UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC ADMIN RELEASE 34-71437, JANUARY 29, 2014: THE SECURITIES AND EXCHANGE COMMISSION ("COMMISSION") DEEMED IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE PROCEEDINGS BE INSTITUTED PURSUANT TO SECTION 15(B) OF THE SECURITIES EXCHANGE ACT OF 1934 ("EXCHANGE ACT") AGAINST DOUGLAS COSTABILE ("RESPONDENT" OR "COSTABILE"). THE DIVISION OF ENFORCEMENT ALLEGES THAT: ON AUGUST 24, 2009, BEFORE THE NEW YORK SUPREME COURT IN PEOPLE V. DOUGLAS COSTABILE, CASE NO. 2394-2009, COSTABILE PLEADED GUILTY TO ONE FELONY COUNT OF ATTEMPTED ENTERPRISE CORRUPTION IN VIOLATION OF NEW YORK PENAL LAW § 110-460.20 AND ONE COUNT OF GRAND LARCENY IN THE THIRD DEGREE IN VIOLATION OF NEW YORK PENAL LAW § 155.35. ON JULY 20, 2012, COSTABILE WAS SENTENCED IN THAT PROCEEDING TO CONDITIONAL DISCHARGE AND ORDERED TO PAY $32,223 IN RESTITUTION TO HIS VICTIMS. THE ATTEMPTED ENTERPRISE CORRUPTION COUNT OF THE CRIMINAL INDICTMENT TO WHICH COSTABILE PLEADED GUILTY AROSE OUT OF THE CONDUCT OF A BROKER-DEALER AND ALLEGED, AMONG OTHER THINGS, THAT BETWEEN JANUARY 2001 AND DECEMBER 2005, COSTABILE PARTICIPATED IN A SCHEME AT HIS FORMER BROKER-DEALER TO DEFRAUD INVESTORS BY COORDINATING WITH TRADERS TO SELL AND BUY STOCKS TO AND FROM THEIR CUSTOMERS, AFTER SUCCESSFULLY MANIPULATING THE PRICE OF THE STOCKS, AT PRICES UNFAVORABLE TO THEIR CUSTOMERS, TO GENERATE ILLEGALLY INFLATED PROFITS THAT WERE SHARED BY MEMBERS OF THE CRIMINAL ENTERPRISE. THE SCHEME INVOLVED THE SECURITIES OF NUMEROUS COMPANIES. THE GRAND LARCENY COUNT OF THE CRIMINAL INDICTMENT TO WHICH COSTABILE PLEADED GUILTY ALLEGED THAT BETWEEN APRIL 2003 AND AUGUST 2004, COSTABILE STOLE MORE THAN THREE THOUSAND DOLLARS FROM AN INDIVIDUAL.

Order

Bar (Permanent)

ALL CAPACITIES

IT IS ORDERED PURSUANT TO SECTION 15(B)(6) OF THE EXCHANGE ACT THAT COSTABILE BE, AND HEREBY IS BARRED FROM ASSOCIATION WITH ANY BROKER, DEALER, INVESTMENT ADVISER, MUNICIPAL SECURITIES DEALER, MUNICIPAL ADVISOR, TRANSFER AGENT, OR NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION; AND BARRED FROM PARTICIPATING IN ANY OFFERING OF A PENNY STOCK.

6/19/2014

FINRA

RESPONDENT DOUGLAS COSTABILE FAILED TO RESPOND TO FINRA REQUEST FOR INFORMATION.

LETTER

Bar (Permanent)

All Capacities

Indefinite

8/30/2010

PURSUANT TO FINRA RULE 9552(H) AND IN ACCORDANCE WITH THE INTENT TO SUSPEND AND NOTICE OF SUSPENSION LETTERS, DATED FEBRUARY 25, 2010 AND MARCH 22, 2010 RESPECTIVELY, ON AUGUST 30, 2010, COSTABILE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY. RESPONDENT FAILED TO REQUEST TERMINATION OF HIS SUSPENSION WITHIN SIX MONTHS OF THE DATE OF THE NOTICE OF INTENT TO SUSPEND, THEREFORE PURSUANT TO FINRA RULE 9552(H) HE IS AUTOMATICALLY BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY.

UNSUITABILITY. CLIENT SEEKS DAMAGES IN THE AMOUNT OF $369,000.

$369,000.00

$205,370.24

UNSUITABILITY OF [CUSTOMER]'S PENSION PLAN

$103,000.00

$43,655.00