UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 49423 / March 16, 2004
File No. 3-11433
PUBLIC ADMINISTRATIVE PROCEEDINGS INSTITUTED AGAINST JOSEPH PETROLINO AND ERIC SIVERSEN
On March 16, 2004, the Commission entered an Order Instituting Public Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Order") against Joseph Petrolino ("Petrolino") and Eric Siversen ("Siversen") of South Florida, based on their conviction and guilty plea, respectively, for conspiracy to possess stolen trade secrets. The Order alleges that while employed as registered representatives at a registered broker-dealer, Petrolino and Siversen gained access to a computer CD which had been stolen from First Union Securities Financial Network, Inc. ("First Union Securities"). The computer CD contained proprietary personal and financial information for a large number of First Union Securities' customers. Petrolino and Siversen sold the proprietary customer information to an undercover FBI agent for $3,800 in cash. The Order also alleges that, at his trial, Petrolino acknowledged using the stolen information to attempt to increase his customer base. He also testified that Siversen did the same.
An indictment filed on November 29, 2001, charged Petrolino and Siversen with one count of conspiracy to possess stolen trade secrets ("Count One") and one count of possession of stolen trade secrets ("Count Two"). In May 2003, Petrolino was found guilty on Count One. Siversen pled guilty to Count One in April 2002.
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide the Respondents an opportunity to dispute these allegations, and to determine what remedial sanctions, if any, are appropriate and in the public interest. The Commission directed that an administrative law judge shall issue an initial decision in this matter within 210 days from the date of service of the Order.