In the Matter of John H. Gutfreund, et al.
Securities and Exchange Commission
51 SEC 93 (1992)
Relevant factsFree
Salomon Brothers management (defendants) learned in 1991 that employee Paul Mozer had submitted a false bid in a U.S. Treasury auction, violating federal securities law, but took no action against him for several months — during which Mozer committed two additional securities violations. The SEC brought an administrative proceeding against Salomon's management for deficient supervision under Exchange Act section 15(b), and the parties settled, with the SEC publishing these findings.
IssueFree
Whether sanctions against the management of broker-dealers are appropriate when their supervision of employees is deficient.
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