Brokerage firm loses Nevada license

Friday, Jan. 10, 1997 | 11:59 a.m.

CARSON CITY -- Secretary of State Dean Heller said the brokerage license of Stratton Oakmont Inc. has been revoked for playing fast and loose with a Nevada account in the purchase of securities.

Stratton Oakmont, also disciplined in other states, is accused of engaging in "unethical or dishonest practices" in Nevada and by failing to supervise its sales representatives, Irving Stitsky and Jordan Shamah.

The two men took over the Nevada Trust Account, and without authorization, made frequent transactions within a three-month period that resulted in $80,000 in sales commissions for them, Heller said.

From January 1994 until April 1994, more than $1.1 million worth of securities were purchased without the authorization of the trustee of the account, according to the complaint. The account turned over more than 7.3 times or at an annual rate of 29 times, which the complaint said was excessive but generated commission for the salesmen.

In addition, the complaint said Stratton Oakmont Inc., was insolvent and failed to honor its legal obligations to Nevada clients.

The company has had its licenses suspended or revoked in Georgia, the District of Columbia, Indiana, Illinois and New Jersey. The National Association of Securities Dealers Inc. expelled the company from its membership, and a federal judge has issued a permanent injunction to stop the company from violating an order of the Securities and Exchange Commission.