SECURITIES EXCHANGE ACT OF 1934
Release No. 48561 / September 29, 2003
ADMINISTRATIVE PROCEEDING
File No. 3-11280
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ORDER INSTITUTING PROCEEDINGS, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS |
I.
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") against Brian P. Delaney.
In anticipation of the institution of these proceedings, Delaney has submitted an Offer of Settlement (the "Offer"), 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 the findings herein, except as to the Commission's jurisdiction over him, the subject matter of these proceedings, and the entry of an injunction, which are admitted, Delaney consents to the entry of this Order Instituting Proceedings, Making Findings, and Imposing Remedial Sanctions ("Order"), as set forth below.
II.
On the basis of this Order and Delaney's Offer, the Commission finds that:
A. During the period October 1995 through March 2002, Delaney was an equity trader associated with Knight Securities, L.P. ("Knight"), a broker-dealer registered with the Commission.
B. On September 8, 2003, the Commission filed a civil action in the United States District Court for the District of New Jersey charging Delaney and others with violating Section 17(a) of the Securities Act of 1933 (the "Securities Act"), Exchange Act Section 10(b) and Exchange Act Rule 10b-5. SEC v. Brian P. Delaney, et al., No. 03 CV 4206 (JWB). The Commission's complaint alleged, among other things, that from approximately September 2001 through March 2002, Delaney and the other defendants engaged in a fraudulent trading scheme in which they knowingly and intentionally executed stock trades from Knight proprietary accounts they controlled at prices guaranteed to generate profits in private brokerage accounts that they also controlled, thereby defrauding Knight of approximately $1.4 million.
C. On September 19, 2003, the Court entered a final judgment against Delaney
that, among other things, enjoined him from violating Securities Act Section 17(a), Exchange Act Section 10(b) and Exchange Act Rule 10b-5.
D. Arising from the conduct described above, Delaney was charged with
criminal violations of 18 U.S.C. Section 371 (conspiracy) and 18 U.S.C. 1343 (wire fraud). On September 8, 2003, a criminal judgment was entered against him on these charges.
III.
In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in Delaney's Offer.
ACCORDINGLY, IT IS HEREBY ORDERED:
Pursuant to Exchange Act Section 15(b)(6), that Delaney be, and hereby is barred from association with any broker or dealer.
Any reapplication for association by Delaney will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors, including, but not limited to, the satisfaction of any or all of the following: (a) any disgorgement ordered against Delaney, whether or not the Commission has fully or partially waived payment of such disgorgement; (b) any arbitration award related to the conduct that served as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a customer, whether or not related to the
conduct that served as the basis for the Commission order; and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct that served as the basis for the Commission order.
By the Commission.Jonathan G. Katz
Secretary