UNITED STATES OF AMERICA
In the Matter of
DANIEL PATRICK O'CONNELL,
|ORDER INSTITUTING PUBLIC ADMINISTRATIVE PROCEEDING, MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS AGAINST DANIEL PATRICK O'CONNELL|
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that a public administrative proceeding be instituted against Daniel Patrick O'Connell ("O'Connell" or "Respondent") pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act").
In anticipation of the institution of these proceedings, O'Connell has submitted an Offer of Settlement (the "Offer"), which the Commission has determined to accept. Solely for the purpose of this proceeding 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 any of the findings contained herein, except as to the jurisdiction of the Commission over him and over the subject matter of this proceeding and the entry of the permanent injunctions set forth in paragraph III.B., below, which he admits, O'Connell by the Offer consents to the entry of this Order Instituting Public Administrative Proceeding, Making Findings and Imposing Remedial Sanctions Against Daniel Patrick O'Connell ("Order"), by the Commission.
Accordingly, IT IS HEREBY ORDERED that a proceeding pursuant to Section 15(b) of the Exchange Act be, and hereby is, instituted.
On the basis of this Order and the Respondent's Offer, the Commission finds that:
A. O'Connell, age 36, was a resident of San Francisco, California, during the relevant period. O'Connell was a registered representative associated with Spencer Trask Securities, Inc. ("Spencer Trask"), a registered broker-dealer, from June 2000 until his termination on April 24, 2001. From March 1994 until May 2000, O'Connell was a registered representative associated with Salomon Smith Barney ("Salomon"), a registered broker-dealer.
B. On November 13, 2001, O'Connell was permanently enjoined from violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, by the United States District Court for the Northern District of California, SEC v. Daniel Patrick O'Connell, CV-01-3980 (WHA). O'Connell consented to the entry of the permanent injunction without admitting or denying the allegations in the Commission's complaint.
C. The Commission's complaint alleges, among other things, that O'Connell misappropriated $6 million from client accounts over a six-week period beginning in March 2001. The complaint further alleges that O'Connell misrepresented to clients that he was using the funds to purchase bonds for their account, but instead transferred the funds to his own account and began investing the money in securities in the hopes of generating trading profits for his personal benefit. O'Connell lost $4.3 million of the client funds through his unauthorized trading before his misconduct was detected.
Based on the foregoing, the Commission deems it appropriate and in the public interest to accept the Offer submitted by O'Connell and impose the sanctions specified in the Respondent's Offer.
ACCORDINGLY, IT IS HEREBY ORDERED that O'Connell be, and hereby is, barred from association with any broker or dealer.
By the Commission.
Jonathan G. Katz
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