Roosevelt & Cross, Inc., Thomas Vigorito, William W. Welsh

SANCTION AMOUNT: $1082015

Defendants: Roosevelt & Cross, Inc.
Thomas Vigorito, William W. Welsh

Respondents, a NY broker-dealer and two of its registered representatives, agreed to settle the SEC’s allegations that they circumvented the priority of orders set by municipal bond issuers. Respondents allegedly did this in two ways: (i) by allocating bonds to “flippers” that they knew or should have known did not qualify for retail priority, who immediately re-sold the bonds; and (ii) by using the flippers as proxies for bond orders for the Respondent broker-dealer’s own inventory.