Joshua M. Levine (opens in new tab)

At the time, NASD rules prohibited broker-dealers from using the SOES system to trade for their own accounts. Nevertheless, Datek Securities executed millions of proprietary trades using the SOES system. Initially, the firm concealed its proprietary trading by manually allocating the trades among dozens of nominee accounts at the end of each day. After the trades were allocated, the information was used to generate additional firm books and records that falsely recorded the proprietary trades...