UNITED STATES OF AMERICA
In the Matter of
ERIKA D. WHITMAN
ORDER INSTITUTING PROCEEDINGS
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that a public administrative proceeding be, and hereby is, instituted pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 ("Exchange Act") against Erika D. Whitman ("Respondent").
Respondent has submitted an Offer of Settlement ("Offer") that the Commission has determined to accept. On the basis of the foregoing, Respondent hereby:
On the basis of this Order and Respondent's Offer, the Commission finds that:
Erika D. Whitman, 31, was employed by A.S. Goldmen & Co., Inc. ("Goldmen"), a broker dealer registered with the Commission, from August 1993 to May 1998. Whitman was initially an assistant to Goldmen's executive office assistant, and in May 1996 became an assistant compliance director. In April 1997, Whitman became Goldmen's compliance director, and held Series 7, 24, 27, and 63 licenses. Whitman is a resident of New Jersey.
B. State Criminal Conviction
On April 12, 2002, Whitman was criminally convicted of Violation of General Business Law §352-C, a Class A misdemeanor, in connection with the sale of securities, upon entry of her plea of guilty by the Supreme Court of the State of New York. Whitman was sentenced to a fine of $1,000. Based upon the plea allocution upon which her conviction was based, Whitman, while director of Goldmen's compliance department, engaged in fraud by: (1) destroying and falsifying Goldmen's business records; (2) lying to and misleading customers about the status of their accounts and investigations into their complaints; (3) suppressing customer complaints by improper compensation to avoid required regulatory reporting, and; (4) failing to report violations of securities laws and regulations that she witnessed at Goldmen.
Based on the foregoing, the Commission deems it appropriate and in the public interest to accept Respondent's Offer and to impose the sanctions that are set forth in the Offer.
ACCORDINGLY, IT IS ORDERED that, pursuant to Section 15(b)(6) of the Exchange Act, Respondent be, and hereby is, barred from association with any broker or dealer.
By the Commission.
Jonathan G. Katz
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