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Cox Securities Shut Down in Fraud Settlement

October 24, 2000|BLOOMBERG NEWS

Cox Securities Inc., the top producing floor broker on the Pacific Exchange in 1997, was shut down by the Securities and Exchange Commission on Monday as part of a settlement of regulatory fraud charges.

The SEC alleged that the Los Angeles-based firm, owned by Edward R. Cox, created more than 1,000 false trades in which the firm shifted $1.5 million in trading losses to 53 other broker-dealers and floor specialists.

Those trades involved at least 31 securities from November 1996 to March 1998, the SEC said

Cox, 51, also agreed to be barred permanently as a broker-dealer. Under the settlement, he neither admitted nor denied wrongdoing.

Cox Securities has been suspended from working on the Pacific Exchange since early 1999.

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