NEW YORK STOCK EXCHANGE, INC. 

WALL STREET ACCESS
Exchange Hearing Panel Decision
02-148
July 19, 2002, 
Hearing Officer ---
Milton M. Stein

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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.

BD and COO recreated Letter of Authorization and submitted same to NYSE without disclosing same.  Censure and $50,000 fine upon firm;Censure and $45,000 fine upon COO.

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

WSA is a BD and Fitzgerald was its co-Chief Operating Officer.  During the course of an NYSE investigation relating to an employee of another member firm, Enforcement Staff requested production of various records for the subject employee's personal accounts.  A specific request was made of of Letter of Authorization related to a November 16, 2998 transfer and loan of approximately $329,000 from the personal account of WSA's Chariman/CEO to a customer's account.  

WSA was unable to locate the requested LOA.  Fitzgerald contacted WSA officials familiar with the November 16th transaction and based upon such conversations he recreated the LOA and dated it November 16, 1998.  WSA's Chairman/CEO then initialed the recreation, which was submitted to NYSE on November 16, 2000 (without disclosure of the recreation).  On November 22, 2000 the original LOA was located and submitted to NYSE on November 29, 2000 (with an apology for sending an "erroneous document" but without disclosure that said document was a recreation).

NYSE determined that the recreation of the LOA and its submission without proper disclosure violated NYSE Rule 440 and SEC Rules 17a-3 and 17a-4 (books and records).

The Hearing Panel imposed a Censure and $50,000 fine upon WSA and a Censure and $45,000 fine upon Fitzgerald.

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