Broker barred, another fined NASD finds instances of forgery, inadequate capital reserves

October 22, 1997|By Bill Atkinson | Bill Atkinson,SUN STAFF

The National Association of Securities Dealers barred a Towson broker from the industry and slapped a second broker with a $10,000 fine, according to association documents released yesterday.

Robert L. Swick, who was reached yesterday at the Towson Insurance Agency in Baltimore, was barred from the brokerage industry for allegedly forging customers' signatures on documents, according to the NASD. He is subject to a $50,000 fine if he joins another brokerage, the NASD said.

NASD officials also fined Towson-based Chesapeake Securities Research Corp. and Thomas T. Taylor, its president and founder, $10,000 for alleged violations that included not maintaining enough capital to support the number of trades it made in its own account.

Swick and Taylor neither admitted nor denied wrongdoing.

Swick said yesterday that he did not have time to discuss the NASD sanction because he was with customers.

Taylor said that, as part of his agreement with the NASD, he could not comment. "It is a situation that I can't say very much other than there was no loss of client money involved," he said.

A spokesman for NASD Regulation Inc., the subsidiary of the National Association of Securities Dealers that metes out penalties and oversees the nation's 500,000 registered brokers and 5,500 firms, declined to comment.

According to the NASD, Swick entered the brokerage industry in 1991 and worked for both Pruco Securities Corp. and Prudential Insurance Company of America.

In 1995, he allegedly "forged the signatures" of five customers on takeover request forms, the NASD said. He also allegedly forged their signatures on letters asking the company to let him take over managing the customers' policies.

Swick resigned from Prudential Insurance in 1993 and from Pruco Securities in February 1996, the documents said.

He signed the NASD's "letter of acceptance, waiver and consent" -- the settlement agreement -- in May.

The actions taken against Chesapeake Securities alleged that the company violated minimum capital requirements in 1994.

The firm also conducted several equity offerings that violated NASD rules, the NASD documents said. In offerings in 1993, the NASD found, "investors' funds were not returned promptly" after the offerings' termination dates.

Taylor said he signed the NASD settlement agreement in June. He said it would have cost the company more to "adjudicate the matter with them than to simply accept their findings."

Pub Date: 10/22/97

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