By The Book: IDA fines Standard Securities Capital Corp.

(March 7, 2008) The IDA has levied a fine of $162,500 against Standard Securities Capital Corporation, after the firm admitted it had failed to maintain and implement an effective sales compliance program.

Between March 2003 and March 2006, Standard Securities failed to remain informed of essential facts relating to a client account operated by an employee of the firm, who also had a financial interest in the account.

The employee, Mark Marcello, failed to “use due diligence to learn the essential facts relative to a client and orders accepted on behalf of the client and to ensure that such orders were within the bounds of good business practice,” according to the settlement.

The IDA also levied a fine of $47,500, plus $10,000 in costs against Marcello and suspended him from serving as ultimate designated person for three months.

Standard Securities must also pay $62,500 in costs, and has already been fined $80,000 by Market Regulation Services.

(03/07/08)

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