NEW YORK -- The New York Stock Exchange said yesterday that it has censured a former trader at Alex. Brown & Sons Inc. and suspended his exchange membership for six months for disguising $180,000 in losses on government securities.
The trader, Anthony DeMarco, agreed to the penalties without admitting or denying guilt. An exchange spokesman said yesterday that no disciplinary case was instituted against Alex. Brown.
The trades occurred in January 1989, according to an exchange report released for publication yesterday. Mr. DeMarco, who dealt exclusively for the firm's own account, had accumulated losses of about $180,000 and attempted to mask them with four fictitious transactions.
He did not personally gain from the trades, the exchange said.
"The firm detected inaccurate entries in the books of his trading desk as part of its routine daily review and then it was disclosed to the exchange," said Daniel McIntyre, Alex. Brown's assistant general counsel.
No customer accounts were involved.
Mr. DeMarco was first suspended pending an investigation and then dismissed, Mr. McIntyre said, adding that he had not been a longtime employee.
The trades were all made at the New York office. A majority of the firm's government bond trading is done at its headquarters in Baltimore.
Jamie McDonald, an Alex. Brown spokeswoman, said she was aware of no changes in policy or practices because of the incident.