UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 47044 / December 19, 2002
File No. 3-10980
In the Matter of
SALVATORE C. MARCHIANO
ORDER INSTITUTING PROCEEDINGS
PURSUANT TO SECTION 15(b)(6)
OF THE SECURITIES EXCHANGE
ACT OF 1934, MAKING FINDINGS
AND IMPOSING REMEDIAL SANCTIONS
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that a public administrative proceeding be, and hereby is, instituted pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 ("Exchange Act") against Salvatore C. Marchiano ("Respondent").
Respondent has submitted an Offer of Settlement ("Offer") that the Commission has determined to accept. On the basis of the foregoing, Respondent hereby:
- Admits the jurisdiction of the Commission over him and over the matters set forth in the Order Instituting Proceedings Pursuant to Section 15(b)(6) of the Securities and Exchange Act of 1934, Making Findings and Imposing Remedial Sanctions;
- Solely for the purpose of these proceedings 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 the Commission's findings contained in the Order, except as to the fact of his criminal conviction set forth in paragraph III.B.1 below, which is admitted, consents to the entry of an Order by the Commission containing the following findings and remedial sanctions set forth below:
On the basis of this Order and Respondent's Offer, the Commission finds that:
Salvatore C. Marchiano, 41, during various times between August 1988 to December 1992 and from March 1993 to May 1997, was vice president of A.S. Goldmen & Co., Inc. ("Goldmen"), a broker dealer registered with the Commission, head trader, a manager in Goldmen's New Jersey office, and a registered representative. Marchiano was also a registered representative at the following broker dealers registered with the Commission: Steinberg & Lyman (November 1986 to December 1987); Copeland Securities Incorporated (December 1987 to January 1988); and Marketfield Securities Limited (July 1988 to August 1988).
B. State Criminal Conviction
- On July 23, 2001, Marchiano was criminally convicted by jury verdict in the Supreme Court of the State of New York of enterprise corruption, 7 counts of securities fraud, and 2 counts of criminal possession of stolen property. Marchiano was sentenced to imprisonment of 5 to 15 years and ordered to pay restitution of $4 million. Marchiano has appealed his conviction.
- The indictment underlying the criminal conviction charged, among other things, that Marchiano, acting as a registered representative and manager of Goldmen, and others, engaged in a pattern of criminal activity that included: (1) manipulating prices of securities sold to the public; (2) controlling stocks through nominee and other controlled accounts; (3) causing the submission of false records; (4) requiring brokers to offset customer sell orders with fraudulently-induced purchase orders; (5) charging undisclosed and excessive mark-ups and commissions; and (6) permitting sales of securities by unlicensed persons. The indictment underlying the conviction also charged that Marchiano, and others, knowingly possessed stolen property with a value in excess of one million dollars, with intent to benefit themselves and persons other than the owners thereof and to impede the recovery by the owners thereof.
Based on the foregoing, the Commission deems it appropriate and in the public interest to accept Respondent's Offer and to impose the sanctions that are set forth in the Offer.
ACCORDINGLY, IT IS ORDERED that, pursuant to Section 15(b)(6) of the Exchange Act, Respondent be, and hereby is, barred from association with any broker or dealer, provided,
however, that the bar will be vacated, upon Respondent's application, if the conviction referenced above is reversed or vacated on appeal.
By the Commission.
Jonathan G. Katz