SEC Sanctions Online Broker
May 24, 1999
The SEC last week fined Datek Online Brokerage Services Corp. of Iselin, N.J. $50,000 for failing to segregate customer funds and for books and records violations. Datek's former chief financial officer, Moishe Zelcer, was fined $10,000 in the case, which was filed May 18. Datek and Zelcer agreed to the fine and other sanctions without admitting or denying the SEC's allegations. The SEC said that on 12 occasions this spring, Datek used customer funds to meet the firm's obligations.