Amadeusz Juskowiak

Sears s dean witter unit agrees to sec censure

Federal regulators said Dean Witter Reynolds Inc the brokerage subsidiary of Sears Roebuck and Co agreed to a censure to settle charges that it failed to fully report cash transactions

In a complaint which was issued simultaneously with the settlement the Securities and Exchange Commission charged Dean Witter the fourth largest US brokerage house with failing to report more than one mln dlrs of cash transactions

In its administrative complaint the SEC stressed that was not charging Dean Witter with taking part in a scheme to launder cash

But it said it found 35 single lump sum cash deposits in excess of 10000 dlrs made with Dean Witters branch offices and another three multiple cash deposits made by a customer on a single day which totaled more than 10000 dlrs The total unreported cash was 1062234 dlrs the agency said

Federal law requires brokerage firms and banks to report to the Treasury Department all cash deposits greater than 10000 dlrs

After examining seven pct of the Dean Witters branch offices between July 1983 and April 1985 the SEC said it found that the firm reported 1880376 dlrs in cash deposits each of which had been greater than 10000 dlrs but failed to report another 1062234 dlrs

Besides agreeing to the censure Dean Witter agreed to tighten its oversight of its branch offices

Another major brokerage firm EF Hutton Group Inc recently disclosed in an SEC filing that a federal grand jury in Providence RI was probing its compliance with cash deposit reporting requirements at its Providence office

Reuter