- 10 -
During 1986, Mr. Gordon sustained a total net loss of
$319,973 (net trading loss) from his activities as an options
market maker.8 Because of that loss, Mr. Gordon owed Wagner
Stott approximately $185,000, which he was unable to repay. He
instead agreed that Wagner Stott sell his AMEX seat, which it did
for $249,000 on January 19, 1987. Wagner Stott applied those
sale proceeds to the amount that Mr. Gordon owed it and remitted
the difference to Mr. Gordon.
Sometime between January and July 1987, Mr. Gordon and
another individual formed a partnership that operated under the
name Ronald Gordon and Company (partnership) and that leased a
seat on the AMEX for a six-month period that commenced on July
24, 1987, and terminated on January 21, 1988. Mr. Gordon oper-
ated as an options market maker on the AMEX on behalf of that
partnership for a one-month period between July and October 1987
during which losses were sustained. The partnership terminated
its lease of the AMEX seat prior to the expiration of its lease
term.
Throughout the period that commenced sometime in October
1987 until sometime in January 1988, Mr. Gordon was employed by
Drexel, Burnham, Lambert as an upstairs trader.
Throughout the period that commenced sometime in January
1988 until sometime in 1989, Mr. Gordon was employed by MKI
8 The record does not disclose the gain or loss that resulted
from each option that Mr. Gordon traded during 1986.
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