NEW YORK STOCK EXCHANGE, INC. 

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RR, acting in an unregistered capacity in firm's risk and credit department, opened a joint account in his name and a customer --- without the latter's knowledge.  Transferred $15,000 from customer's personal account. Engaged in profitable options trading in joint account and withdrew $10,000.  Censure and bar.

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

During the relevant times, Tam was a registered person employed by Charles Schwab & Co., Inc. in a non-registered capacity as a senior operations specialist in the firm's risk and credit department.  In that capacity, he had the ability to transfer/journal customers' funds among accounts, normally pursuant to express client authorization.  Tam opened a joint account in his name and that of a pre-existing Schwab customer (this other party maintained an individual account).  Tam then forged the customer's name to a Letter of Authorization journaling $14,000 from the customer's individual account into the joint account.  Tam then used those funds to engage in options trading, by which he achieved more than $50,000 in profits within approximately six weeks. He then had two checks totaling $10,000 issued to himself.

Tam's conduct was deemed a misappropriation of customer funds and inconsistent with just and equitable principles of trade.  He was censured and permanently barred in all capacities.

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