Firm Name
COWEN & CO
Termination Type
Permitted to Resign
Broker Comment
COWEN & CO. HAS VERBALLY ALLEGED THAT A SERIES OF
UNAUTHORIZED TRADES WERE EFFECTED BY BRUCE PICCIRILLO. IN AN
AMENDMENT RECEIVED FROM PAINE, WEBBER, JACKSON & CURTIS, INC.,
PICCIRILLO DISCLOSED THAT UPON HIS LEAVING COWEN & CO., HE WAS
INFORMED THAT CERTAIN CUSTOMERS WERE QUESTIONING CERTAIN TRADES
THAT OCCURRED DURING THE PRECEDING MONTHS. HE FURTHER DISCLOSED
THAT THERE ARE FOUR INSTANCES, HOWEVER, WHERE HE AGREED TO
CANCEL THE TRADES AND PERSONALLY MAKE UP COWEN'S LOSS, IF ANY,
AS THERE WAS SOME CONFUSION REGARDING THE ORDERS. PICCIRILLO
MADE REFERENCE TO THE ACCOUNT OF LEONARD LEWIS - 10,000 SHARES,
GEORGE SHUMSKY - 3,500 SHARES, JOHN WETZEL - 2,000 SHARES, AND
LEON PRINCE - 2,000 SHARES, ALL OF LIFE CHEMISTRY AT 1 5/8. HE
ALSO MENTIONED THE ACCOUNT OF RICHARD PITITZ, SR., HARVEY
ROSEN, HARTLEY LORD, HAROLD DANZING AND ELLIS BISCOFF. A
COPY OF A LETTER TO PICCIRILLO FROM THE NYSE, DATED JULY 18,
1986, REGARDING THE ABOVE MATTERS. THE NYSE STATED THE
FOLLOWING: "AS YOU ARE AWARE, THE EXCHANGE HAS BEEN
INVESTIGATING CERTAIN TRANSACTIONS EFFECTED BY YOU WHILE YOU
WERE EMPLOYED BY COWEN & CO. AS YOU KNOW, APPROXIMATELY TWELVE
OF THE FIRM'S CUSTOMERS ALLEGED THAT YOU EXERCISED
DISCRETIONARY POWER IN THEIR ACCOUNTS WITHOUT THEIR KNOWLEDGE
OR AUTHORITY. THOSE ALLEGATIONS RELATED TO APPROXIMATELY 35
TRANSACTIONS, TOTALLING APPROXIMATELY $323,000. YOU HAVE
ACKNOWLEDGED THAT, ON AT LEAST SIX OCCASIONS, YOU EXERCISED
DISCRETION *SEE FAQ #1*