Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-02-20

MO-, ana OF 6druCIl o OO., IL
self.
Three Employees Named
In the case of Baruch, the
SEC staff also charged that
three men in its employ had
been enjoined in New York
from engaging in certain con-
duct and practices in buying
and selling stock and that
Baruch "willfully violated SEC
regulations by failing to report
they were in its employ.
The men are Howard Cole
man, Gilbert Golden and Sid
ney Birnbaum, the last named
also known as Sidney Birns
and Sid Birns.
The president of R. Baruch
and Co., Baruch Rabinowitz,
denied the SEC charges in a
statement telephoned to The
Star by Mr.. Coleman.
Charges Harassment
1--WE are absolutely 100 per
cent Clean" the statement de-
clared. I'VE run the finest
brokerage house in the United
States. The Securities and Ex-
change Commission for more
than 10 months has been har-
assing us to death. They have
cost us hundreds of thousands
of dollars. They have spent
hundl eds of thousands of the
taxpayers dollars investigating
us, and after all the testimony
is in, we guarantee a shake
up in the SEC the like of which
has never been seen before"
The SEC staff alleged that
the pig company reported that
more than $4,000 shares of the
stock had been sold at a public
offering and that the offering
had been discontinued due to
lock of public acceptance. OF
this quantity of shares. the SEC
staff charged, 10000 were put
into accounts which wound up
with the three firms. There
after, it was alleged, the mar
ket for the stock went up from
$3.50 a share to $3.50 a share
before dropping to around 81.
More recently. however, the
SEC reported, Baruch & Co.
raised its quotations to between
81 and S..
Fictitious Name Alleged
The Baruch order, which is
the most detailed of the three,
alleged tina a controlling person
in the stock offering opened an
account under a fictitious name
with Baruch to trade in the
stock, the Baruch used the &C
counts of other people to con-
ceal the facts that the trans
actions were for the benefit of
Baruch Rabinowitz; that GER
tain Baruch records were
changed and destroyed to con-
ceal trading in the pig stock,
and that false and misleading"
information was given to a
newspaper reporter to carry a
story which would create a de-
mand for the stock.
The SEC staff also charged
that arrangements were made
for trading in the pig stock for
customers who had given Mr..
Rabinowitz discretionary powers
to buy and sell stock for them.
These shares, the SEC staff
charged, were traded without
disclosing to the customers the
profits which Mr.. Rabinowitz
and his firm would get from
such transactions.
The Baruch and Brod firms
were charged by the SEC staff
with engaging in telephone So
licitation to Great a market
demand and the appearance
of demand for the stock and
to increase it's market price
and otherwise create a false
and misleading appearance of
the price in order to induce
purchases.
Had Assets Of S9.15
The SEC reported that at
the time Agricultural Research
and Development was offered
to the public, it reported its
current assets at $9.15 and its
current liabilities at $16,389.
The offering circular was
quoted as saying a portion of
the proceeds from the offering
must be used to pay off the
liabilities and if substantial
| portion of the stock was not
sold, the principal assets of the
company would be lost
through foreclosure sale and
the company would not be able