Defendant Name: Ferris, Baker Watts, Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Royal Bank of Canada
SIC Code: 6021
CUSIP: 78008710

Initial Case Details

Legal Case Name In the Matter of Ferris, Baker Watts, Inc.
First Document Date 10-Feb-2009
Initial Filing Format Administrative Action
File Number 3-13364
Allegation Type Broker Dealer

Violations Alleged

Other
• Failure to supervise under Section 15(b) Exchange Act

Resolutions

First Resolution Date 10-Feb-2009
Headline Total Penalty and Disgorgement $800,656

Related Documents:

34-59372 10-Feb-2009 Administrative Proceeding
Corrected Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 15(b) and 21C of the Securities Exchange Act of 1934 and Section 203(e) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On February 10, 2009, the SEC instituted settled cease-and-desist proceedings against Ferris, Baker Watts, Inc. The SEC stated: "These proceedings arise from supervisory failures at Ferris. Specifically, a registered representative associated with Ferris named Stephen Glantz ("Glantz"), one of Glantz's customers, and a registered representative at another brokerage firm, all participated in a scheme to manipulate the market for the stock of Innotrac Corporation ("Innotrac"), a thinly traded NASDAQ National Market security in which Ferris made a market. Glantz also engaged in a pattern of unauthorized and unsuitable trading in the accounts of several of his customers. Glantz's fraud began as early as August 2002 and continued throughout the period from January 2003 through November 2005, when Glantz was employed as a registered representative of Ferris. Ferris failed to design reasonable systems to implement its written supervisory policies and procedures. Ferris' supervisory failures were in addition to supervisory failures of certain members of the firm's senior management."

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