FINRA

Without admitting or denying the findings, Mancinelli consented to the sanction and to the entry of findings that he failed to appear for on-the-record testimony requested by FINRA after his member firm filed a Statement of Claim with FINRA Dispute Resolution against customers of the firm.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All capacities

Indefinite

6/17/2022

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC RELEASE 34-62153/MAY 21, 2010: ON MAY 3, 2010, AN AMENDED FINAL JUDGMENT WAS ENTERED BY CONSENT AGAINST MANCINELLI, PERMANENTLY ENJOINING HIM FROM FUTURE VIOLATIONS OF SECTION 17(A) OF THE SECURITIES ACT OF 1933, SECTION 10(B) OF THE EXCHANGE ACT AND RULE 10B-5 THEREUNDER, AND AIDING AND ABETTING VIOLATIONS OF SECTIONS 15(C) OF THE EXCHANGE ACT AND RULE 10B-3 THEREUNDER, IN THE CIVIL ACTION ENTITLED SECURITIES AND EXCHANGE COMMISSION V. GENE T. MANCINELLI, CIVIL ACTION NUMBER 06-CV-7885, IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK.

Order

Bar (Permanent)

ALL CAPACITIES

Indefinite

RIGHT TO REAPPLY AFTER THREE YEARS

5/21/2010

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC LITIGATION RELEASE 19857, OCTOBER 2, 2006: THE SECURITIES AND EXCHANGE COMMISSION'S COMPLAINT CHARGES MANCINELLI WITH VIOLATING SECTION 17(A) OF THE SECURITIES ACT OF 1933, AND VIOLATING AND/OR AIDING AND ABETTING VIOLATIONS OF SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5. THE COMMISSION'S COMPLAINT ALSO CHARGES MANCINELLI WITH AIDING AND ABETTING VIOLATIONS OF SECTION 15(C) OF THE EXCHANGE ACT AND RULE 10B-3. IN ITS COMPLAINT, THE COMMISSION ALLEGES THAT MANCINELLI PERMITTED HIS HEDGE FUND CUSTOMERS TO LATE TRADE AND DECEPTIVELY MARKET TIME MUTUAL FUNDS. SPECIFICALLY, FROM APRIL 2001 THROUGH OCTOBER 2001, MANCINELLI ACCEPTED AND EXECUTED MORE THAN 2,000 LATE TRADES IN MUTUAL FUNDS FOR ONE HEDGE FUND CUSTOMER. MANCINELLI PERMITTED THIS CUSTOMER ROUTINELY TO PLACE ORDERS TO PURCHASE, REDEEM OR EXCHANGE MUTUAL FUND SHARES WELL AFTER 4:00 P.M. ET, THE TIME AS OF WHICH FUNDS CALCULATE THEIR NET ASSET VALUE (NAV). MANCINELLI WAS AWARE THAT THE LATE TRADES WOULD RECEIVE THAT DAY'S NAV AS OPPOSED TO THE NEXT TRADING DAY'S NAV. ADDITIONALLY, MANCINELLI UTILIZED DECEPTIVE TACTICS, SUCH AS USING MULTIPLE ACCOUNTS AND MULTIPLE BROKER NUMBERS, TO HIDE THE IDENTITY OF HIS MARKET TIMING CUSTOMERS FROM MUTUAL FUNDS, AND OTHERWISE TO FACILITATE HIS CUSTOMERS' MARKET TIMING STRATEGIES.

Judgment Rendered

Disgorgement

$158,799.00

Monetary Penalty other than Fines

Injunction