Release: #4237-99 (CFTC Docket No. SD 99-3)
For Release: February 4, 1999
CFTC FILES DISQUALIFICATION ACTIONS AGAINST
FRANK BARBARINO AND FRANK D'AMATO, FLOOR BROKERS AT
THE NEW YORK MERCANTILE EXCHANGE
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that on February 3, 1999, it filed Notices of Intent to Revoke, Suspend or Restrict Registrations against Frank Barbarino and Frank D'Amato both of Staten Island, New York, registered floor brokers who traded on the New York Mercantile Exchange (NYMEX).
The Notice alleges that on January 9, 1991, Barbarino traded ahead of executable customer orders. Also on that date, according to the Notice, Barbarino's and D'Amato's employees intentionally and negligently misallocated customer orders and failed to relay executable customer orders to Barbarino, D'Amato and other floor brokers of their firm in a timely fashion, resulting in Barbarino trading for his personal account ahead of these orders.
The Notice further alleges that, on October 13, 1993, the Board of Directors of the NYMEX accepted Offers of Settlement, submitted by Barbarino and D'Amato, regarding the January 9, 1991 misconduct. On October 12, 1994, the Notice alleges, the Board of Directors of the NYMEX again accepted Offers of settlement, submitted by Barbarino and D'Amato, regarding their abuse and their employees' abuse of customer orders. These 1993 and 1994 NYMEX disciplinary actions resulted in cumulative sanctions of $40,000 in fines plus $15,500 in restitution, according to the Notice. The Notice further alleges that the disciplinary actions and the facts underlying the 1993 action constitute good cause under section 8a(3)(M) of the Commodity Exchange Act (CEA) to revoke, suspend or restrict both Barbarino's and D'Amato's floor broker registrations as authorized under section 8a(4) of the CEA.
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