In re ROSS B. SHAPIRO

 
 
 
 UNITED STATES OF AMERICA 
 Before the 
 SECURITIES AND EXCHANGE COMMISSION 
 
SECURITIES EXCHANGE ACT OF 1934 
Release No. 84390 / October 10, 2018 
 
INVESTMENT ADVISERS ACT OF 1940 
Release No. 5056 / October 10, 2018 
 
ADMINISTRATIVE PROCEEDING 
File No. 3-18863 
 
 
 
In the Matter of 
 
ROSS B. SHAPIRO,  
 
Respondent. 
 
 
 
 
ORDER INSTITUTING  
ADMINISTRATIVE PROCEEDINGS 
PURSUANT TO SECTION 15(b) OF THE 
SECURITIES EXCHANGE ACT OF 1934 
AND SECTION 203(f) OF THE 
INVESTMENT ADVISERS ACT OF 1940, 
MAKING FINDINGS, AND IMPOSING 
REMEDIAL SANCTIONS 
 
 
 
 
I. 
 
 The Securities and Exchange Commission (“Commission”) deems it appropriate and in the 
public interest that public administrative proceedings be, and hereby are, instituted pursuant to 
Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Section 203(f) of the 
Investment Advisers Act of 1940 (“Advisers Act”) against Ross B. Shapiro (“Respondent”).   
 
II. 
 
 In anticipation of the institution of these proceedings, Respondent has submitted an Offer 
of Settlement (the “Offer”) which the Commission has determined to accept.  Solely for the 
purpose of these proceedings and any other proceedings brought by or on behalf of the 
Commission, or to which the Commission is a party, and without admitting or denying the findings 
herein, except as to the Commission’s jurisdiction over him and the subject matter of these 
proceedings and the findings contained in paragraph III.2. below, which are admitted, Respondent 
consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b) 

 
 2 
of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940, 
Making Findings, and Imposing Remedial Sanctions (“Order”), as set forth below.   
 
III. 
 
 On the basis of this Order and Respondent’s Offer, the Commission finds that 
 
1. Respondent was the head trader on the residential mortgage-backed securities 
(“RMBS”) desk at Nomura Securities International, Inc., a broker-dealer and investment adviser 
registered with the Commission.  From August 2009 through May 2016 Respondent was a 
registered representative associated with Nomura. 
   
2. On October 3, 2018, a final judgment was entered by consent against Respondent, 
permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 
and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in the civil action entitled 
Securities and Exchange Commission v. Ross B. Shapiro, et al., Civil Action Number 15 Civ. 
7045, in the United States District Court for the Southern District of New York.  
 
  3. The Commission’s complaint alleged that, in connection with the sale of RMBS at 
Nomura, Respondent repeatedly made materially misleading statements to customers about, among 
other things, the prices at which Nomura had bought and/or sold RMBS and the amount of the 
firm’s compensation for arranging the trades. 
 
IV. 
 
 In view of the foregoing, the Commission deems it appropriate and in the public interest to 
impose the sanctions agreed to in Respondent’s Offer. 
 
 Accordingly, it is hereby ORDERED pursuant to Section 15(b)(6) of the Exchange Act, 
and Section 203(f) of the Advisers Act,  that Respondent Shapiro 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 
 
 Pursuant to Section 15(b)(6) of the Exchange Act  Respondent Shapiro be, and hereby is 
barred from participating in any offering of a penny stock, including: acting as a promoter, finder, 
consultant, agent or other person who engages in activities with a broker, dealer or issuer for 
purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the 
purchase or sale of any penny stock; with the right to apply for reentry after two years to the 
appropriate self-regulatory organization, or if there is none, to the Commission. 
 
Any reapplication for association by the Respondent will be subject to the applicable laws 
and regulations governing the reentry process, and reentry may be conditioned upon a number of 
factors, including, but not limited to, the satisfaction of any or all of the following:  (a) any 
disgorgement ordered against the Respondent, whether or not the Commission has fully or partially 

 
 3 
waived payment of such disgorgement; (b) any arbitration award related to the conduct that served 
as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a 
customer, whether or not related to the conduct that served as the basis for the Commission order; 
and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct 
that served as the basis for the Commission order. 
 
 For the Commission, by its Secretary, pursuant to delegated authority. 
 
  
       Brent J. Fields 
       Secretary 
 

UNITED STATES OF AMERICA 

 Before the 

 SECURITIES AND EXCHANGE COMMISSION 

 

SECURITIES EXCHANGE ACT OF 1934 

Release No. 84390 / October 10, 2018 

 

INVESTMENT ADVISERS ACT OF 1940 

Release No. 5056 / October 10, 2018 

 

ADMINISTRATIVE PROCEEDING 

File No. 3-18863 

 

 

 

In the Matter of 

 

ROSS B. SHAPIRO,  

 

Respondent. 

 

 

 

 

ORDER INSTITUTING  

ADMINISTRATIVE PROCEEDINGS 

PURSUANT TO SECTION 15(b) OF THE 

SECURITIES EXCHANGE ACT OF 1934 

AND SECTION 203(f) OF THE 

INVESTMENT ADVISERS ACT OF 1940, 

MAKING FINDINGS, AND IMPOSING 

REMEDIAL SANCTIONS 

 

 

 

 

I. 
 

 The Securities and Exchange Commission (“Commission”) deems it appropriate and in the 

public interest that public administrative proceedings be, and hereby are, instituted pursuant to 

Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Section 203(f) of the 

Investment Advisers Act of 1940 (“Advisers Act”) against Ross B. Shapiro (“Respondent”).   

 

II. 
 

 In anticipation of the institution of these proceedings, Respondent has submitted an Offer 

of Settlement (the “Offer”) which the Commission has determined to accept.  Solely for the 

purpose of these proceedings and any other proceedings brought by or on behalf of the 

Commission, or to which the Commission is a party, and without admitting or denying the findings 

herein, except as to the Commission’s jurisdiction over him and the subject matter of these 

proceedings and the findings contained in paragraph III.2. below, which are admitted, Respondent 

consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b) 



 

 2 

of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940, 

Making Findings, and Imposing Remedial Sanctions (“Order”), as set forth below.   

 

III. 
 

 On the basis of this Order and Respondent’s Offer, the Commission finds that 

 

1. Respondent was the head trader on the residential mortgage-backed securities 

(“RMBS”) desk at Nomura Securities International, Inc., a broker-dealer and investment adviser 

registered with the Commission.  From August 2009 through May 2016 Respondent was a 

registered representative associated with Nomura. 

   

2. On October 3, 2018, a final judgment was entered by consent against Respondent, 

permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 

and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in the civil action entitled 

Securities and Exchange Commission v. Ross B. Shapiro, et al., Civil Action Number 15 Civ. 

7045, in the United States District Court for the Southern District of New York.  

 

  3. The Commission’s complaint alleged that, in connection with the sale of RMBS at 

Nomura, Respondent repeatedly made materially misleading statements to customers about, among 

other things, the prices at which Nomura had bought and/or sold RMBS and the amount of the 

firm’s compensation for arranging the trades. 

 

IV. 

 

 In view of the foregoing, the Commission deems it appropriate and in the public interest to 

impose the sanctions agreed to in Respondent’s Offer. 

 

 Accordingly, it is hereby ORDERED pursuant to Section 15(b)(6) of the Exchange Act, 

and Section 203(f) of the Advisers Act,  that Respondent Shapiro 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 

 

 Pursuant to Section 15(b)(6) of the Exchange Act  Respondent Shapiro be, and hereby is 

barred from participating in any offering of a penny stock, including: acting as a promoter, finder, 

consultant, agent or other person who engages in activities with a broker, dealer or issuer for 

purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the 

purchase or sale of any penny stock; with the right to apply for reentry after two years to the 

appropriate self-regulatory organization, or if there is none, to the Commission. 

 

Any reapplication for association by the Respondent will be subject to the applicable laws 

and regulations governing the reentry process, and reentry may be conditioned upon a number of 

factors, including, but not limited to, the satisfaction of any or all of the following:  (a) any 

disgorgement ordered against the Respondent, whether or not the Commission has fully or partially 



 

 3 

waived payment of such disgorgement; (b) any arbitration award related to the conduct that served 

as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a 

customer, whether or not related to the conduct that served as the basis for the Commission order; 

and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct 

that served as the basis for the Commission order. 

 

 For the Commission, by its Secretary, pursuant to delegated authority. 

 

  

       Brent J. Fields 

       Secretary