Department of Banking and Finance Files Administrative Complaint Against Royal Palm Investments Ltd.WEST PALM BEACH, Fla.--(BUSINESS WIRE)--July 23, 1998-- The Department of Banking and Finance has filed an Administrative Complaint against Royal Palm Investments Ltd., formerly known as PCM (1) See phase change memory. (2) (Plug Compatible Manufacturer) An organization that makes a computer or electronic device that is compatible with an existing machine. Securities Limited L.P., located in Boca Raton Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla. The action also included firm associates Roland Greenspan, Joseph Scarfone, Vito Gili, Jr., Michael Scaramellino, Christopher Miano and Paul Tahan. The firm currently operates from Greenacres City, Palm Beach County, Fla. The complaint, filed under the authority of Florida Statutes The Florida Statutes are the codified, statutory laws of the state of Florida. The laws are approved by the Florida Legislature, and signed into law by the Governor of Florida. , Chapter 517, the Florida Securities and Investor Protection Act, alleges Royal Palm brokers "cold called" people around the country and used high-pressure sales tactics to convince them to purchase stocks. The first recommendation was usually to buy a stock listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . Soon after the initial purchase, the broker would call again touting another stock, this time a high risk microcap stock. The brokers allegedly would again use high-pressure sales tactics including failing to tell investors of the risky, speculative nature of the stock and guaranteeing future stock prices. The complaint further alleges that if investors did not agree to buy the stock, the brokers made the purchases without the investors' permission. When the investors received notification that the unauthorized purchases were made and called Royal Palm to discuss their accounts, their phone calls were ignored. In some cases, customers' orders to sell the unwanted stock were not executed. As a result of these alleged activities, the department has charged Royal Palm and the brokers named above have violated Florida law The jurisprudence of this state offers major differences from doctrines prevailing in the United States at either the federal level or that of the various states. Homestead exemption from forced sale, the dangerous instrumentality doctrine, the right to privacy, and the Williams and administrative rules by engaging in unauthorized trading and fraudulent practices, which include making false statements and issuing fraudulent confirmations of trades to customers. Other charges include failure of the firm to maintain the required net capital while receiving customer funds, violations of the Securities and Exchange Commission's penny stock Penny Stock A stock that sells for less than $1 a share but may also rise to as much as $10/share as a result of heavy promotion. All penny stocks are traded OTC or on the pink sheets. Notes: Penny stocks are highly speculative and risky. rules, failure to implement procedures to adequately supervise the activities of each registered representative and the sale of an unregistered security unregistered security See restricted security. . Disciplinary remedies against the firm and the individuals named could include revocation The recall of some power or authority that has been granted. Revocation by the act of a party is intentional and voluntary, such as when a person cancels a Power of Attorney that he has given or a will that he has written. or suspension of their licenses to sell securities in Florida and fines. The complaint also states DBF's intent to deny the pending registration of Vito Gili, Jr.
CONTACT: Office of the Comptroller
Tobi Pam, 561/837-5054
http://www.dbf.state.fl.us
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