U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19827 / September 12, 2006
SEC v. Frank Furino, CV-05-1259 (E.D.N.Y.)
The Securities and Exchange Commission announced today that the Honorable Sterling R. Johnson, Jr., United States District Judge for the Eastern District of New York, entered a final judgment against Frank J. Furino ("Furino") on September 11, 2006. The judgment permanently enjoins Furino from further violations of the antifraud provisions of the federal securities laws (Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder). The judgment also orders Furino to disgorge $79,500 of illicit profits and to pay a civil penalty of $25,000.
The Commission's complaint, filed on March 9, 2005, alleged that Furino, a clerk for a floor broker on the New York Stock Exchange, had access to the purchase and sell orders of the floor broker's customers. Furino routinely informed a day trader by telephone of the security, quantity, price, and side (buy or sell) associated with large customer orders, after the floor broker received, but before it executed, these orders. On at least 58 occasions, the day trader used the information obtained from Furino to trade ahead of the floor broker's customers.
For further information, see Litigation Release 19126 (March 9, 2005), announcing the filing of the Commission's civil action against Furino.