U.S. Securities & Exchange Commission
SEC Seal
Home Previous Page
U.S. Securities and Exchange Commission

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
Release No. 49578/April 19, 2004

ADMINISTRATIVE PROCEEDING
File No. 3-11433


In the Matter of

JOSEPH PETROLINO and
ERIC SIVERSEN


:
:
:
:
:
:
:
:
:
ORDER MAKING FINDINGS AND
IMPOSING SANCTIONS BY DEFAULT

I. BACKGROUND

The Securities and Exchange Commission (Commission) issued its Order Instituting Proceedings (OIP) against Joseph Petrolino (Petrolino) and Eric Siversen (Siversen) on March 16, 2004, pursuant to Section 15(b) of the Securities Exchange Act of 1934 (Exchange Act). The OIP alleges that they were convicted of conspiracy to possess stolen trade secrets, based on their wrongdoing while associated with a broker-dealer registered with the Commission. Petrolino was served with the OIP on March 23, and Siversen, on March 27. Each failed to file an Answer, due twenty days after service of the OIP. See 17 C.F.R. 201.220(b); OIP at 2. Thus, each is in default, and the undersigned finds that the allegations in the OIP are true. See 17 C.F.R. 201.155(a), .220(f).

II. FINDINGS OF FACT

Petrolino and Siversen were each convicted of conspiracy to possess stolen trade secrets in violation of 18 U.S.C. 1832(5). Siversen was sentenced to twelve months and one day in prison, two years of probation, and a fine. United States v. Siversen, 01-CR-6291-FERGUSON (S.D. Fla. June 28, 2002). Petrolino was sentenced to two years of probation, fined, and ordered to forfeit ill-gotten gains. United States v. Petrolino, 01-CR-6291-FERGUSON (S.D. Fla. Sept. 26, 2003). The wrongdoing that underlies their convictions occurred while they were associated with a registered broker-dealer. Petrolino and Siversen gained access to a computer CD that had been stolen from First Union Securities Financial Network, Inc. (First Union Securities). The CD contained proprietary personal and financial information for a large number of First Union Securities customers. Petrolino and Siversen used the stolen information to attempt to increase their brokerage client base. They also sold the stolen information to an undercover FBI agent.

III. CONCLUSIONS OF LAW

Petrolino and Siversen have each been convicted, within ten years of the commencement of this proceeding, of a felony that "arises out of the conduct of the business of a broker [or] dealer" within the meaning of Sections 15(b)(4)(B)(ii) and 15(b)(6)(A)(ii) of the Exchange Act. Their unlawful conduct was recurrent and egregious. There are no mitigating circumstances.

IV. SANCTION

Petrolino and Siversen will be barred from association with any broker or dealer. This sanction will serve the public interest and the protection of investors, pursuant to Section 15(b) of the Exchange Act. It accords with Commission precedent and the sanction considerations set forth in Steadman v. SEC, 603 F.2d 1126, 1140 (5th Cir. 1979), aff'd on other grounds, 450 U.S. 91 (1981).

V. ORDER

IT IS ORDERED that, pursuant to Section 15(b) of the Securities Exchange Act of 1934, JOSEPH PETROLINO IS BARRED from association with any broker or dealer.

IT IS FURTHER ORDERED that, pursuant to Section 15(b) of the Securities Exchange Act of 1934, ERIC SIVERSEN IS BARRED from association with any broker or dealer.

__________________________________
Carol Fox Foelak
Administrative Law Judge

 

http://www.sec.gov/litigation/admin/34-49578.htm


Modified: 04/23/2004