Great Eastern Securities, Inc. (CRD #2061, New York, New York), Alphonse Mekalainas Jr. (CRD #1276859, Registered Principal, Las Vegas, Nevada), Ernest Richard Viola (CRD #2719728, Registered Principal, Peekskill, New York) and Jeffrey Scott Ramson (CRD #1574903, Registered Principal, New York, New York) submitted Offers of Settlement in which the firm and Ramson were fined $100,000, jointly and severally, and the firm was ordered to retain an independent consultant to review the firm’s policies, systems, procedures and training relating to supervisory deficiencies, and submit a report to NASD with recommendations. Ramson was barred from association with any NASD member in a principal capacity and suspended from association with any NASD member in any capacity for six months. Mekalainas was fined $25,000 and suspended from association with any NASD member in any capacity for one year, to be followed by an 18-month suspension in a principal capacity. The fine must be paid before Mekalainas reassociates with any NASD member following the one-year suspension, or before he requests relief from any statutory disqualification. Viola was fined $5,000, barred from association with any NASD member in a principal capacity and suspended from association with any NASD member in any capacity for 60 days. The fine must be paid before Viola reassociates with any NASD member following the suspension, or before he requests relief from any statutory disqualification.

Without admitting or denying the allegations, the firm and Ramson consented to the described sanctions and to the entry of findings that the firm, acting through Ramson, failed to take reasonable measures to ensure that Viola, a designated principal assigned to supervise a registered representative, was diligently exercising the supervisory authority delegated to him. The findings stated that the firm and Ramson failed to enforce the firm’s supervisory system and written procedures, and Ramson failed to supervise the registered representatives assigned to the firm’s home office. The findings also stated that the firm, acting through Ramson, failed to ensure that the designated principal responsible for maintaining and enforcing the firm’s supervisory system and procedures and for supervising the representatives at the home office reasonably exercised the delegated duties assigned to him. The findings also included that Mekalainas failed to take reasonable steps to verify that a branch office was being adequately supervised and that Viola was diligently exercising his delegated supervisory responsibilities over the branch. NASD found that Mekalainas failed to reasonably supervise a registered representative’s activities and permitted him to engage in securities transactions without proper registration. NASD also found that Viola failed to monitor and inspect a registered representative’s off-site office, enforce effective procedures to supervise his outside business activities, review his customers’ securities transactions daily and accurately identify his supervisors in the firm’s written supervisory procedures as well as the specific areas of supervision for which the supervisors were responsible.

Ramson’s suspension in any capacity is in effect from December 1, 2006, through May 31, 2007. Mekalainas’ suspension in any capacity is in effect from December 4, 2006, through December 3, 2007, and his suspension in a general securities principal capacity is in effect from December 4, 2007, through June 3, 2009. Viola’s suspension in any capacity is in effect from December 4, 2006, through February 1, 2007. (NASD Case #20042000053-02)