UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act of 1934
Release No. 50299 / September 1, 2004
Admin. Proc. File No. 3-11624
In the Matter of Marlon D. Tropeano
The Securities and Exchange Commission ("Commission") announced today that it issued an Order Instituting Public Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Order") against Marlon D. Tropeano ("Tropeano"). In the Order, the Division of Enforcement alleges that the United States District Court for the Southern District of New York has issued a permanent injunction against Tropeano, and found him liable for defrauding various customers of Briarwood Investment Counsel, Inc. ("Briarwood"), a registered broker-dealer with whom Tropeano was a registered representative, by, among other things, selling securities in their accounts without authorization and misappropriating the proceeds of those sales. Specifically, on a number of occasions between October 1997 and March 1998, Tropeano used forged documents to cause the unauthorized transfer of customer accounts from Briarwood to other broker-dealers, caused securities in those accounts to be sold without authorization, and diverted the proceeds of those sales to various third parties for their, as well as his own, benefit. Through his fraudulent conduct, Tropeano misappropriated over $76,000 of customer funds.
On August 7, 2000, a Final Judgment By Default was entered against Tropeano, permanently enjoining him from future violations of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5, promulgated thereunder, in the civil action entitled SEC v. Marlon D. Tropeano, et al., Civil Action No. 99 Civ. 10260 (JSR), in the United States District Court for the Southern District of New York. In addition, on February 10, 2000, Tropeano pleaded guilty to two felony counts of conspiracy to commit securities fraud before the United States District Court for the Southern District of New York, in United States v. Marlon D. Tropeano, et al., 99 Cr. 01024 (SAS). On July 26, 2000, a criminal judgment was entered against Tropeano, sentencing him to a prison term of one year and one day followed by two years of supervised release.
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Tropeano an opportunity to dispute these allegations, and to determine what, if any, remedial sanctions against Tropeano are appropriate and in the public interest pursuant to Section 15(b) of the Exchange Act. The Commission directed that an administrative law judge issue an initial decision in this matter within 210 days from the date of service of the Order Instituting Proceedings.
See also the Order in this matter