Four stock loan traders and reps in the New York area agreed to be barred from the industry to settle SEC charges they each "knowingly engaged in a scheme to defraud broker-dealers in connection with the lending and borrowing of securities." 

    Shaun Sarnicola, 32, of Brooklyn, NY.   From 1998 to 2006, he was a securities lending rep with broker-dealer Kellner Dileo & Company.   

    Salvatore Zangari, 34, of New York, NY.   From 1998 to 2009, he was a stock loan trader at several major Wall Street firms where he was responsible for negotiating, arranging and entering into stock loan transactions on behalf of the firms:  (i) 2006-2009:  UBS Securities;  (ii) 2005-2006: Banc of America Securities;  (iii) 1998-2005: Morgan Stanley.  He held Series 7 and 63 licenses.

    Darin DeMizio, 43, of Madison, NJ.   From 1991 to 2007, he was a securities lending representative with Morgan Stanley. 

    Craig DeMizio, age 44, of Colts Neck, NJ.   From 2004 to 2007, he was a securities lending rep with Swiss American Securities.

Three of the four either had pleaded guilty or were convicted by jury verdict, essentially, of knowingly and intentionally engaging in a scheme to defraud broker-dealers in connection with the lending and borrowing of securities.  Reentry into the industry by any Respondent may be conditioned upon a number of factors, including:  payment of any ordered disgorgement, any arbitration award, and any order. 

[SEC Administrative Proceedings:  Releases 34-63921 through 34-63924, 2/17]