CFTC News Release: 4352-99
For Release: December 22, 1999
CFTC ISSUES ORDER ACCEPTING OFFERS OF SETTLEMENT FROM FRANK BARBARINO AND FRANK D'AMATO, FINDING THAT BARBARINO AND D'AMATO ARE SUBJECT TO STATUTORY DISQUALIFICATION AND RESTRICTING THEIR REGISTRATIONS AS FLOOR BROKERS AT THE NYMEX
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that on December 21, 1999, it accepted offers of settlement from Frank Barbarino and Frank D'Amato, both of Staten Island, New York, who are registered floor brokers and members of the New York Mercantile Exchange (NYMEX). The CFTC filed Notice of Intent to Revoke, Suspend or Restrict Registration against Barbarino and D'Amato on February 3, 1999 (see CFTC News Release 4237-99, February 4, 1999).
The Notice alleges that on January 9, 1991, Barbarino traded ahead of executable customer orders, and 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 also 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 and that Barbarino was fined $10,000 and D'Amato was fined $5,000, with each of them ordered to pay restitution of $15,500.
The Notice further alleges that on October, 12, 1994, the Board of Directors of the NYMEX accepted offers of settlement, submitted by Barbarino and D'Amato, regarding their abuse and their employees' abuse of customer orders for which they were fined $12, 500 each. As alleged, these disciplinary actions instituted against Barbarino and D'Amato, 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.
Settlement Restricts Their Registrations for Two Years, Among Other Sanctions
Barbarino and D'Amato, without admitting or denying the charges in the Notice, consented to the entry of a CFTC order that restricts their registrations for two years and provides for, among other things, the imposition of a sponsor, a dual trading ban prohibiting Barbarino and D'Amato from trading directly or indirectly on behalf of themselves, and requires Barbarino and D'Amato to provide their customers with written notice of their restricted registrations.
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