Eugene C. McCarthy, Vincent Papandrea and Anthony Picerni, all former specialists for LaBranche & Co., were censured and permanently barred today from the New York Stock Exchange for failing to cooperate in the exchange's investigation of illegal trading by specialists from 1999 through June 2003, according to Scott Peterson, spokesman for NYSE Regulation. The three agreed to the actions without admitting or denying the charges.
The ongoing investigation is focused on allegations that several LaBranche specialists stepped in between customer orders that should have been paired off and also traded ahead of customer orders. In March 2004, the firm settled with the NYSE by paying a $63.5 million fine, without admitting or denying the charges.
"These three individuals chose expulsion from the industry rather than face further questioning. The actions taken against them exemplify the importance we place upon protecting the integrity of the marketplace by requiring full cooperation in investigations," Susan Light, vice president of enforcement at NYSE Regulation said in a news release. "NYSE Regulation is continuing to pursue those specialists and clerks who abused the public's trust and disadvantaged customer orders."