- The Washington Times - Monday, August 15, 2005

DOW JONES/ASSOCIATED PRESS

Four stock brokers were indicted by a federal grand jury and charged by federal regulators with selling access to brokerage firm “squawk boxes,” the internal systems that broadcast information about large customer orders.

The brokers are Ralph D. Casbarro, formerly at the brokerage arm of Citigroup Inc.; David G. Ghysels Jr., an ex-broker at Lehman Brothers Holdings Inc.; Kenneth E. Mahaffy Jr., formerly at Merrill Lynch & Co. and Citigroup; and Timothy J. O’Connell, formerly at Merrill Lynch.

The Securities and Exchange Commission filed civil fraud charges yesterday, saying the brokers sold John Amore, the former chief executive at A.B. Watley Group Inc., access to the “squawk boxes.” The brokers could then learn about large customer orders and then make trades on the expectation that the orders would influence stock prices.


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