Ex-Brokers Settle Short-Selling SEC Claim

WASHINGTON -- Two former CIBC Oppenheimer Corp. stockbrokers, who were previously barred by the New York Stock Exchange in 2000 for trading ahead of customers' orders, on Wednesday agreed to pay more than $1 million to settle accusations of illegal short selling ahead of stock offerings, Reuters reported.

The Securities and Exchange Commission filed a civil complaint against Ethan Weitz, 31, of Manalapan, Florida, and Robert Altman, 33, of New York, in a federal court in Miami. Each settled with the SEC without admitting or denying any wrongdoing.

According to the SEC civil complaint, both men allegedly broke securities rules by selling short within five days that underwriters priced a stock intended for offerings either by the company or shareholders and then covering their short position with stock they bought in the public offerings.

They also sold short when the price of a stock was dropping, the SEC further alleged.

-- NYSSCPA.org News Staff

Posted on 05/01/03