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NASD IMPOSES FINES IN EXCESS OF $240,000, BARS THREE INDIVIDUALS AND SUSPENDS FIVE IN CONNECTION WITH MANIPULATIVE TRADING

NASD IMPOSES FINES IN EXCESS OF $240,000, BARS THREE INDIVIDUALS
 AND SUSPENDS FIVE IN CONNECTION WITH MANIPULATIVE TRADING
 WASHINGTON, Nov. 5 /PRNewswire/ -- The National Association of Securities Dealers, Inc. (NASD), the self-regulatory organization for The Nasdaq Stock Market and the non-Nasdaq over-the-counter securities markets, has announced a disciplinary action against Robert L. Blake in connection with manipulative trading between November 1988 and March 1989. At the time, Blake was associated with J.T. Moran & Co., a former member of the NASD, as a registered representative and the trader. Also named in the NASD's complaint were: Edward K. Kirwan, Thomas I. Davis Jr., Gordon Price, Bruce Olens, Robert Benedickson, Neil Litvin and Miles F. Levites, all of whom were associated with other member firms.
 Pursuant to their Offers of Settlement which neither admitted nor denied the allegations of the complaint filed against them, the respondents agreed to the following sanctions: Blake, censure, $75,000 fine and a suspension in all capacities for a period of five years; Kirwan, censure, $100,000 fine and a bar from associating with any member of the Association in any capacity; Davis, censure, $20,000 fine and a suspension of two years in all capacities; Price, censure, $10,000 fine and a bar from associating with any member of the Association in any capacity; Olens, censure, $10,000 fine and a bar from associating with any member of the Association in any capacity; Benedickson, censure, $10,000 fine and a suspension from association with any member in any principal capacity for six months; Litvin, censure, $10,000 fine and a suspension from association with any member in any principal capacity for six months; and Levites, censure, $7,500 fine and a suspension from associating with any member in a principal capacity for nine months.
 The respondents, in their Offers of Settlement consented to findings consistent with the violations alleged in the complaint. The complaint alleged that during the period from on or about November 1988 through on or about March 1989, respondents Blake, Kirwan and Davis, assisted in certain instances by respondents Price and Olens, violated Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5 thereunder and Article III, Sections 1, 5 and 18 of the Association's Rules of Fair Practice, by executing a series of transactions which included, among other things: parking stock in customer accounts; entering fraudulent quotations in the Nasdaq system; soliciting, arranging and effecting matched orders and wash sales; soliciting, arranging and effecting a series of transactions at the end of the day to "mark the close;" arranging and effecting a series of unauthorized transactions; arranging and effecting transactions in violation of Regulation T; and executing and reporting of non-bona fide transactions and entering artificial quotations into the Nasdaq system. Section 18 of the Association's Rules is the anti-fraud rule, which prohibits the use of any manipulative, deceptive, or other fraudulent device in the purchase or sale of any security.
 Moreover, the complaint alleged that respondent Kirwan violated Article III, Section 1 of the Association's Rules and Schedule C of the Association's By-Laws by failing to register with the Association. The complaint also alleged that respondents Benedickson and Litvin failed to appropriately supervise Blake, and respondent Levites failed to appropriately supervise Davis, thereby violating Article III, Sections 1 and 27 of the Association's Rules.
 The NASD operates and regulates the Nasdaq Stock Market, and surveys the non-Nasdaq over-the-counter market as well. As such, it monitors trading activity in over 8,000 actively traded securities. The investigation which led to the filing of the complaint in this matter was conducted by the NASD's Market Surveillance Department which employs sophisticated technology to alert it to unusual market activity, as well as a staff of professionals who conduct routine reviews and detailed investigations into questionable activity.
 These disciplinary proceedings and sanctions imposed are a part of the NASD's continuing commitment to address fraud and other abuses in the securities business.
 -0- 11/5/91
 /CONTACT: James M. Cangiano, 301-590-6424, or Robert Ferri, 202-728-8955, both of the National Association of Securities Dealers/ CO: National Association of Securities Dealers ST: District of Columbia IN: FIN SU: SB-DC -- DC013 -- 1293 11/05/91 13:56 EST
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Date:Nov 5, 1991
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