SEC Press pdf 60 KB 4,309 chars

In re JOSEPH CARACCIOLO

Exhibit of Press Release: SEC Charges 38 Defendants in Multi-Million Dollar Stock Loan Scams
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summary

Joseph Caracciolo, a former securities lending representative at NISC, pled guilty to conspiring to commit securities and wire fraud by defrauding his employer through false representations and interstate wire communications, resulting in a permanent SEC bar from association with any broker-dealer.

paragraph

Joseph Caracciolo pled guilty to one count of conspiracy to commit securities and wire fraud under 18 U.S.C. § 1349 for orchestrating a scheme to defraud National Investor Services Corp. (NISC) of money and property using materially false pretenses and interstate wire communications between 2000 and 2005. Although the exact dollar amount of the fraud was not disclosed in the SEC order, the criminal conviction confirmed the intentional and fraudulent nature of his conduct. As a result, the SEC permanently barred him from association with any broker-dealer under Section 15(b)(6) of the Securities Exchange Act, with reapplication contingent on fulfilling conditions such as disgorgement, restitution, or arbitration awards.

narrative

Joseph Caracciolo, age 33, served as a securities lending representative at National Investor Services Corp. (NISC), a now-unregistered broker-dealer, from 2000 to 2005. During this period, he conspired with others to execute a fraudulent scheme designed to misappropriate money and property from NISC through materially false representations and interstate wire communications, violating 18 U.S.C. § 1349. On June 15, 2007, he pled guilty in federal court to one count of conspiracy to commit securities and wire fraud, admitting to the core allegations without contesting jurisdiction or the factual findings. In response, the SEC instituted administrative proceedings and, pursuant to his settlement offer, imposed a permanent bar against his association with any broker or dealer under Section 15(b)(6) of the Securities Exchange Act of 1934. The SEC’s order did not specify the monetary value of the fraud, but emphasized the intentional, deceptive nature of his conduct and the breach of fiduciary duty to his employer. Any future application for reentry into the securities industry is conditioned upon satisfying obligations such as disgorgement, restitution, or arbitration awards tied to his misconduct. The bar remains in effect unless and until Caracciolo meets all required remedial conditions, reflecting the SEC’s commitment to protecting market integrity and investor confidence.

Enriched metadata

Scheme
broker-dealer-fraud (100%)
Court
Eastern District of New York
Outcome
pleaded · 2007-06-15
Classified broker-dealer-fraud(confidence 100%). EDGAR detection: forms Form D· recall 29% / precision 9%. detection rule →
Statutes
SECTION 15(b) OF THE SECURITIES EXCHANGE ACT
Parties
Securities and Exchange CommissionJOSEPH CARACCIOLOCRIM
Keywords
commissioncaracciolosecurities exchangerespondentjoseph caracciolosecuritiesexchangeorderproceedingsadministrative proceedingspursuant securitiesrelated conductconduct servedserved basisbasis commission

Extracted insights

Entities 2
  • agency Securities and Exchange Commission
  • scheme_term to one count of conspiracy to commit securities fraud and wire fraud
Triples 7
  • Securities and Exchange Commission Deems It Appropriate Public Administrative Proceedings Be Instituted
  • Caracciolo Pled Guilty To One Count Of Conspiracy To Commit Securities Fraud And Wire Fraud
  • The Count Of The Criminal Information Alleged That Caracciolo Conspired To Execute A Scheme And Artifice To Defraud Nisc Of Money And Property
  • The Count Of The Criminal Information Alleged That Caracciolo Obtained Money And Property From Nisc By Means Of Materially False And Fraudulent Pretenses
  • The Count Of The Criminal Information Alleged That Caracciolo Executed The Scheme By Means Of Wire Communication In Interstate And Foreign Commerce
  • The Commission Imposes Sanctions Agreed To In Respondent Caracciolo’S Offer
  • The Commission Bars Caracciolo From Association With Any Broker Or Dealer
PDF
In re JOSEPH CARACCIOLO · Source
Text layers
Extracted body text (4,309c) 

                                                 UNITED                                                 STATES OF AMERICA 

                                                                     Before                                                                     the                                                                     

SECURITIES AND EXCHANGE COMMISSION 

SECURITIES EXCHANGE ACT OF 1934 
Release No. 56475 / September 20, 2007 
ADMINISTRATIVE PROCEEDING 
File No. 3-12815 
In the Matter of 
JOSEPH CARACCIOLO, 
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 Caracciolo 
(“Caracciolo” 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. Caracciolo, age 33, resides in Staten Island, New York.  From 2000 to 2005, 
he was a securities lending representative associated with National Investor Services Corp. 
(“NISC”), a broker-dealer that was formerly registered with the Commission.  
2. On June 15, 2007, Caracciolo 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 Caracciolo, Crim. Information No. 07-CR-439.   
3. The count of the criminal information to which Caracciolo pled guilty 
alleged, inter alia, that Caracciolo, together with others, did knowingly and intentionally conspire 
to execute a scheme and artifice to defraud NISC of money and property and to obtain money and 
property from NISC 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 Caracciolo’s Offer. 
Accordingly, it is hereby ORDERED: 
Pursuant to Section 15(b)(6) of the Exchange Act, the Respondent Caracciolo 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; 
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 
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OCR text (4,033c · tika · 95% conf) 
UNITED STATES OF AMERICA 

 Before the 


SECURITIES AND EXCHANGE COMMISSION 


SECURITIES EXCHANGE ACT OF 1934 
Release No. 56475 / September 20, 2007 

ADMINISTRATIVE PROCEEDING 
File No. 3-12815 

In the Matter of 

JOSEPH CARACCIOLO, 

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 Caracciolo 
(“Caracciolo” 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. Caracciolo, age 33, resides in Staten Island, New York.  From 2000 to 2005, 
he was a securities lending representative associated with National Investor Services Corp. 
(“NISC”), a broker-dealer that was formerly registered with the Commission.  

2. On June 15, 2007, Caracciolo 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 Caracciolo, Crim. Information No. 07-CR-439.   

3. The count of the criminal information to which Caracciolo pled guilty 
alleged, inter alia, that Caracciolo, together with others, did knowingly and intentionally conspire 
to execute a scheme and artifice to defraud NISC of money and property and to obtain money and 
property from NISC 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 Caracciolo’s Offer. 

Accordingly, it is hereby ORDERED: 

Pursuant to Section 15(b)(6) of the Exchange Act, the Respondent Caracciolo 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; 
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  

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