso is 35 years old and lives in Forest Hills, New York. From February 1997 through August 1997, Barroso was a registered representative of Chatfield Dean & Co., Inc. ("Chatfield Dean"), a broker-dealer registered with the Commission. At the time of the alleged conduct described in Section IV.C below, Barroso was seeking to become associated as a registered representative with Briarwood Investment Counsel ("Briarwood"), also a registered broker-dealer.
B. On September 19, 2000, Barroso was permanently enjoined by consent by the United States District Court for the Southern District of New York in SEC v. Marlon D. Tropeano, et al., 99 Civ. 10260 (JSR) (S.D.N.Y. September 19, 2000), from violating Section 10(b) of the Exchange Act and Rule 10b-5, thereunder.
C. The Commission's complaint in the above referenced action alleges, among other things, that, beginning in March 1998, Barroso participated with Marlon D. Tropeano in a scheme to defraud customers of Briarwood, by transferring the customers' securities brokerage account from Briarwood to Chatfield Dean, selling securities from the account without authorization, and misappropriating the proceeds.
In view of the foregoing, the Commission deems it appropriate in the public interest and for the protection of investors to impose the sanction specified by Barroso in his Offer.
Accordingly, IT IS ORDERED that Barroso be, and hereby is, barred from association with any broker or dealer.
By the Commission.
Jonathan G. Katz
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