New York: Criminal Infiltration of the Securities Industry

Abstract

Preserving confidence in our securities market is of great importance, because few Americans are not affected by its rise and fall. In recent years, persons with criminal records have attempted by various guises to infiltrate the se curities market, posing major problems for governmental regu latory agencies in the securities field. New York State has attempted by statute to eliminate persons with felony convic tions from engaging in the securities business. Another prob lem in New York was high-pressure "boiler room" operations. A New York statute now requires registration of securities salesmen, in an effort to alleviate that problem. The gangster element has found it increasingly difficult to conduct business in New York under these enactments. There is a tremendous need for national and international co-operation in securities regulation. The North American Securities Administrators, operative in the United States, Canada, and Mexico, aims at promoting co-operative governmental efforts in the field. No similar international group exists. Assistance from the public itself, by way of complaints to regulatory agencies, is essential for timely enforcement of existing statutes. Through co-operation among supervising agencies and assistance from an alert and educated public, the problem of criminal activity in the securities business can be solved.