In re JOSEPH SIMONE
Joseph Simone, a former securities lending representative at Van der Moolen Specialists USA LLC, pled guilty to conspiracy to commit securities and wire fraud for orchestrating a scheme to defraud his employer and other broker-dealers between 1997 and 2005, resulting in a permanent SEC bar from association with any broker-dealer.
Joseph Simone, a registered representative at Van der Moolen Specialists USA LLC from 1997 to 2005, pled guilty on April 5, 2007, to one count of conspiracy to commit securities and wire fraud under 18 U.S.C. § 1349 for participating in a scheme to defraud broker-dealers through false pretenses and wire communications. The SEC accepted his settlement offer without admitting or denying the allegations, except for the criminal conviction and its own jurisdiction. As a result, Simone was permanently barred from association with any broker or dealer under Section 15(b)(6) of the Securities Exchange Act of 1934, with reapplication contingent on fulfilling conditions such as disgorgement, restitution, or arbitration awards.
Joseph Simone, a 65-year-old former securities lending representative and registered representative at Van der Moolen Specialists USA LLC, was involved in a fraudulent scheme between 1997 and 2005 that targeted his employer and other registered broker-dealers by using materially false and fraudulent pretenses and wire communications to obtain money and property. On April 5, 2007, he pled guilty in U.S. District Court to one count of conspiracy to commit securities and wire fraud under 18 U.S.C. § 1349, admitting to participating in a coordinated effort to defraud multiple firms. The SEC initiated administrative proceedings and accepted Simone’s settlement offer, which did not admit or deny the allegations except for the criminal conviction and the Commission’s jurisdiction. Pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934, the SEC permanently barred Simone from association with any broker or dealer. Any future reapplication for industry reentry is subject to conditions including satisfaction of disgorgement orders, restitution payments, or arbitration awards related to the fraudulent conduct. The SEC emphasized that the sanction serves the public interest by removing individuals convicted of serious financial crimes from the securities industry. No specific dollar amount of loss was disclosed in the SEC order, but the criminal plea confirmed the scheme’s intentional, large-scale nature.
Extracted insights
- person joseph simone
- agency Securities and Exchange Commission
- court united states district court for the eastern district of new york
- Joseph Simone pled guilty to one count of conspiracy to commit securities fraud and wire fraud in violation of Title 18 United States Code, Section 1349
- Joseph Simone was associated with Van der Moolen, Specialists USA LLC (VDM) as securities lending representative and registered representative from 1997 to 2005
- Joseph Simone resides in Staten Island, New York
- Joseph Simone barred from association with any broker or dealer
- Joseph Simone conspired to defraud VDM and other registered broker-dealers of money and property
- SEC instituted proceedings against Joseph Simone pursuant to Section 15(b) of the Securities Exchange Act of 1934
- United States District Court for the Eastern District of New York heard case United States v. Joseph F. Simone, Crim. Information No. 07-CR-179
- Joseph Simone pled guilty on April 5, 2007
UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 56473 / September 20, 2007
ADMINISTRATIVE PROCEEDING
File No. 3-12813
In the Matter of
JOSEPH SIMONE,
Respondent.
ORDER INSTITUTING
ADMINISTRATIVE PROCEEDINGS
PURSUANT TO SECTION 15(b) OF THE
SECURITIES EXCHANGE ACT OF 1934,
MAKING FINDINGS, AND IMPOSING
REMEDIAL SANCTIONS
I.
The Securities and Exchange Commission (“Commission”) deems it appropriate and in the
public interest that public administrative proceedings be, and hereby are, instituted pursuant to
Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) against Joseph Simone
(“Simone” or “Respondent”).
II.
In anticipation of the institution of these proceedings, Respondent has submitted an Offer
of Settlement (the “Offer”) which the Commission has determined to accept. Solely for the
purpose of these proceedings and any other proceedings brought by or on behalf of the
Commission, or to which the Commission is a party, and without admitting or denying the findings
herein, except as to the Commission’s jurisdiction over him and the subject matter of these
proceedings, and the findings contained in Section III.2 below, which are admitted, Respondent
consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b)
of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions
(“Order”), as set forth below.
III.
On the basis of this Order and Respondent’s Offer, the Commission finds that:
1. Simone, age 65, resides in Staten Island, New York. From 1997 to 2005, he was a
securities lending representative and a registered representative associated with Van der Moolen,
Specialists USA LLC (“VDM”), a broker-dealer registered with the Commission.
2. On April 5, 2007, Simone pled guilty to one count of conspiracy to commit
securities fraud and wire fraud in violation of Title 18 United States Code, Section 1349 before the
United States District Court for the Eastern District of New York, in United States v. Joseph F.
Simone, Crim. Information No. 07-CR-179.
3. The count of the criminal information to which Simone pled guilty alleged, inter
alia
, that Simone, together with others, did knowingly and intentionally conspire to execute a
scheme and artifice to defraud VDM and other registered broker-dealers of money and property
and to obtain money and property from VDM and said other registered broker-dealers by means of
materially false and fraudulent pretenses, representations and promises and in executing such
scheme and artifice to defraud did so by means of wire communication in interstate and foreign
commerce.
IV.
In view of the foregoing, the Commission deems it appropriate and in the public interest to
impose the sanctions agreed to in Respondent Simone’s Offer.
Accordingly, it is hereby ORDERED:
Pursuant to Section 15(b)(6) of the Exchange Act, that Respondent Simone be, and hereby is
barred from association with any broker or dealer.
Any reapplication for association by the Respondent will be subject to the applicable laws
and regulations governing the reentry process, and reentry may be conditioned upon a number of
factors, including, but not limited to, the satisfaction of any or all of the following: (a) any
disgorgement ordered against the Respondent, whether or not the Commission has fully or partially
waived payment of such disgorgement; (b) any arbitration award related to the conduct that served
as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a
customer, whether or not related to the conduct that served as the basis for the Commission order;
2
and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct
that served as the basis for the Commission order.
For the Commission, by its Secretary, pursuant to delegated authority.
Nancy M. Morris
Secretary
3
UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 56473 / September 20, 2007
ADMINISTRATIVE PROCEEDING
File No. 3-12813
In the Matter of
JOSEPH SIMONE,
Respondent.
ORDER INSTITUTING
ADMINISTRATIVE PROCEEDINGS
PURSUANT TO SECTION 15(b) OF THE
SECURITIES EXCHANGE ACT OF 1934,
MAKING FINDINGS, AND IMPOSING
REMEDIAL SANCTIONS
I.
The Securities and Exchange Commission (“Commission”) deems it appropriate and in the
public interest that public administrative proceedings be, and hereby are, instituted pursuant to
Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) against Joseph Simone
(“Simone” or “Respondent”).
II.
In anticipation of the institution of these proceedings, Respondent has submitted an Offer
of Settlement (the “Offer”) which the Commission has determined to accept. Solely for the
purpose of these proceedings and any other proceedings brought by or on behalf of the
Commission, or to which the Commission is a party, and without admitting or denying the findings
herein, except as to the Commission’s jurisdiction over him and the subject matter of these
proceedings, and the findings contained in Section III.2 below, which are admitted, Respondent
consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b)
of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions
(“Order”), as set forth below.
III.
On the basis of this Order and Respondent’s Offer, the Commission finds that:
1. Simone, age 65, resides in Staten Island, New York. From 1997 to 2005, he was a
securities lending representative and a registered representative associated with Van der Moolen,
Specialists USA LLC (“VDM”), a broker-dealer registered with the Commission.
2. On April 5, 2007, Simone pled guilty to one count of conspiracy to commit
securities fraud and wire fraud in violation of Title 18 United States Code, Section 1349 before the
United States District Court for the Eastern District of New York, in United States v. Joseph F.
Simone, Crim. Information No. 07-CR-179.
3. The count of the criminal information to which Simone pled guilty alleged, inter
alia, that Simone, together with others, did knowingly and intentionally conspire to execute a
scheme and artifice to defraud VDM and other registered broker-dealers of money and property
and to obtain money and property from VDM and said other registered broker-dealers by means of
materially false and fraudulent pretenses, representations and promises and in executing such
scheme and artifice to defraud did so by means of wire communication in interstate and foreign
commerce.
IV.
In view of the foregoing, the Commission deems it appropriate and in the public interest to
impose the sanctions agreed to in Respondent Simone’s Offer.
Accordingly, it is hereby ORDERED:
Pursuant to Section 15(b)(6) of the Exchange Act, that Respondent Simone be, and hereby is
barred from association with any broker or dealer.
Any reapplication for association by the Respondent will be subject to the applicable laws
and regulations governing the reentry process, and reentry may be conditioned upon a number of
factors, including, but not limited to, the satisfaction of any or all of the following: (a) any
disgorgement ordered against the Respondent, whether or not the Commission has fully or partially
waived payment of such disgorgement; (b) any arbitration award related to the conduct that served
as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a
customer, whether or not related to the conduct that served as the basis for the Commission order;
2
and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct
that served as the basis for the Commission order.
For the Commission, by its Secretary, pursuant to delegated authority.
Nancy M. Morris
Secretary
3