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11/17/2004
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In the matter of: Harrison Securities, Frederick Blumer, Raymond Leventhal, Gregory Weissman, James Pecoraro, Chad Thompson, Raymond Connors, Howard Birnbaum and Abed Lulu
Consent Order
PRESS RELEASE - For Immediate Release
November 17, 2004
Contact:
Fred J. Joseph
Colorado Division of Securities
303-894-2320
Harrison Securities, Inc., Expelled From Colorado
New York Firm's Broker-Dealer License Revoked and 8 Agents Sanctioned for Improper Sales Practices
Denver, Colorado --- Colorado Securities Commissioner Fred J. Joseph announced today that the Colorado broker-dealer license of Harrison Securities, Inc., a New York based securities brokerage firm, has been revoked. In addition to the revocation of the firm's license, the Colorado securities licenses of two principals of the firm, Frederick Blumer and Raymond Leventhal, were also revoked. In addition, the Colorado securities licenses of the following agents of Harrison were sanctioned: Raymond Connors, Gregory Weissman, James Pecoraro, Chad Thompson, Abed Lulu, and Howard Birnbaum.
These sanctions were imposed as a result of an action initiated by the Division staff on February 6, 2004. In its Notice of Charges, the Division staff alleged that Harrison and certain sales representatives engaged in unauthorized trading in certain Colorado investors' accounts. In addition, the Division staff alleged that certain Harrison securities sales representatives engaged in a course of frequent, high-risk trading that was inconsistent with certain Colorado customer's' financial situations. The trades conducted by the firm's sales representative were unsuitable in light of these Colorado investors' knowledge, financial situation, needs, experience, and investment objectives.
The sanctions imposed are as follows:
Harrison Securities, Inc.
Permanent revocation of its Colorado broker-dealer license.
Frederick Blumer
Chief executive Officer of Harrison. Permanent revocation of his Colorado securities sales license.
Raymond Leventhal
Vice-President and Director of Compliance for Harrison. Permanent revocation of his Colorado securities sales license, subject to a Final Order.
Gregory Weissman
Associated with Harrison as a securities sales representative. Five-year suspension of his Colorado securities sales license.
James Pecoraro
Associated with Harrison as a securities sales representative. Three-year suspension of his Colorado securities sales license. Pecoraro has agreed to never reapply for a securities license in Colorado and pay restitution in the amount of $15,900.
Chad Thompson
Associated with Harrison as a securities sales representative. Ninety-day suspension of his Colorado securities sales license and payment of $14,000 in restitution.
Raymond Connors
Associated with Harrison as a securities sales representative. Forty-five day suspension of his Colorado securities sales license.
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Howard Birnbaum
Associated with Harrison as a securities sales representative. Fifteen-day suspension of his Colorado securities sales license.
Abed Lulu
Associated with Harrison as a securities sales representative. Fifteen-day suspension of his Colorado securities sales license.
"These sanctions demonstrate the Division's intent to aggressively protect Colorado investors from the kind of fraudulent sales practices employed by this New York firm," said Securities Commissioner Fred Joseph. "The sanctions vary based upon our perception of the culpability of each party," said Joseph, "with the firm and its principals suffering the most severe sanctions."
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