Securities Exchange Act of 1934
Release No. 47987 / June 5, 2003
Administrative Proceeding
File No. 3-11151
In the Matter of SETH J. GLASER Respondent. |
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ORDER INSTITUTING PUBLIC ADMINISTRATIVE PROCEEDINGS, PURSUANT TO SECTION 15(b)(6) OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS |
I.
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby is, instituted pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 ("Exchange Act") against Respondent Seth J. Glaser ("Glaser" or "Respondent").
II.
In anticipation of the institution of these administrative proceedings, Glaser has submitted an Offer of Settlement ("Offer") to the Commission, which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party, and without admitting or denying the findings herein, except that Glaser admits the jurisdiction of the Commission over him and over the subject matter of these proceedings, and the entry of the Final Judgment of Permanent Injunction and Other Relief by Consent against him as set forth in Section III.D., Glaser consents to the entry of this Order Instituting Public Administrative Proceedings Pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions ( "Order"), containing the findings and sanctions as set forth below.
III.
On the basis of this Order and Glaser's Offer, the Commission makes the following findings:
A. At the time of the alleged misconduct, Glaser was associated with a broker-dealer registered with the Commission pursuant to Section 15(b) of the Exchange Act.
B. On January 27, 1999, the Commission filed a Complaint in the United States District Court for the Eastern District of New York, in an action captioned Securities and Exchange Commission v. Larry F. Smath, Gregory R. Salvage, Joseph T. Falcone, Peter L. Cohen, Seth J. Glaser, and Frank J. Zangara, Civil Action No. CV-99-523 (TCP), charging Glaser with violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
C. In the injunctive action described in Paragraph III.B. above, the Commission's Complaint alleged, inter alia, that Glaser participated in an insider trading scheme involving nonpublic advance copies of the "Inside Wall Street" ("IWS") column of Business Week magazine. Specifically, the Commission alleged that Glaser and others paid another defendant cash in exchange for communicating the contents of the IWS columns to them before the columns were made public, and that Glaser traded securities while in possession of the nonpublic information obtained from the IWS columns. The Commission's Complaint also alleged that Glaser recommended securities mentioned in the IWS columns to his brokerage customers, while in possession of the nonpublic contents of the IWS columns.
D. A Final Judgment of Permanent Injunction and Other Relief by Consent as to Seth J. Glaser ("Final Judgment") was entered in the United States District Court for the Eastern District of New York on October 2, 2002. Among other things, the Final Judgment permanently restrains and enjoins Glaser from, directly or indirectly, violating Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder.
IV.
Based on the foregoing, the Commission deems it appropriate and in the public interest to accept the Respondent's Offer and to impose the remedial relief specified in the Offer.
Accordingly, IT IS ORDERED, that Respondent Seth J. Glaser be, and hereby is, barred from association with any broker or dealer.
For the Commission, by its Secretary, pursuant to delegated authority.
Jonathan G. Katz
Secretary