NEW YORK STOCK EXCHANGE, INC. 

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A Stipulation of Facts and Consent to Penalty is submitted by the Respondent without admitting or deny guilt, but merely consenting to findings by the Hearing Panel.

Unregistered Aviation Mgr. failed to disclose interest in three corporations to which he paid fictitious invoices and received prohibited commissions. Censure and permanent bar

Spainer submitted a Stipulation of Facts and Consent to Penalty to the NYSE, which was accepted by the Hearing Panel as set forth below.

Spainer was a non-registered employee with Lehman Bros. who served in the firm's Event Marketing Department as its Aviation Manager.  He was responsible for managing the firm's use of private and charter aircraft, and controlled flight scheduling (and the invoice and check disbursement requests for same).

When hired as the Aviation Manager Spainer failed to disclose (despite being asked) that he had a personal interest in three outside corporations.  On 12 occasions he made multiple payments for one chartered flight --- one payment went to the legitimate vendor but additional bogus payments were made to one of his three undisclosed corporations.  On two occasions Spainer made payments to his undisclosed corporations for flights that never occurred.  Further, Spainer's undisclosed corporations acted as brokers for chartered aircraft and he received commissions on such placements despite contrary Lehman Bros. policy.  The total of all improper payments was approximately $371, 000.  As of the date of the decision, Spainer repaid $292,740, continues to undertake reimbursement.  Lehman terminated him and filed a Form RE-3 disclosing the above conduct.

The Panel imposed a Censure and permanent bar.

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