Originally Syndicated on May 14, 2024 @ 11:54 am
Who is Daniel D. Purjes?
Daniel D. Purjes claims to be a native New Yorker who was raised by a housewife and a taxi driver. He has completed the requirements for a Ph.D. and holds bachelor’s and master’s degrees in computer technology. He oversaw software development for a number of major corporations in addition to starting, expanding, and selling a software development firm.
Daniel D. Purjes built many businesses from the ground up, generating successful sales in the tens and hundreds of millions of dollars before selling them to larger firms. Daniel D. Purjes sold a small NYSE member securities company to one of the country’s top banks after taking it and increasing it fiftyfold. He continued to build more profitable firms, including software, solar energy, and digital printing.
These days, Daniel D. Purjes works long hours for The Purjes Foundation, a nonprofit that he and his wife founded and continue to support. He actively supports excellent causes, particularly those that deal with health, in addition to giving money to them. Daniel D. Purjes has served on the boards of numerous national and local nonprofits, including the American Tinnitus Association, the Abraham Fund, the Plantrician Project, Plant-based Utah, and others.
Daniel D. Purjes is the father of an adult daughter and son, as well as the stepfather of an adult daughter. He is an avid biker, hiker, snowshoer, and skier. He likes to read and see operas, concerts, museums, and scientific lectures. In addition to being an avid rider of his 1970 Triumph Bonneville, he is an amateur astronomer. He is deeply interested in all religions and studies Zen.
The NASD Regulation Hearing Panel fined Josephthal & Co., Inc. and two executives $3.3 million and ordered them to pay restitution for unfair dealings with customers and fraud
Josephthal & Co., Inc., a financial company with headquarters in New York City, and several of its executives have been fined $3.3 million for conspiratorially scamming more than 360 people. During a sales drive in 1996, the scam violated federal securities laws and NASD conduct requirements. It was described as employing strategies analogous to “boiler room” operations.
The plan was to sell off the company’s approximately one million common shares in VictorMaxx Technologies, Inc. Reparations of over $1.5 million plus interest was mandated for customers who were duped by the company and its officials. Furthermore, Josephthal, its president Paul H. Fitzgerald, and its then-CEO Daniel D. Purjes were fined $500,000 apiece.
Aggressive strategies were used in the sales campaign, such as false price projections, unreported compensation plans, illegal trades, and other infractions of sales procedures. During ten working days, Josephthal’s brokers sold about a million shares or roughly 36% of the tradable shares of VictorMaxx’s ordinary stock.
Josephthal’s sales team shorted an extra 277,000 shares to continue selling after they had run out of inventory. Investors who purchased during the deceptive sales campaign suffered large losses as a result of the sharp decline in VictorMaxx’s stock price.
The Hearing Panel determined that Josephthal and its management had engaged in heinous behavior that seriously damaged investors. The problem was made worse by false testimony given throughout the hearing. Josephthal was consequently forced to hire a third-party consultant to examine its procedures and make the essential adjustments to guarantee that it complied with the law.
After the situation became public in December 1999, official disciplinary procedures were to be carried out by a Hearing Panel. Unless it is appealed, the Panel’s judgment is final after 45 days, during which the punishments are not enforced.
(NASD Case No. C3A990071)
Conclusion
In conclusion, Daniel D. Purjes, a native of New York with a varied history in technology and entrepreneurship, is embroiled in a major legal dispute involving the financial firm he was affiliated with, Josephthal & Co., Inc. A $3.3 million fine was imposed on the firm, Purjes, and other executives for engaging in deceptive acts that caused harm to over 360 people in a 1996 sales campaign.
Investors who bought shares of VictorMaxx Technologies, Inc. suffered significant losses as a result of the scheme, which used aggressive methods and broke securities rules. The Hearing Panel found that Josephthal and its executives had engaged in outrageous activity, which had serious repercussions and necessitated hiring a consultant to guarantee regulatory compliance. The case emphasizes the value of moral behavior in the financial sector as well as the repercussions of dishonest behavior.
