S.E.C. PUNISHES 5 AT STOCK CONCERN; Top Officers at Shearson Are Barred for 60 Days
Shearson, Hammill & Co: SEC bars 5 top co officers from securities business for 60 days for failure to prevent illegal activities in co's W Coast branches, revealed during SEC '62 probe of securities indus; activities involved centered mainly on manipulations of US Automatic Mdsg Co stock in '60-61; 7 in co's W Coast offices involved in manipulations and certain churning activities barred from indus indefinitely, 1 for 4 mos; penalty against 5 officers termed 'disassociation' rather than suspension, 60-day terms to run concurrently or consecutively as partners choose; co's ability to operate seen unaffected; SEC does not charge officers with illegal activities but holds them responsible for permitting violations to which they should have been alert; co chmn Safanie (1 of 5 affected) holds SEC action 'scarcely fair' because based on actions of 4-5 yrs ago for which co had already been penalized; sees precedent set for ultimate responsibility of sr mgt for actions of subordinates
