Dr. Michael Newman
Department of Accountancy & Taxation
C.T. Bauer College of Business
University of Houston
Houston, TX 7704
Dear Dr. Newman:
Enclosed is my report on A.S. Goldmen & Company. This brokerage firm was indicted on charges that it had orchestrated a securities fraud that had cost thousands of investors $100 million in losses. I believe this firm is a textbook case of how everyone loses when executives and employees operate in a culture of greed and no ethics.
I hope you find that my report informative and meets the requirements you have set forth for this assignment.
Sincerely,
Roy Loggins III
A. S. Goldmen & Company
Prepared for
Dr. Michael Newman
University of Houston
Department of Accountancy & Taxation
C.T. Bauer College of Business
Business Ethics for Accountants
GENB 7304
Summer 2015
By
Roy Loggins III
August 4, 2015
Executive Summary
A.S. Goldmen & Company was indicted July 8, 1999 on charges that the firm orchestrated a securities fraud that cost investors $100 million in losses. Thirty-three of its executives and employees were named in the indictment, including the firm’s president and owner, Anthony Marchiano, his twin brother and head trader, Salvatore Marchiano, and the chief financial officer, Stuart E. Winkler. The brokerage is now defunct with the executives serving time for the fraud.
A.S. Goldmen & Company – The firm
Created in 1988, A.S. Goldmen & Company was a small brokerage firm that dealt primarily in microcap, or penny, stocks. In its heyday, Goldmen had offices in Los Angeles; Manhattan; Naples, Fl.; and Inselin, N.J., with nearly 100 brokers and 50,000 accounts. Goldmen’s target market was retirees looking to invest their savings.
A.S. Goldmen & Company – Seize all fraud opportunities
A.S. Goldmen & Company had been the subject of 11 actions by state securities
