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

SEC Open Meeting Agenda
Thursday, June 13, 2002

Oral Argument

Item 1: George J. Kolar
Office:  Office of the General Counsel
Staff:  Anne E. Chafer, William S. Stern

Item 1: George J. Kolar

The Commission will hear oral argument on an appeal by George J. Kolar from the decision of an administrative law judge. The law judge found that Kolar failed to exercise reasonable supervision over a salesman in Dean Witter's Troy, Michigan branch office, who violated registration and antifraud provisions of the securities laws. The law judge ordered that Kolar be suspended for six months from acting in a supervisory capacity with any registered broker or dealer, and fined him $20,000.

Among the issues likely to be argued are:

  1. whether Kolar acted reasonably because he inquired into the salesman's activities to the extent he was authorized to do so;
  2. whether the salesman's conduct in violation of the securities laws after August 1992 is a statutory predicate for sanctioning Kolar since there were no further "red flags" after that month;
  3. whether Kolar was a supervisor within the meaning of Exchange Act Section 15(b)(4)(E);
  4. whether Kolar qualifies for the "safe harbor" provisions of Section 15(b)(4)(E); and
  5. if it were determined that Kolar failed to exercise reasonable supervision what, if any sanction, would be appropriate in the public interest.

For further information, please contact William Stern at (202) 942-0949






Modified: 06/13/2002