Options Exchange Censures Four Dean Witter Brokers
CHICAGO (AP) _ The Chicago Board Options Exchange on Thursday announced disciplinary measures against six people, including four former Dean Witter Reynolds Inc. brokers, for violating of trading rules.
Without admitting or denying the charges against them, all six consented to censures and suspensions from association with any CBOE member for varying lengths of time.
Two of the men, including one of the former Dean Witter brokers, also were suspended temporarily from exchange membership.
Each of the former Dean Witter brokers was accused of numerous offenses including trading for customers’ accounts without proper authorization and executing trades that were unsuitable based on customers’ knowledge and experience in financial matters.
Two of the former Dean Witter brokers, Bruce A. Dembroski and David H. Coltin, worked in the company’s Burlington, Mass., office. Each was suspended for one year from association with any exchange member. Coltin also was suspended for one year from exchange membership.
Kenneth A. Rosenthal, a former broker in Dean Witter’s Boston office, was suspended for two years from association with any exchange member.
Michael W. Pursely, a former broker in Dean Witter’s Clearwater, Fla., office was suspended for nine months from association with any exchange member.
Also disciplined were two CBOE market makers, or independent floor traders, Gregory S. De Fotis and Jeffrey A. Rahn.
De Fotis was accused of failing to contribute to the maintenance of a fair and orderly market and was suspended for four days from exchange membership and from association with any member.
Rahn was accused of manipulating trades in such a way that the cost of trading was improperly reduced. He was fined $1,000 and suspended for two weeks from associating with exchange members.