Table of Contents

Enforcement Milestones .......................................................................................... 2

Enforcement Actions Initiated by the Commission ............................................... 3

Fiscal 2006 Enforcement Cases by Program Area................................................. 4

Investigations of Possible Violations of the Acts

Administered by the Commission..................................................................... 19

Right to Financial Privacy..................................................................................... 19

SEC Total Investor Contacts by Fiscal Year........................................................ 20

Ten Most Common Complaints During Fiscal 2006............................................ 21

Unconsolidated Financial Information for Broker-Dealers ................................ 22

Unconsolidated Annual Revenues and Expenses for

Broker-Dealers Doing a Public Business.......................................................... 23

Unconsolidated Balance Sheet for Broker-Dealers

Doing a Public Business .................................................................................... 24

Unconsolidated Revenues and Expenses for

Carrying/Clearing Broker-Dealers ................................................................... 25

Unconsolidated Balance Sheet for Carrying/Clearing Broker-Dealers .............. 26

Transaction Activity in Equities, Options and Security Futures ....................... 27

Securities Listed on Exchanges ............................................................................ 28

Value of Stocks Listed on Exchanges ................................................................... 29

SELECT SEC AND MARKET DATA

FISCAL 2006


• Obtained orders in SEC judicial and administrative

proceedings requiring securities violators to disgorge

illegal profits of approximately $2.3 billion and to 

pay penalties of approximately $975 million.

•	 Sought orders barring 97 defendants and respondents

from serving as officers or directors of public companies.

•	 Sought emergency relief from federal courts in

the form of temporary restraining orders (TROs)

to halt ongoing fraudulent conduct in 37 actions,

and sought asset freezes in 46 actions.

•	 Filed 7 actions to enforce investigative subpoenas.

•	 Halted trading in securities of 71 issuers about

which there was inadequate public disclosure.

In SEC-related criminal cases, prosecutors filed indictments, 

informations, or contempts in 92 cases.

Table 1

ENFORCEMENT MILESTONES 

FISCAL 2006


Table 2

FISCAL 2006 ENFORCEMENT ACTION SUMMARY

BY PRIMARY CLASSIFICATION

(Each action initiated has been included in only one category listed below, even though 

many actions involved multiple allegations and may fall under more than one category. 

The number of defendants and respondents is noted parenthetically.)

Primary Classification Civil Actions

Administrative 

Proceedings Total

% of Total 

Actions

Issuer Reporting and Disclosure 63 (145) 75 (94) 138 (239) 24%

Broker Dealer 6 (13) 69 (94) 75 (107) 13%

Investment Advisers 17 (52) 70 (109) 87 (161) 15%

Securities Offering Cases 46 (213) 15 (19) 61 (232) 11%

Delinquent Filings 0 (0) 91 (169) 91 (169) 16%

Insider Trading Cases 37 (85) 9 (9) 46 (94) 8%

Market Manipulation Cases 22 (75) 5 (7) 27 (82) 5%

Civil Contempt 21 (29) 0 (0) 21 (29) 4%

Transfer Agents 2 (7) 4 (4) 6 (11) 1%

Municipal Offering 0 (0) 8 (9) 8 (9) 1%

Self-Regulatory Organization 0 (0) 1 (1) 1 (1) 0%

Investment Companies 2 (9) 6 (12) 8 (21) 1%

Miscellaneous Cases 2 (3) 3 (5) 5 (10) 1%

TOTALS 218 (631) 356 (532) 574 (1163) 100%


Table 3

FISCAL 2006 ENFORCEMENT CASES

LISTED BY PROGRAM AREA

Broker -Dealer

In the Matter of Louis Montaino 34-52595 10/12/2005

In the Matter of Michael Eisemann 34-52594 10/12/2005

In the Matter of Kermit Silva 34-52617 10/17/2005

In the Matter of Instinet, LLC, et al. 34-52623 10/18/2005

In the Matter of Robert Henricks 34-52833 10/31/2005

In the Matter of Bill Laron Stapleton 34-52703 10/31/2005

In the Matter of Kraig L. Kibble 34-52728 11/03/2005

In the Matter of Van D. Greenfield, et al. 34-52744 11/07/2005

In the Matter of Michael Garbo 34-52788 11/17/2005

SEC v. Berton M. Hochfeld, et al. LR-19474 11/23/2005

In the Matter of Philip D. Phillips 34-53033 12/28/2005

In the Matter of JB Oxford Holdings, Inc. 34-53137 01/18/2006

In the Matter of Michael J. Healey 34-53144 01/19/2006

In the Matter of Berton M. Hochfeld 34-53160 01/20/2006

In the Matter of Stephen J. Horning 34-53163 01/20/2006

In the Matter of Daniel Calugar 34-53179 01/25/2006

In the Matter of James J. Caprio 34-53178 01/25/2006

In the Matter of Kimberly J. Carrella, et al. 34-53198 01/31/2006

In the Matter of James G. Lewis 34-53210 02/02/2006

In the Matter of James Y. Lin 34-53209 02/02/2006

In the Matter of Glen E. Miller 34-53335 02/17/2006

In the Matter of Merrill Lynch, Pierce, Fenner & Smith, Incorporated 34-53473 03/13/2006

In the Matter of Bear, Stearns & Co., Inc., et al. 33-8668 03/16/2006

In the Matter of Dominick J. Savino 34-53492 03/16/2006

In the Matter of Marion D. Sherrill 34-53611 04/06/2006

In the Matter of Metropolitan Life Insurance Company 34-53624 04/10/2006

In the Matter of Thomas J. Gerbasio 34-53622 04/10/2006

In the Matter of INET ATS, Inc. 34-53631 04/12/2006

In the Matter of James Joseph Conway 34-53722 04/25/2006

In the Matter of Paul Bornstein 34-53726 04/26/2006

In the Matter of James R. Mancuso 34-53738 04/28/2006

In the Matter of Kevin J. Barton 34-53741 04/28/2006

In the Matter of Noel J. Belmonte 34-53740 04/28/2006

In the Matter of Philip J. Hourican 34-53739 04/28/2006

SEC v. Dennis A. Martin LR-19691 05/08/2006

SEC v. Morgan Stanley & Co. Incorporated LR-19693 05/10/2006

In the Matter of Konstantine Drakopoulos 34-53792 05/11/2006

Name of Case Release Number Date Filed


Name of Case Release Number Date Filed

In the Matter Donna Yeager, et al. 34-53801 05/15/2006

In the Matter Brandon T. Bush 34-53813 05/16/2006

In the Matter of Crowell, Weedon & Co. 34-53847 05/22/2006

In the Matter of Carl Cunzio 34-53884 05/30/2006

In the Matter of Jeffrey “Yefim” Bassin 34-53885 05/30/2006

In the Matter of Otto Kozak 34-53886 05/30/2006

In the Matter of Patrick McFadden 34-53883 05/30/2006

In the Matter of Robert Kozak, et al. 34-53887 05/30/2006

In the Matter of Joseph R. Huard, Jr., et al. 34-53904 05/31/2006

In the Matter of Bear, Stearns & Co. Inc., et al. 33-8684 05/31/2006

In the Matter of John F. Helbock, et al. 34-53905 05/31/2006

In the Matter of Robert W. Oakes, Jr. 34-53906 05/31/2006

In the Matter of Angelo Paul Koupas 34-53926 06/01/2006

In the Matter of Christopher Roundtree 34-53925 06/01/2006

In the Matter of Kyle Rowe 34-53927 06/01/2006

In the Matter of Salomon Grey Financial Corporation 34-53928 06/01/2006

In the Matter of Frank Monroig 34-53974 06/12/2006

In the Matter of Morgan Stanley & Co. Incorporated, et al. 34-54047 06/27/2006

In the Matter of Todd J. Cohen 34-54108 07/06/2006

In the Matter of Hector J. Garcia 34-54116 07/10/2006

In the Matter of IFMG Securities, Inc. 33-8720 07/13/2006

In the Matter of Herzog, Heine, Geduld, LLC, et al. 34-54148 07/14/2006

In the Matter of Senior Resources Asset Fund, LLC, et al. 33-8723 07/17/2006

In the Matter of Gerard McCallion 34-54196 07/24/2006

In the Matter of Robert P. Hetzer 34-54219 07/26/2006

SEC v. Robert J. Bradbury, et al. LR-19792 08/03/2006

In the Matter of Peter D. Kirschner 34-54281 08/08/2006

SEC v. Peter D. Kirschner, et al. LR-19795 08/08/2006

In the Matter of Emanuele A. Scarso 34-54349 08/22/2006

In the Matter of John M. Lucarelli 34-54361 08/25/2006

In the Matter of Prudential Equity Group, LLC 34-54371 08/28/2006

SEC v. Frederick J. O’Meally, et al. LR-19813 08/28/2006

In the Matter of Robert Vitale 34-54393 08/31/2006

In the Matter of Salvatore Puccio 34-54392 08/31/2006

In the Matter of Dawn M. Reese 34-54468 09/18/2006

In the Matter of Scott G. Monson 40-27497 09/25/2006

In the Matter of Maurice Servetnick 34-54535 09/28/2006

In the Matter Robert K. Malkin, et al. 33-8747 09/29/2006

Contempt Civil

SEC v. Randall T. Treadwell LR-19442 10/24/2005

SEC v. Lawrence Shaw None 10/26/2005

SEC v. Credit First Fund, L.P., et al. LR-19497 12/15/2005


SEC v. Shea Silva None 01/03/2006

SEC v. Lazare Industries, Inc., et al. None 01/27/2006

SEC v. U.S. Wind Farming, Inc., et al. LR-19546 01/27/2006

SEC v. George A. Todt, et al. None 02/10/2006

SEC v. Neulan D. Midkiff, et al. LR-19620 03/21/2006

SEC v. Jon H. Marple None 03/27/2006

SEC v. Wallace Nakano None 03/28/2006

SEC v. David R. Lund, et al. LR-19660 03/31/2006

SEC v. James Vincent O’Brien, et al. LR-19646 04/03/2006

SEC v. Michael Lauer None 05/04/2006

SEC v. Luis M. Cornide None 05/09/2006

SEC v. Michael J. Wright LR-19742 06/07/2006

SEC v. John Kim None 06/13/2006

SEC v. Northshore Asset Management, et al. LR-19733 06/14/2006

SEC v. Gary Lynn McDuff None 06/21/2006

SEC v. Anthony P. Caliendo None 07/10/2006

SEC v. Michael A. Lomas LR-19836 09/06/2006

SEC v. Milon Lyle Brock None 11/22/2006

Delinquent Filing: Issuer Reporting

In the Matter of American Plastics & Chemicals, Inc., et al. 34-52560 10/04/2005

In the Matter of Finantra Capital, Inc, et al. 34-52883 10/04/2005

In the Matter of BrandAid Marketing Corporation 34-52585 10/12/2005

In the Matter of Diagnostic International, Inc. 34-52584 10/12/2005

In the Matter of Financial Systems Group, Inc. 34-52590 10/12/2005

In the Matter of Homes For America Holdings, Inc. 34-52589 10/12/2005

In the Matter of Ingenuus Corp. 34-52588 10/12/2005

In the Matter of Mineral Energy and Technology Corporation 34-52587 10/12/2005

In the Matter of Realigent, Inc. 34-52586 10/12/2005

In the Matter of Intercallnet, Inc. 34-52641 10/19/2005

In the Matter of Western United Holding Company 34-52661 10/25/2005

In the Matter of Team Communications Group, Inc. 34-52737 11/04/2005

In the Matter of Air Packaging Technologies, Inc., et al. 34-52751 11/08/2005

In the Matter of Microage, Inc., et al. 34-52751 11/08/2005

In the Matter of American Group, Inc. 34-52771 11/14/2005

In the Matter of Oretech, Inc. 34-52988 12/21/2005

In the Matter of eSafetyworld, Inc. 34-53087 01/10/2006

In the Matter of Friedman’s Inc. 34-53086 01/10/2006

In the Matter of Safe Transportation Systems, Inc. 34-53141 01/19/2006

In the Matter of Metropolitan Mortgage & Securities Co., Inc. 34-53183 01/27/2006

In the Matter of Summit Securities, Inc. 34-53184 01/27/2006

Name of Case Release Number Date Filed


In the Matter of Riverstone Networks, Inc. 34-53268 02/10/2006

In the Matter of AM Communications, Inc. 34-53289 02/15/2006

In the Matter of Aries Holdings, Inc. 34-53290 02/15/2006

In the Matter of AuctionDiner.com, Inc. 34-53291 02/15/2006

In the Matter of BIOMED Research Technologies, Inc. 34-53292 02/15/2006

In the Matter of BMC Industries, Inc. 34-53293 02/15/2006

In the Matter of Charm Capital Corp. 34-53294 02/15/2006

In the Matter of Cumberland Technologies, Inc. 34-53295 02/15/2006

In the Matter of Datatec Systems, Inc. 34-53296 02/15/2006

In the Matter of Datec Group, Ltd. 34-53297 02/15/2006

In the Matter of Enviro-Recovery, Inc. 34-53298 02/15/2006

In the Matter of Frontier Insurance Group, Inc. 34-53299 02/15/2006

In the Matter of Globalstar Telecommunications Limited 34-53300 02/15/2006

In the Matter of Host Funding, Inc. 34-53301 02/15/2006

In the Matter of Leadville Corporation 34-53302 02/15/2006

In the Matter of Level Jump Financial Group 34-53303 02/15/2006

In the Matter of Maritek Corporation 34-53304 02/15/2006

In the Matter of Marketing Educational Corporation 34-53305 02/15/2006

In the Matter of Mega-C Power Corporation, 

f/k/a Net Capital Ventures Corp.

34-53306 02/15/2006

In the Matter of Model Capital Corp. 34-53307 02/15/2006

In the Matter of Newstar Media, Inc. 34-53308 02/15/2006

In the Matter of Olicom A/S 34-53309 02/15/2006

In the Matter of Parade Holdings, Inc. 34-53310 02/15/2006

In the Matter of Pepper Capital Corp. 34-53311 02/15/2006

In the Matter of Reliance Group Holdings, Inc. 34-53312 02/15/2006

In the Matter of Westergaard.com, Inc. 34-53313 02/15/2006

In the Matter of iBIZ Technology Corp. 34-53323 02/16/2006

In the Matter of Eagle Environmental Technologies, LTD 34-53373 02/27/2006

In the Matter of M & A West, Inc. 34-53389 02/28/2006

In the Matter of GMC Holding Corporation 34-53448 03/08/2006

In the Matter of Gary Player Direct, Inc., et al. 34-53456 03/09/2006

In the Matter of Biopulse International, Inc., et al. 34-53465 03/10/2006

In the Matter of Bio-Heal Laboratories, Inc. 34-53550 03/24/2006

In the Matter of International Biochemical Industries, Inc. 34-53590 04/04/2006

In the Matter of Bullhide Corp., et al. 34-53714 04/25/2006

In the Matter of Regent Energy Corp., et al. 34-53712 04/25/2006

In the Matter of Lemenis Ltd. 34-53724 04/26/2006

In the Matter of MCSi, Inc. 34-53759 05/04/2006

In the Matter of Suprema Specialties, Inc. 34-53779 05/10/2006

In the Matter of Quintus Corporation 34-53802 05/15/2006

In the Matter of Universal Medical Systems, Inc. 34-53915 06/01/2006

Name of Case Release Number Date Filed


In the Matter of America’s Sports Voice, Inc., et al. 34-53986 06/15/2006

In the Matter of Auspex Liquidating Corp. 34-53991 06/15/2006

In the Matter of Legacy Mining Ltd. 34-53992 06/15/2006

In the Matter of Optimark Holdings, Inc. 34-53989 06/15/2006

In the Matter of Pillowtex Corporation 34-53987 06/15/2006

In the Matter of Polar Cargo Systems, Inc. 34-53990 06/15/2006

In the Matter of The Arlen Corporation 34-53988 06/15/2006

In the Matter of Gizmo Company, et al. 34-54072 06/30/2006

In the Matter of 2DoTrade, Inc. 34-54157 07/17/2006

In the Matter of Cybercare, Inc. 34-54188 07/21/2006

In the Matter of Hancock Holdings, Inc., et al. 34-54201 07/25/2006

In the Matter of Andover Apparel Group, Inc., et al. 34-54212 07/26/2006

In the Matter of Digital Transmission Systems, Inc., et al. 34-54212 07/26/2006

In the Matter of Go Online Networks Corp., et al. 34-54212 07/26/2006

In the Matter of Bilogic, Inc., et al. 34-54293 08/09/2006

In the Matter of Paystar Corp., et al. 34-54370 08/28/2006

In the Matter of AIC International, Inc., et al. 34-54404 09/06/2006

In the Matter of Amour Fiber Core, Inc., et al. 34-54432 09/13/2006

In the Matter of Indigenous Global Development Corporation 34-54431 09/13/2006

In the Matter of Grupo Elektra, S.A. de C.V. 34-54447 09/14/2006

In the Matter of Grupo Iusacell, S.A. de C.V. 34-54446 09/14/2006

In the Matter of TV Azteca, S.A. de C.V. 34-54445 09/14/2006

In the Matter of Naturally Niagara Beverage Corporation 34-54472 09/20/2006

In the Matter of China Energy Savings Technology, Inc. 34-54502 09/26/2006

In the Matter of U.S. Gas & Electric, Inc. 34-54516 09/26/2006

In the Matter of World Information Technology, Inc. 34-54506 09/26/2006

In the Matter of China Continental, Inc. and Xcelera, Inc. 34-54523 09/27/2006

In the Matter of Cycomm International, Inc., et al. 34-54523 09/27/2006

In the Matter of Geographics, Inc., et al. 34-54518 09/27/2006

Insider Trading

SEC v. Robert B. Petrosky LR-19429 10/12/2005

In the Matter Frank J. Furino 34-52636 10/19/2005

SEC v. Lohmus Haavel & Viisemann, et al. LR-19450 11/01/2005

SEC v. One or More Unknown Purchasers of Call Options LR-19457 11/03/2005

In the Matter of Ralph D. Casbarro 34-52762 11/10/2005

SEC v. Gary D. Herwitz, et al. LR-19499 12/19/2005

In the Matter of Robert Breed 34-53010 12/22/2005

SEC v. Gregory N. Champe LR-19514 12/22/2005

SEC v. Lee David Edelman LR-19518 01/03/2006

SEC v. Thomas J. Bucknum LR-19528 01/12/2006

SEC v. Deog Kyoon Jeong LR-19531 01/18/2006

In the Matter of Robert Y. Joo 34-53169 01/23/2006

Name of Case Release Number Date Filed


SEC v. Mark Kishell LR-19538 01/23/2006

SEC v. Victor J. Menezes LR-19549 01/31/2006

SEC v. William A. Day LR-19553 02/02/2006

SEC v. Sanjiv S. Agarwala LR-19568 02/16/2006

SEC v. Alan Cao, et al. LR-19586 03/02/2006

SEC v. Mitchell Drucker, et al. LR-19587 03/02/2006

In the Matter of Michael K.C. Tom IA-2494 03/08/2006

SEC v. Langley Partners, L.P., et al. LR-19607 03/14/2006

In the Matter of Sanjay Singh 33-8673 03/21/2006

SEC v. A.B. Watley Group, Inc., et al. LR-19616 03/21/2006

SEC v. Terry F. Favilla, et al. LR-19628 03/29/2006

SEC v. Alexander J. Yaroshinsky LR-19636 04/03/2006

SEC v. Xiangsha Feng LR-19648 04/06/2006

SEC v. Diane Karaoulis LR-19649 04/10/2006

SEC v. Kenneth M. Gerland, et al. LR-19649 04/10/2006

SEC v. Patrick I. Garvey LR-19649 04/10/2006

SEC v. Garner Anthony LR-19654 04/11/2006

SEC v. David N. Anderson, et al. LR-19665 04/24/2006

In the Matter of William B. Deakins 34-53719 04/25/2006

SEC v. Nelson J. Obus, et al. LR-19667 04/25/2006

SEC v. Deephaven Capital Management, LLC, et al. LR-19683 05/02/2006

SEC v. Leonard P. Leclerc, et al. LR-19684 05/02/2006

SEC v. Robert J. Downs, Jr. et al. LR-19698 05/15/2006

In the Matter of Paul F. Coughlin 34-53845 05/19/2006

SEC v. Frederick W. Anton III LR-19712 05/31/2006

SEC v. Matthew Roszak, et al. LR-19722 06/08/2006

SEC v. Ricardo Cavallero, et al. LR-19731 06/15/2006

SEC v. Justin Huscher LR-19736 06/22/2006

SEC v. Petco Animal Supplies, Inc. LR-19778 07/18/2006

SEC v. John J. Kahl, Jr., et al. LR-19767 07/19/2006

In the Matter of Justin Huscher IA-2536 07/21/2006

SEC v. Harish K. Pimplaskar, et al. LR-19777 07/27/2006

SEC v. Stewart P. “Tom” Mitchell LR-19816 08/30/2006

SEC v. Graham J. Lefford LR-19845 09/26/2006

Investment Adviser

In the Matter of Angelo Haligiannis IA-2441 10/12/2005

In the Matter of Robert Radano IA-2442 10/12/2005

SEC v. Theodore Charles Sihpol III LR-19422 10/12/2005

SEC v. Mark R. Conway, et al. LR-19460 11/04/2005

SEC v. Vincent A. Lenarcic, Jr., et al. LR-19478 11/21/2005

In the Matter of Joseph A. Ferona, Jr. IA-2447 11/25/2005

In the Matter of Federated Investment Management Company, et al. 34-52839 11/28/2005

In the Matter of James A. Franklin, Jr. 34-52847 11/29/2005

Name of Case Release Number Date Filed
10

In the Matter of Joseph W. Daniel IA-2450 11/29/2005

In the Matter of Ameriprise Financial Services, Inc. 33-8637 12/01/2005

In the Matter of Ameriprise Financial, Inc. IA-2451 12/01/2005

In the Matter of Maxwell Investments, LLC, et al. 33-8640 12/01/2005

In the Matter of Millennium Partners, LP., et al. 33-8639 12/01/2005

In the Matter of Renn Capital Group, Inc. IA-2454 12/01/2005

In the Matter of Gerson Asset Management, Inc, et al. 34-52880 12/02/2005

In the Matter John S. Peffer 34-52962 12/16/2005

In the Matter of Martin J. Druffner 34-52963 12/16/2005

In the Matter of Skifter Ajro 34-52964 12/16/2005

In the Matter of Veras Capital Master Fund, et al. 33-8646 12/22/2005

SEC v. Brent William Federighi, et al. LR-19510 12/22/2005

In the Matter Bradford C. Bleidt 34-53023 12/27/2005

In the Matter of Schultz Investment Advisors, Inc., et al. 33-8650 12/28/2005

In the Matter of David M. Faubert 34-53089 01/10/2006

In the Matter of N2K Trading Academy, Inc. IA-2479 02/03/2006

In the Matter of Terry Harris IA-2480 02/03/2006

In the Matter of Jack Anthony Huggins IA-2481 02/07/2006

In the Matter of Jon M. Knight IA-2482 02/07/2006

In the Matter of Scott R. Sacane IA-2483 02/07/2006

In the Matter of Morgan Keegan & Co 34-53251 02/08/2006

In the Matter of Thomas J. Robbins IA-2485 02/08/2006

In the Matter of Jonathan M. Rozek 34-53340 02/21/2006

In the Matter of New England Securities Corp. IA- 2489 02/21/2006

In the Matter of Thomas W. McConnell 34-53339 02/21/2006

SEC v. Kirk S. Wright, et al. LR-19581 02/27/2006

In the Matter of J. Douglas Schmidt IA-2491 02/28/2006

SEC v. Michael A. Liberty, et al. LR-19601 03/08/2006

SEC v. BMA Ventures, Inc., et al. LR-19606 03/10/2006

In the Matter of John Kim IA-2496 03/16/2006

In the Matter of Kautilya “Tony” Sharma 34-53507 03/17/2006

In the Matter of James R. Dickey 34-53555 03/27/2006

SEC v. Jamerica, Inc., et al. LR-19632 03/29/2006

In the Matter of Global Crown Capital, LLC, et al. IA-2503 03/30/2006

In the Matter of Jon E. Hankins IA-2506 04/03/2006

SEC v. David L. McMillan LR-19658 04/04/2006

In the Matter of Brad A. Weaver 34-53627 04/10/2006

SEC v. David A. Dadante LR-19662 04/18/2006

In the Matter of Kieran J. Dale IA-2511 04/19/2006

In the Matter of Sharon E. Vaughn, et al. 34-53680 04/19/2006

SEC v. CMG-Capital Management Group Holding Company, LLC, et al. LR-19680 05/01/2006

In the Matter of David Henry Disraeli, et al. 33-8682 05/05/2006

Name of Case Release Number Date Filed
11

In the Matter of Hutchens Investment Management, Inc., et al. IA-2514 05/09/2006

In the Matter of Samuel Israel II, et al. 34-53775 05/09/2006

SEC v. James Tambone, et al. LR-19708 05/19/2006

In the Matter of Bruce Lieberman IA-2517 05/26/2006

In the Matter of Geek Securities, Inc., et al. 34-53881 05/30/2006

In the Matter of CapitalWorks Investment Partners, LLC, et al. IA-2520 06/01/2006

SEC v. Frank J. Russo, et al. LR-19718 06/01/2006

In the Matter of Jeffrey L. Gibson 34-53939 06/05/2006

In the Matter of Robert E. Shannon 34-54132 06/08/2006

In the Matter of Kenneth W. Corba IA-2523 06/16/2006

In the Matter of Evan Misshula 33-8714 06/21/2006

In the Matter of Weiss Research, Inc., et al. IA-2525 06/22/2006

In the Matter of Wendy Feldman Purner 34-54068 06/29/2006

SEC v. Wendy Feldman Purner LR-19748 06/29/2006

In the Matter of Steven A. Gilman, et al. 34-54091 07/03/2006

In the Matter of Veritas Financial Advisors, LLC, et al. 34-54098 07/05/2006

In the Matter of Warwick Capital Management, Inc., et al. IA-2530 07/06/2006

In the Matter of Richard W. Deboe 34-54114 07/10/2006

In the Matter of Terry F. Allen IA-2535 07/12/2006

In the Matter of Waddell & Reed, Inc., et al. IA-2537 07/24/2006

In the Matter of Michael L. Hershey IA-2538 07/26/2006

In the Matter of Warren Lammert, et al. 33-8727 07/31/2006

In the Matter of Won Charlie Yi IA-2541 08/03/2006

SEC v. Knox H. Fugua, et al. LR-19815 08/28/2006

In the Matter of Gartmore Mutual Fund Capital Trust IA-2548 09/07/2006

In the Matter of Kensington Investment Group, Inc. IA-2545 09/07/2006

In the Matter of Numeric Investors LLC IA-2546 09/07/2006

In the Matter of Putnam Investment Management, LLC IA-2547 09/07/2006

In the Matter of The Dreyfus Corporation IA-2549 09/07/2006

SEC v. AA Capital Partners, Inc., et al. LR-19826 09/12/2006

In the Matter of Vincent Montagna IA-2551 09/22/2006

In the Matter of BISYS Fund Services, Inc. IA-2554 09/26/2006

In the Matter of Brendan E. Murray IA-2557 09/26/2006

In the Matter of Conrad P. Seghers IA-2555 09/26/2006

In the Matter of James A. DeMatteo IA-2556 09/26/2006

In the Matter of Deutsche Investment Management Americas, Inc. IA-2558 09/28/2006

SEC v. C. Wesley Rhodes, Jr. LR-19855 09/29/2006

Investment Company

SEC v. Wood River Capital Management, LLC, et al. LR-19428 10/13/2005

SEC v. SBM Investment Certificates, Inc., et al. LR-19638 04/04/2006

In the Matter of Unified Fund Services, Inc., et al. 34-53762 05/05/2006

In the Matter of Vaughn Weimer 40-27313 05/05/2006

Name of Case Release Number Date Filed
12

In the Matter of Delaware Service Company, Inc. 40-27473 08/30/2006

In the Matter of James A. Casselberry, Jr. 40-2550 09/14/2006

In the Matter of Dunham & Associates Holdings, Inc. 33-8740 09/22/2006

In the Matter of Strong Capital Management, Inc. IA-2560 09/29/2006

Issuer Reporting and Disclosure

In the Matter of Duane Kimble, CPA, et al. 34-52554 10/03/2005

SEC v. Duane Kimble, et al. LR-19416 10/03/2005

SEC v. Fred Gold, et al. LR-19417 10/06/2005

In the Matter of John Houldsworth, CA 34-52582 10/11/2005

In the Matter of Thomas Hauke, CPA 34-52597 10/13/2005

SEC v. Brandmakers, Inc., et al. LR-19432 10/18/2005

SEC v. Brian Crowley LR-19454 11/02/2005

SEC v. Dale Schulz LR-19454 11/02/2005

SEC v. David G. Zilli LR-19455 11/02/2005

SEC v. Ernie Rosenberg LR-19454 11/02/2005

SEC v. Frank Lysiak LR-19454 11/02/2005

SEC v. Larry Stone LR-19454 11/02/2005

SEC v. Ritchie Langfield LR-19454 11/02/2005

SEC v. Robert Henuset LR-19454 11/02/2005

In the Matter of Eric Tyra, CPA 34-52726 11/03/2005

In the Matter of Salvatore Censoprano, CPA 34-52763 11/10/2005

SEC v. Joanthan D. Nelson, et al. LR-19467 11/16/2005

In the Matter of John D. Parson, CPA, et al. 34-52792 11/18/2005

SEC v. Friedman’s Inc. LR-19477 11/30/2005

In the Matter of Joseph T. Boyle, CPA 34-52878 12/02/2005

In the Matter of Gilbert Bergsman, CPA, et al. 34-52959 12/15/2005

SEC v. eSafety World, Inc., et al. LR-19494 12/15/2005

In the Matter of Kenneth R. Lecrone, CPA 33-8647 12/22/2005

In the Matter of Applix, Inc. 33-8651 01/04/2006

SEC v. Alan C. Goldsworthy, et al. LR-19521 01/04/2006

SEC v. McAfee, Inc. LR-19520 01/04/2006

In the Matter of Pegasus Satellite Communications, Inc., et al. 33-8653 01/11/2006

In the Matter of Herbert J. Mortland, CPA, et al. 34-53162 01/20/2006

SEC v. Stansbury Holdings Corporation, et al. LR-19537 01/20/2006

SEC v. Thomas P. Clark LR-19548 01/27/2006

SEC v. Ronald Ferguson, et al. LR-19552 02/02/2006

In the Matter of Cummins Inc. 34-53236 02/07/2006

In the Matter of Lawrence A. Stoler, CPA 33-8660 02/09/2006

SEC v. American International Group, Inc. LR-19560 02/09/2006

SEC v. Lori G. Addison LR-19564 02/14/2006

In the Matter of Kevin M. Hall, CPA, et al. 34-53326 02/16/2006

In the Matter of Asia4Sale.com, Inc. 34-53336 02/17/2006

Name of Case Release Number Date Filed
13

In the Matter of Edward A. Heil, CPA 34-53330 02/17/2006

In the Matter of Axum, Incorporated 33-8680 02/21/2006

In the Matter of Thomas J. Yoho, CPA 34-53344 02/22/2006

In the Matter of Geoffrey Jie Wei, CPA (China) 34-53378 02/27/2006

In the Matter of Gregory G. Nelson, CPA 34-53380 02/27/2006

In the Matter of Helen Haiwen He 33-8664 02/27/2006

In the Matter of Leonard Goldner 34-53375 02/27/2006

In the Matter of Sun Communities, Inc., et al. 33-8665 02/27/2006

SEC v. Jeffrey P. Jorissen, et al. LR-19580 02/27/2006

SEC v. NetEase.com LR-19578 02/27/2006

In the Matter of Elsie M. Leung, CPA 34-53387 02/28/2006

In the Matter of Michael A. Conway, CPA 34-53391 03/01/2006

In the Matter of Ronald A. Safran, CPA 34-53392 03/01/2006

In the Matter of Andrew J. McAdams, CPA 34-53404 03/03/2006

In the Matter of Michael B. Johnson, CPA, et al. 34-53444 03/08/2006

In the Matter of Jon M. Bloodworth, Esq. 34-53489 03/16/2006

In the Matter of Bruce G. Hill, Esq. 34-53517 03/20/2006

In the Matter of Anthony P. Dolanski, CPA 34-53533 03/21/2006

SEC v. Savvides, et al. LR-19622 03/21/2006

SEC v. David T. Leboe, et al. LR-19623 03/27/2006

In the Matter of Netopia, Inc. 34-53566 03/29/2006

SEC v. Fernando J. Espuelas, et al. LR-19627 03/29/2006

SEC v. Thomas A. Skoulis, et al. LR-19630 03/29/2006

In the Matter of Clete D. Madden, CPA, et al. 34-53574 03/30/2006

In the Matter of Aron R. Carr, CPA 34-53573 03/30/2006

In the Matter of Michael D. Karsch 34-53636 04/12/2006

In the Matter of PKF, et al. 33-8675 04/12/2006

SEC v. PKF, et al. LR-19652 04/12/2006

SEC v. Thom A. Faria LR-19656 04/13/2006

In the Matter of Dale G. Rasmussen, Esq. 34-53662 04/17/2006

In the Matter of David T. Leboe, CPA 34-53661 04/17/2006

SEC v. Tyco International Ltd. LR-19657 04/17/2006

In the Matter of Allen Buntin AAER-2418 04/25/2006

In the Matter of Greg Jones 34-53718 04/25/2006

In the Matter of James Jarrett 34-53716 04/25/2006

SEC v. Ranko Cucuz, et al. LR-19668 04/25/2006

In the Matter of Chaim Schwartzbard, CPA 34-53725 04/26/2006

In the Matter of Oil States International, Inc. 34-53732 04/27/2006

SEC v. Ingles Markets Incorporated LR-19673 04/27/2006

SEC v. Lumenis Ltd., et al. LR-19675 04/27/2006

SEC v. Michael E. Peppel, et al. LR-19685 05/02/2006

In the Matter of James R. Ahrns, Jr., CPA 34-53766 05/08/2006

Name of Case Release Number Date Filed
14

In the Matter of Barry F. Duggan, CGA (Canada) 34-53803 05/15/2006

In the Matter of William D. Baker, CPA 34-53830 05/18/2006

SEC v. Federal National Mortgage Association LR-19710 05/23/2006

In the Matter of Tribune Company 34-53882 05/30/2006

In the Matter of David A. Rodriguez, CPA 34-53944 06/01/2006

In the Matter of William T. Owens, CPA 34-53929 06/01/2006

In the Matter of James T. McCurdy 34-53936 06/02/2006

SEC v. BAWAG P.S.K. Bank LR-19716 06/05/2006

In the Matter of Nevanna Sacks, CPA 34-53953 06/07/2006

SEC v. Brady M. Schofield LR-19721 06/07/2006

SEC v. Greg A. Gadel, et al. LR-19720 06/07/2006

SEC v. Joseph P. Micatrotto, Sr. LR-19719 06/07/2006

In the Matter of Wallace G. Haislip 34-54030 06/22/2006

In the Matter of Julian W. Eidson 34-54031 06/22/2006

SEC v. Scientific-Atlanta, Inc. LR-19735 06/22/2006

In the Matter of Accounting Consultants, Inc., et al. 34-54048 06/27/2006

In the Matter of Douglas R. Bauer 34-54049 06/27/2006

SEC v. PowerLinx, Inc. LR-19740 06/27/2006

In the Matter of Raytheon Company, et al. 33-8715 06/28/2006

In the Matter of Vedco, Inc., et al. 33-8716 06/28/2006

In the Matter of Walco International, Inc., et al. 33-8717 06/28/2006

SEC v. Raytheon Company, et al. LR-19747 06/28/2006

SEC v. Virbac Corporation, et al. LR-19746 06/28/2006

In the Matter of Information Architects Corporation 33-8718 06/30/2006

In the Matter of Greentech USA, Inc. 33-8719 06/30/2006

SEC v. Marvin Winick, et al. LR-19751 06/30/2006

In the Matter of Craig M. Waggy 34-54099 07/05/2006

SEC v. John Samson, et al. LR-19754 07/05/2006

In the Matter of Donald Frank Mintmire 34-54115 07/10/2006

In the Matter of Marvin Winick 34-54128 07/11/2006

In the Matter of L. Michael Hart 34-54172 07/19/2006

SEC v. Endocare, Inc., et al. LR-19772 07/19/2006

SEC v. Gregory L. Reyes, et al. LR-19768 07/20/2006

In the Matter of Weston L. Smith, CPA 34-54197 07/24/2006

SEC v. Blast Energy Services, Inc., et al. LR-19786 07/24/2006

In the Matter of James S. Adams, CPA 34-54208 07/25/2006

In the Matter of Rollin M. Dick 34-54207 07/25/2006

SEC v. Mark P. Abide LR-19776 07/27/2006

In the Matter of Eric A. McAfee 34-54234 07/28/2006

SEC v. James R. Powell, et al. LR-19781 07/31/2006

SEC v. Jacob (“Kobi”) Alexander, et al. LR-19796 08/09/2006

SEC v. Paul W. Mikus, et al. LR-19647 08/09/2006

Name of Case Release Number Date Filed
15

In the Matter of Joseph A. Rougraff, CPA 34-54303 08/11/2006

SEC v. David M. Pillor LR-19803 08/15/2006

SEC v. Dawn M. Schlegel, et al. LR-19806 08/17/2006

In the Matter of Mark J. Corjay, CPA 34-54345 08/22/2006

In the Matter of Dennis R. Staal 34-54355 08/23/2006

SEC v. Steven J. Ott, et al. LR-19821 09/06/2006

SEC v. Billy David Deaton LR-19834 09/14/2006

SEC v. Diane Kayser LR-19835 09/14/2006

SEC v. Jim Bob Brown LR-19832 09/14/2006

SEC v. Doral Financial Corporation LR-19837 09/19/2006

SEC v. Walid H. Maghribi LR-19840 09/20/2006

In the Matter of Lantronix, Inc. 33-8745 09/27/2006

SEC v. James N. Stanard, et al. LR-19847 09/27/2006

In the Matter of Diane Kayser (CPA) 34-54534 09/28/2006

In the Matter of William Scott Deloach 34-54532 09/28/2006

SEC v. Steven V. Cotton LR-19850 09/28/2006

SEC v. William S. Deloach, et al. LR-19853 09/29/2006

Market Manipulation

SEC v. Scott R. Sacane, et al. LR-19424 10/12/2005

SEC v. PacketPort.com, Inc., et al. LR-19465 11/16/2005

SEC v. Integrated Services Group Inc., et al. LR-19476 11/29/2005

SEC v. Peter S. Jessop, et al. LR-19481 12/01/2005

SEC v. Edward A. Heil, et al. LR-19494 12/15/2005

SEC v. Anthony F. Giordano LR-19525 01/09/2006

In the Matter of Paul D. Lemmon, et al. 34-53159 01/20/2006

SEC v. John R. Shrewder, et al. LR-19555 02/06/2006

SEC v. IBIZ Technology Corp., et al. LR-19571 02/17/2006

In the Matter James E. Franklin 34-53423 03/06/2006

SEC v. Andreas Badian, et al. LR-19639 04/04/2006

SEC v. Faisal Zafar, et al. LR-19462 04/06/2006

SEC v. Carl Rausch LR-19651 04/11/2006

SEC v. Ramy El-Batrawi, et al. LR-19655 04/13/2006

SEC v. Timothy M. Roberts LR-19701 05/16/2006

In the Matter of George J. Cannan, Jr. 33-8712 06/15/2006

In the Matter of Irving J. Stitsky 34-54093 07/03/2006

In the Matter of Jordan I. Shamah 34-54092 07/03/2006

SEC v. HydroFlo, Inc., et al. LR-19755 07/05/2006

SEC v. Steven Misner LR-19765 07/19/2006

SEC v. Eric A. McAfee LR-19786 07/24/2006

SEC v. Roderic Lee Boling III, et al. LR-19779 07/27/2006

SEC v. Nicholas A. Czuczko LR-19787 08/01/2006

SEC v. David Sarna, et al. LR-19798 08/10/2006

Name of Case Release Number Date Filed
16

SEC v. Jeffrey Steven Stone, et al. LR-19805 08/17/2006

SEC v. Indigenous Global Development Corporation, et al. LR-19829 09/13/2006

SEC v. Joseph Y. Zumwalt LR-19842 09/18/2006

Miscellaneous

In the Matter of Neil D. Silver, et al. 34-52793 11/18/2005

In the Matter of Peter Goodfellow, et al. 34-52865 12/01/2005

SEC v. Compania Internacional Financiera S.A., et al. LR-19501 12/19/2005

In the Matter Paul E. Johnson 34-54304 08/11/2006

SEC v. Graycort Financial, LLC LR-19851 09/28/2006

Municipal Offering

In the Matter of Kenneth R. Martin 34-54402 09/05/2005

In the Matter of CIBC World Markets Corporation 34-52942 12/12/2005

In the Matter of Paul D. Rogers 34-52941 12/12/2005

In the Matter of Peter J. Crowley 34-52943 12/12/2005

In the Matter of Robert J. Dentice 34-52944 12/12/2005

In the Matter of Michael S. deVegter 33-8645 12/22/2005

In the Matter of Anthony C. Snell, et al. 34-54112 07/07/2006

In the Matter of Richard P. Poirier 34-54492 09/25/2006

Securities Offering

SEC v. Gregory Applegate LR-19425 10/07/2005

In the Matter of Russ R. Luciano 34-52616 10/17/2005

SEC v. James Lamar McMichael, et al. LR-19434 10/17/2005

SEC v. Scott Gershon, et al. LR-19439 10/19/2005

SEC v. Donald Matthew Greth, et al. LR-19441 10/21/2005

SEC v. High Park Investment Group Inc., et al. LR-19462 11/09/2005

SEC v. WMDS, Inc., et al LR-19464 11/15/2005

SEC v. Allixon International Corp, et al. LR-19471 11/17/2005

In the Matter of Steven Mastrosimone 34-52829 11/23/2005

In the Matter of Neil Formisano 34-52828 11/23/2005

SEC v. Travis E. Correll, et al. LR-19492 12/07/2005

SEC v. Jeffrey B. Schmidt, et al. LR-19493 12/14/2005

In the Matter of SEC v. HMC International, LLC, et al. LR-19508 12/21/2005

SEC v. Lance Poulsen, et al. LR-19509 12/21/2005

SEC v. Roanoke Technology Corp., et al. LR-19511 12/21/2005

SEC v. Allied Capital Management, Inc.,. et al LR-19513 12/22/2005

In the Matter of Douglas Rasberry, et al. 34-53158 01/20/2006

SEC v. Fortress Financial Group, Inc. LR-19536 01/20/2006

In the Matter of Jeffrey G. Nunez 34-53177 01/25/2006

In the Matter of Michael V. Lipkin, et al. 34-53225 02/03/2006

SEC v. Edward S. Digges, Jr., et al. LR-19554 02/03/2006

SEC v. MSTG Solutions, Inc., et al. LR-19561 02/09/2006

SEC v. Kirkland LR-19570 02/16/2006

Name of Case Release Number Date Filed
17

SEC v. Lambert Vander Tuig, et al. LR-19569 02/17/2006

SEC v. Charis Johnson, et al. LR-19592 02/21/2006

SEC v. Sharon E. Vaughn, et al. LR-19589 03/03/2006

SEC v. Reinhard, et al. LR-19591 03/06/2006

SEC v. Cobalt Multifamily Investors I, LLC., et al. LR-19626 03/29/2006

SEC v. Unlimited Cash, Inc., et al. LR-19640 04/04/2006

SEC v. John P. Utsick, et al. LR-19659 04/17/2006

In the Matter of Bradley T. Smith 34-53682 04/19/2006

SEC v. James N. Pratt, et al. LR-19689 05/03/2006

SEC v. Geoffrey A. Gish, et al. LR-19705 05/17/2006

In the Matter of Steven K. Gilley 34-53877 05/26/2006

SEC v. Universo Foneclub Corporation, et al. LR-19715 05/30/2006

SEC v. Jay Rice LR-19714 05/31/2006

SEC v. Jay Slesinger, et al. LR-19714 05/31/2006

SEC v. Sunray Oil Company, Inc. LR-19737 06/21/2006

SEC v. Jeffrey A. Weston, et al. LR-19750 06/26/2006

SEC v. Airtrac, Inc., et al. LR-19741A 06/27/2006

SEC v. Efoora, Inc. Partners Holdings, LLC, et al. LR-19752 06/29/2006

SEC v. Deep Rock Oil Company, et al. LR-19757 07/07/2006

SEC v. Pittsford Capital Income Partners, LLC, et al. LR-19761 07/14/2006

SEC v. Renaissance Asset Fund, Inc., et al. LR-19764 07/17/2006

In the Matter of Darin W. Roberts 34-54209 07/25/2006

In the Matter of Leslie Mersky 34-54254 07/31/2006

SEC v. Archie Paul Reynolds LR-19793 08/02/2006

SEC v. American-Amicable Life Insurance Company of Texas LR-19791 08/03/2006

SEC v. Jon W. James, et al. LR-19801 08/10/2006

SEC v. One Wall Street, Inc., et al. LR-19809 08/21/2006

In the Matter of Connie S. Farris 34-54377 08/28/2006

SEC v. PetroSite Assets, Inc. et al. LR-19820 09/05/2006

In the Matter of Jonathan Curtis Papa 34-54441 09/14/2006

SEC v. Seaforth Merdian, Ltd., et al. LR-19838 09/14/2006

In the Matter of Dennis B. Watts 34-54483 09/22/2006

In the Matter of James Nathan Grimes 34-54484 09/22/2006

SEC v. US Global Nanospace, Inc., et al. LR-19846 09/26/2006

In the Matter of Vestin Capital, Inc., et al. 33-8744 09/27/2006

SEC v. The Children’s Internet, Inc., et al. LR-19849 09/27/2006

SEC v. U.S. Gas & Electric, Inc., et al. LR-19852 09/27/2006

SEC v. William M. Osterhout, et al. LR-19848 09/27/2006

Self Regulatory Organization

In the Matter of Philadelphia Stock Exchange, Inc. 34-53919 06/01/2006

Transfer Agent

SEC v. Karnig H. Durgarian, Jr., et al. LR-19517 12/30/2005

Name of Case Release Number Date Filed
18

In the Matter of Michele Knowlton 33-8652 01/05/2006

In the Matter of Michael Yellin IA-2501 03/23/2006

In the Matter of Computershare Trust Company of Canada 34-53668 04/18/2006

In the Matter of The Bank of New York 34-53709 04/24/2006

SEC v. The Bank of New York LR-19664 04/24/2006

Name of Case Release Number Date Filed
19

Table 4

INVESTIGATIONS OF POSSIBLE VIOLATIONS OF THE ACTS

 ADMINISTERED BY THE COMMISSION

Pending as of October 1, 2005 ................................................................................... 4,097 

Opened in Fiscal Year 2006............................................................................... 914

Total.............................................................................................................................. 5,011

Closed in Fiscal Year 2006 ................................................................................ 868

Pending as of September 30, 2006 ............................................................................. 4,143

Formal Orders of Investigation

Issued in Fiscal Year 2006 ................................................................................. 255

Right to Financial Privacy

Section 21(h) of the Securities Exchange Act of 1934 [15 U.S.C. 78u(h)(6)] 

requires that the Commission “compile an annual tabulation of the occasions on 

which the Commission used each separate subparagraph or clause of [Section 

21(h)(2)] or the provisions of the Right to Financial Privacy Act of 1978 [12 

U.S.C. 3401-22 (the RFPA)] to obtain access to financial records of a customer 

and include it in its annual report to the Congress.” During the fiscal year, the 

Commission issued 6 subpoenas under Section 21(h); each subpoena was 

issued pursuant to Sections 21(h)(2)(C)(i) and (C)(ii). Set forth below are the 

number of occasions on which the Commission obtained customer records 

pursuant to the provisions of the RFPA: 

Section 1104 (Customer Authorizations) 23

Section 1105 (Administrative Subpoenas) 196

Section 1107 (Judicial Subpoenas) 27

Section 1109 (Delayed Customer Notice) 0

*****

*

*This number includes five investigations that were closed in fiscal 2005 and reopened in fiscal 2006.
20

Table 5

SEC Total Investor Contacts by Fiscal Year
21

Complaint Type

FY 

2006 

Totals

FY 

2005 

Totals Change

Rank in 

2005

1 Advance Fee Fraud* 2,099 2,219 Down 5.41% 1

2 Spam: Unwanted Emails or Faxes 1,950 1,146 Up 70.16% 2

3 Manipulation of Securities, 

Prices, or Markets 953 741 Up 28.61% 5

4 Transfer of Account 806 844 Down 4.5% 3

5 Account Records: Errors 

or Omissions 773 645 Up 19.84% 9

6 Account Closing: Problems 

with Redemption, 

Liquidation, or Closing 719 841 Down 14.51% 4

7 Delivery of Funds or Proceeds 666 629 Up 5.88% 10

8 Short Selling 631 378 Up 66.93% n/a

9 Account access: Difficulty 

in accessing account 596 336 Up 77.38% n/a

10 Document Delivery Problem: 

Securities certificates 596 340 Up 75.29% n/a

As in years past, we received more complaints about broker-dealers than any other type of entity 

(including issuers, mutual fund companies, investment advisers, and transfer agents):

Table 6

TEN MOST COMMON COMPLAINTS

Type of Entity

FY 2006 

Totals

Percentage 

of Total

1 Broker-Dealer 6,219 30%

2 Issuers (Public Companies)s 3,769 18%

3 Transfer agents, Paying 

agents, or Registrars 837 4%

4 Mutual funds (and Other 

Investment Companies) 618 3%

5 Newsletters and Investment 

Publications 711 3%
22

Table 7

UNCONSOLIDATED FINANCIAL INFORMATION FOR BROKER-DEALERS 

2001 - 2005 1/ 

($ in Millions) 

 

2001 2002 2003 2004 2005

Revenues

Securities Commissions $ 44,763.8 $ 45,001.1 $ 45,539.2 $ 47,569.0 $ 46,803.2

Gains (Losses) in Trading and

Investment Accounts 38,950.3 24,240.9 38,808.1 $ 30,669.9 30,681.0

Profits (Losses) from Underwriting

and Selling Groups 16,941.1 14,698.2 17,163.1 19,099.0 19,877.7

Margin Interest 13,911.5 6,439.9 5,261.0 6,983.7 13,269.8

Revenues from Sale of Investment

Company Shares 16,396.4 15,654.9 16,200.2 18,549.9 20,698.8

All Other Revenues 149,132.8 115,775.9 95,984.5 120,058.2 201,170.5

Total Revenues $ 280,095.8 $ 221,811.0 $ 218,956.0 $ 242,929.6 $ 332,501.1

Expenses 

Registered Representatives’

Compensation (Part II Only) 2/ $ 29,950.8 $ 27,388.6 $ 28,578.2 $ 29,973.4 31,712.5

Other Employee Compensation

and Benefits 48,311.6 43,508.7 44,800.5 50,018.6 53,771.0

Compensation to Partners and

Voting Stockholder Officers 5,247.4 3,973.9 4,058.2 3,488.2 3,329.9

Commissions and Clearance Paid

to Other Brokers 14,043.4 15,003.9 16,293.2 17,374.6 18,645.3

Interest Expenses 98,947.2 56,401.6 44,445.9 59,726.0 140,239.9

Regulatory Fees and Expenses 1,550.9 1,383.0 1,515.0 1,670.2 1,787.7

All Other Expenses 2/ 62,647.7 58,889.2 53,611.5 57,489.7 61,830.8

Total Expenses $ 260,698.9 $ 206,549.0 $ 193,300.6 $ 219,740.7 311,317.0

Income and Profitability 

Pre-tax Income $ 19,396.9 $ 15,262.0 $ 25,655.4 $ 23,188.9 $ 21,184.1

Pre-tax Profit Margin 6.9% 6.9% 11.7% 9.5% 6.4%

Pre-tax Return on Equity 13.8% 10.7% 17.6% 15.0% 13.1%

Assets, Liabilities and Capital 

Total Assets $3,371,298.1 $3,261,465.3 $3,980,376.8 $4,830,925.7 $5,215,073.0

Liabilities

(a) Unsubordinated Liabilities 3,158,257.2 3,050,039.2 3,754,978.7 4,584,567.8 4,952,054.3

(b) Subordinated Liabilities 68,693.6 69,434.0 75,929.5 86,665.6 98,912.6

(c) Total Liabilities $3,226,950.8 $3,119,473.0 $3,830,908.2 $4,671,233.4 $5,050,966.9

Ownership Equity $ 144,347.2 $ 141,992.5 $ 149,468.6 $ 159,692.3 $ 164,106.1 

Number of Firms 7,002 6,768 6,565 6,284 6,016

Figures may not add due to rounding. 

1/ Calendar, rather than fiscal, year data is reported in this table.

2/ Registered representatives’ compensation for firms that neither carry nor clear is included in “other expenses” as this expense

 item is not reported separately on Part IIA of the Focus Report. 

Source: Focus Report
23

Table 8

UNCONSOLIDATED ANNUAL REVENUES AND EXPENSES FOR BROKER-DEALERS 

DOING A PUBLIC BUSINESS 

2001 - 2005 1/ 

($ in Millions) 

 

 2001 2002 2003 2004 2005

Revenues

Securities Commissions $ 43,798.5 $ 44,212.2 $ 44,868.3 $ 46,811.5 $ 46,246.4

Gains (Losses) in Trading and

Investment Accounts 33,566.5 20,090.4 33,747.9 26,045.4 25,931.9

Profits (Losses) from Underwriting

and Selling Groups 16,941.2 14,697.5 17,163.1 19,099.0 19,879.2

Margin Interest 13,749.1 6,383.1 5,252.9 6,924.4 13,246.0

Revenues from Sale of Investment

Company Shares 16,396.4 15,654.9 16,200.1 18,549.9 20,698.9

All Other Revenues 144,758.2 111,994.6 95,559.2 117,602.0 195,297.6

Total Revenues $269,210.0 $213,032.7 $212,791.5 $235,032.3 $321,300.0

 

Expenses 

Registered Representatives’

Compensation (Part II only) 2/ $ 29,948.6 $ 27,380.5 $ 28,567.6 $ 29,959.0 $31,711.6

Other Employee Compensation

and Benefits 46,967.1 42,398.2 43,885.8 49,178.7 52,908.1

Compensation to Partners and

Voting Stockholder Officers 4,976.9 3,759.8 3,855.3 3,319.3 3,165.1

Commissions and Clearance Paid

 to Other Brokers 13,422.4 14,414.5 15,803.2 16,909.9 18,258.9

Interest Expenses 96,120.5 55,180.0 43,315.8 57,913.6 136,122.4

Regulatory Fees and Expenses 1,343.7 1,208.5 1,280.5 1,464.3 1,557.0

All Other Expenses 2/ 60,747.1 56,984.7 51,722.7 55,466.3 59,963.3

Total Expenses $253,526.4 $201,326.3 $188,430.8 $214,211.0 $303,686.4

Income and Profitability

Pre-tax Income $ 15,683.6 $ 11,706.4 $ 24,360.7 $ 20,821.3 $17,613.6

Pre-tax Profit Margin 5.8% 5.5% 11.4% 8.9% 5.5%

Pre-tax Return on Equity 12.3% 9.2% 18.8% 14.9% 12.0%

Number of Firms 5,493 5,394 5,301 5,231 5,143

Figures may not add due to rounding.

1/ Calendar, rather than fiscal, year data is reported in this table.

2/ Registered representatives’ compensation for firms that neither carry nor clear is included in “other expenses” 

 as this expense item is not reported separately on Part IIA of the Focus Report. 

 

Source: Focus Report
24

Table 9

UNCONSOLIDATED BALANCE SHEET FOR BROKER-DEALERS 

DOING A PUBLIC BUSINESS 

YEAR-END, 2001 - 2005 1/ 

($ in Millions) 

	 	

2001 2002 2003 2004 2005

Assets

Cash $ 50,722.9 $ 47,710.9 $ 50,219.2 $ 64,996.5 $ 59,502.8

Receivables from Other

Broker-dealers 1,115,382.5 1,032,041.5 1,414,127.2 1,792,465.9 1,941,595.2 

Receivables from Customers 177,944.3 132,739.7 163,107.2 214,374.0 202,277.2

Receivables from Non-customers 15,392.7 14,237.2 18,124.0 44,085.5 28,989.0

Long Positions in Securities

and Commodities 775,941.9 789,608.2 1,004,562.4 1,071,660.1 1,184,107.5

Securities and Investments

not Readily Marketable 10,486.6 9,729.6 11,516.8 13,489.6 14,696.7

Securities Purchased Under Agreements

to Resell (Part II only) 2/ 855,539.3 951,803.1 966,629.5 1,189,010.4 1,288,647.4

Exchange Membership 664.6 684.5 675.2 666.5 769.3

Other Assets 2/ 212,798.3 135,646.5 154,872.6 213,735.9 249,177.4

Total Assets $3,214,873.2 $3,114,201.2 $3,783,834.1 $4,604,484.3 $4,969,762.5

Liabilities and Equity Capital 

Bank Loans Payable $ 75,897.2 $ 51,369.7 $ 74,199.5 $ 90,173.4 $ 97,655.4

Payables to Other Broker-dealers 562,210.8 466,809.3 742,116.9 1,033,641.6 1,018,199.3

Payables to Non-customers 56,710.4 60,817.5 66,146.9 63,782.6 67,301.4

Payables to Customers 391,358.5 349,781.6 407,244.9 510,339.9 508,372.3

Short Positions in Securities

and Commodities 342,189.9 345,113.0 439,384.4 504,689.8 487,003.6

Securities Sold Under Repurchase

Agreements (Part II only) 2/ 1,282,754.8 1,405,679.3 1,564,762.4 1,801,674.5 2,124,355.6

Other Non-subordinated Liabilities 2/ 306,860.4 242,125.0 280,547.5 370,991.2 421,882.5

Subordinated Liabilities 67,304.5 67,966.9 74,285.9 84,628.1 96,871.1

Total Liabilities $3,085,286.3 $2,989,662.2 $3,648,688.4 $4,459,921.2 $4,821,641.1

Equity Capital $ 129,586.9 $ 124,539.0 $ 135,145.7 $ 144,563.1 $ 148,121.4

Number of firms 5,493 5,394 5,301 5,231 5,143

Figures may not add due to rounding.

 

1/ Calendar, rather than fiscal, year data is reported in this table.

2/ Resale agreements and repurchase agreements for firms that neither carry nor clear are included in “other assets” and 

“other non-subordinated liabilities,” respectively, as these items are not reported separately on Part IIA of the Focus

 Report.

Source: Focus Report
25

2004 2005

 Percent Percent Percent

 of Total of Total Change

 Dollars Revenues Dollars Revenues 2004-2005

Revenues

Securities Commissions $ 31,752.0 17.0% $ 32,136.5 11.9% 1.2% 

Gains (Losses) in Trading and

Investment Accounts 22,039.1 11.8 22,757.2 8.4 3.3 

Profits (losses) from under-

 writing and selling groups 17,592.8 9.4 18,431.6 6.8 4.8 

Margin interest 6,924.4 3.7 13,246.0 4.9 91.3 

Revenues from sale of invest-

 ment company shares 9,360.2 5.0 10,502.3 3.9 12.2

Miscellaneous fees 15,952.5 8.5 17,889.9 6.6 12.1 

Revenues from research 211.2 0.1 137.4 0.1 -34.9 

Commodities revenues 1,545.4 0.8 1,791.5 0.7 15.9 

All other revenues 81,606.7 43.6 153,702.0 56.8 88.3

Total revenues $186,984.4 100.0% $270,594.4 100.0% 44.7% 

Expenses

Registered representatives’

compensation $ 29,959.0 16.0% $ 31,711.6 11.7% 5.8% 

Other employee compensation

 and benefits 36,272.1 19.4 39,297.1 14.5 8.3 

Compensation to partners and

voting stockholder officers 1,063.6 0.6 996.3 0.4 -6.3 

Commissions and clearance paid

 to other brokers 6,580.1 3.5 7,261.9 2.7 10.4 

Communications 4,624.3 2.5 4,993.7 1.8 8.0 

Occupancy and equipment costs 6,342.2 3.4 6,327.1 2.3 -0.2 

Data Processing Costs 3,227.0 1.7 3,492.8 1.3 8.2 

Interest expenses 57,499.9 30.8 135,534.1 50.1 135.7 

Regulatory fees and expenses 1,266.0 0.7 1,304.6 0.5 6.4 

Losses in error accounts and

bad debts 330.9 0.2 369.4 0.1 11.6 

All other expenses 22,742.4 12.2 25,693.4 9.5 13.0 

Total expenses $169,867.6 90.8% $256,982.0 95.0% 51.3%

Income and Profitability

Pre-tax income $ 17,116.8 9.2% $13,612.4 5.0% -20.5%

Pre-tax profit margin 9.2% 5.0% 

Pre-tax return on equity 15.1% 11.3% 

Number of Firms 576 570 

Figures may not add due to rounding. 

1/ Calendar, rather than fiscal, year data is reported in this table.

Note: Includes information for firms doing a public business that carry customer accounts or clear securities transactions.

Source: Focus Report

Table 10

UNCONSOLIDATED REVENUES AND EXPENSES FOR 

CARRYING/CLEARING BROKER-DEALERS 1/ 

($ in Millions)
26

 2004 2005 

 Percent Percent Percent

 of Total of Total Change

 Dollars Assets Dollars Assets 2004-2005

Assets 

Cash $ 60,640.1 1.3% $ 55,318.4 1.1% -8.8%

Receivables from other broker-dealers 1,773,899.5 39.4 1,928,910.3 39.7% 8.7

(a) Securities failed to deliver 87,703.7 1.9 26,380.1 0.5 -69.9

(b) Securities borrowed 1,614,340.0 35.8 1,825,816.7 37.6 13.1 

(c) Other 71,855.8 1.6 76,713.6 1.6 6.8 

Receivables from customers 214,374.0 4.8 202,277.2 4.2 -5.6 

Receivables from non-customers 43,141.2 1.0 27,820.5 0.6 -35.5 

Long positions in securities and commodities 1,030,816.7 22.9 1,131,083.2 23.3 9.7 

(a) Bankers acceptances, certificates

 of deposit and commercial paper 45,959.8 1.0 59,787.9 1.2 30.1 

(b) U.S. and Canadian government obligations 538,843.5 12.0 503,648.1 10.4 - 6.5

(c) State and municipal government obligations 31,534.7 0.7 42,727.3 0.9 35.5 

(d) Corporate obligations 219,906.9 4.9 300,800.0 6.2 36.8 

(e) Stocks and warrants 125,122.3 2.8 150,201.3 3.1 20.0 

(f) Options 14,903.6 0.3 22,414.1 0.5 50.4 

(g) Arbitrage 35,159.7 0.8 27,666.7 0.6 -21.3 

(h) Other securities 19,385.8 0.4 24,040.4 0.5 24.0 

(i) Spot commodities 0.4 0.0 0.8 0.0 100.0 

Securities and investments not readily marketable 12,831.2 0.3 13,898.0 0.3 8.3

Securities purchased under agreements

to resell 1,189,010.4 26.4 1,288,647.4 26.5 8.4

Exchange membership 624.3 0.0 677.5 0.0 8.5 

Other assets 178,797.2 4.0 210,582.0 4.3 17.8 

Total assets $4,504,134.6 100.0% $4,859,214.6 100.0% 7.9% 

Liabilities and Equity Capital

Bank loans payable $ 86,991.5 1.9% $ 85,420.1 1.8% -1.8% 

Payables to other broker-dealers 1,014,395.6 22.5 1,002,262.2 20.6 -1.2 

(a) Securities failed to receive 104,912.0 2.3 31,738.2 0.7 -69.7 

(b) Securities loaned 850,694.6 18.9 917,112.6 18.9 7.8 

(c) Other 58,789.0 1.3 53,411.4 1.1 -9.1 

Payables to non-customers 63,043.9 1.4 65,682.9 1.4 4.2 

Payables to customers 510,339.9 11.3 508,372.3 10.5 -0.4 

Short positions in securities

and commodities 487,203.7 10.8 470,114.8 9.7 -3.5 

Securities sold under repurchase

agreements 1,801,674.5 40.0 2,124,355.6 43.7 17.9 

Other non-subordinated liabilities 342,482.5 7.6 384,482.8 7.9 12.3 

Subordinated Liabilities 81,711.8 1.8 93,973.2 1.9 15.0 

Total liabilities $4,387,843.4 97.4% $4,734,663.8 97.4% 7.9% 

Equity capital $ 116,291.2 2.6% $ 124,550.8 2.6% 7.1% 

Number of firms 576 570 

Figures may not add due to rounding. 

1/ Calendar, rather than fiscal, year data is reported in this table.

Note: Includes information for firms doing a public business that carry customer accounts or clear securities transactions.

Table 11

UNCONSOLIDATED BALANCE SHEET FOR CARRYING/CLEARING 

BROKER-DEALERS 1/ 

($ in Millions)
27

Table 12

TRANSACTION ACTIVITY IN EQUITIES, OPTIONS, AND SECURITY FUTURES 

MARKET VALUE OF SALES 

(Millions)

Year Total

Equity

Trading

Option

Trading

Option Exercises 

and Futures

Deliveries

Security 

Futures

Trading1/

1990 $2,229,226 $2,153,676 $27,219 $48,331 

1991 $2,666,702 $2,590,422 $27,104 $49,177 

1992 $3,148,024 $3,077,507 $26,586 $43,931 

1993 $4,261,937 $4,179,743 $33,779 $48,415 

1994 $4,591,283 $4,501,577 $35,883 $53,823 

1995 $6,321,475 $6,207,746 $50,803 $62,926 

1996 $8,266,339 $8,123,748 $67,862 $74,729 

1997 $11,692,830 $11,487,872 $104,535 $100,422 

1998 $15,164,183 $14,903,153 $140,261 $120,769 

1999 $23,218,783 $22,813,331 $260,294 $145,159 

2000 $36,275,278 $35,557,087 $485,106 $233,085 

2001 $26,138,050 $25,636,203 $277,549 $224,298 

2002 $23,028,157 $22,657,944 $161,278 $208,935 307,169

2003 $22,736,795 $22,290,859 $164,085 $281,851 2,501,247

2004 $27,808,141 $27,090,516 $222,958 $494,666 2,175,093

2005 $34,561,572 $33,219,676 $350,365 $991,531 5,493,850

2006 $43,938,653 $41,795,852 $531,302 $1,611,498 7,793,480

Calendar Year 2006

AMEX $721,282 $542,294 $45,089 $133,889 0

BSE $198,201 $103,314 $23,732 $71,155 0

CBOE $531,195 $18,197 $130,451 $382,547 0

CHX $448,735 $448,735 $0 $0 0

CMX $0 $0 $0 $0 4,643

ISE $524,614 $24 $131,796 $392,794 0

NASD $15,436,174 $15,436,174 $0 $0 0

NASDAQ $2,930,330 $2,390,330 $0 $0 0

NSX $467,796 $467,796 $0 $0 0

NYSE $16,310,889 $16,310,889 $0 $0 0

OneChicago $24,508 $0 $0 $24,508 7,788,837

PCX $6,511,816 $6,047,277 $112,464 $352,075 0

PHLX $373,113 $30,822 $87,772 $254,519 0

	 	 	 	 	 	

Data are the value of all sales of equities and options listed on an exchange or subject to last-sale reporting. 

Also reported are the value of such options that were exercised, the value of single-stock futures that were 

delivered, and the number of round turn contracts in single-stock futures traded on an exchange. Specifically 

excluded are options and futures on indexes. 

 

1/This is the number of round turn contracts, or one purchase and one sale of a contract for future delivery. 

Security futures began trading in November 2002. 

 

Sources: Form R31 for October 2003 and later months. For September 2003 and earlier months, submissions to the SEC by national securities exchanges, the NASD, and the OCC, and various issues of the Nasdaq 

Factbook. 	 	 	 	
28

Table 13

Securities Listed on Exchanges 1/

 December 31, 2005

EXCHANGE COMMON PREFERRED BONDS TOTAL SECURITIES

 Market Value Market Value Value 2/ Value

Registered: Number (in Millions) Number (in Millions) Number (in Millions) Number (in Millions)

American 744 176,024.6 47 1,926.9 16 0.0 807 177,951.5

Boston 23 676.7 0 0.0 0 0.0 23 676.7

Cincinnati 0 0.0 0 0.0 0 0.0 0 0.0

Chicago 3 515.0 0 0.0 0 0.0 3 515.0

New York 2,175 13,421,470.6 391 65,546.8 814 0.0 3,380 13,487,017.4

Pacific 9 3,492.0 1 18.8 0 0.0 10 3,510.8

Philadelphia 0 0.0 0 0.0 0 0.0 0 0.0

Total 2,954 13,602,178.9 439 67,492.5 830 0.0 4,223 13,669,671.4

 

Includes Foreign Stocks:

New York 462 1,094,787.3 18 6,030.4 157 0.0 637 1,100,817.7

American 21 51,390.7 0 0.0 0 0.0 21 51,390.7

Boston 2 95.6 0 0.0 0 0.0 2 95.6

Chicago 0 0.0 0 0.0 0 0.0 0 0.0

Pacific 0 0.0 0 0.0 0 0.0 0 0.0

Philadelphia 0 0.0 0 0.0 0 0.0 0 0.0

Total 485 1,146,273.6 18 6,030.4 157 0.0 660 1,152,304.0

Figures may not sum due to rounding.

1/ Excludes securities that were suspended from trading at the end of the year and securities that, because of inactivity, had no available quotes.

2/ Principal value for all exchanges, except Pacific (PSE). PSE could provide only market value. The American (AMEX) and New York (NYSE) exchanges no longer can provide market 

values for bonds.

Source: SEC Form 1392
29

Table 14

Value of Stocks Listed on Exchanges

($ in Billions)

New York American Exclusively

As of Stock Stock On Other 

Dec 31 Exchange Exchange Exchanges Total

1938 $ 47.5 $ 10.8 $ ..... $ 58.3

1940 46.5 10.1 ..... $ 56.6

1945 73.8 14.4 ..... 88.2 

1950 93.8 13.9 3.3 111.0 

1955 207.7 27.1 4.0 238.8 

1960 307.0 24.2 4.1 335.3 

1965 537.5 30.9 4.7 573.1 

1970 636.4 39.5 4.8 680.7 

1975 685.1 29.3 4.3 718.7 

1980 1,242.8 103.5 2.9 1,349.2 

1985 1,882.7 63.2 5.9 1,951.8 

1990 2,692.1 69.9 3.9 2,765.9 

1991 3,547.5 90.3 4.3 3,642.1

1992 3,877.9 86.4 5.9 3,970.2 

1993 4,314.9 98.1 7.2 4,420.2

1994 4,240.8 86.5 4.7 4,332.0

1995 5,755.5 113.3 6.8 5,875.6 

1996 6,947.7 106.2 5.7 7,059.6

1997 9,413.1 131.3 3.6 9,548.0

1998 10,384.8 149.7 4.7 10,539.2

1999 11,556.2 82.5 6.7 11,645.4

2000 11,633.0 94.4 4.7 11,732.1

2001 11,126.2 82.9 9.4 11,218.6

2002 9,119.7 57.8 5.2 9,182.7

2003 11,470.9 107.6 2.6 11,581.1

2004 12,870.0 191.0 2.1 13,063.1

2005 13,487.0 178.0 4.7 13,669.7

Source: SEC Form 1392