Gruntal Financial Corporation

Gruntal Financial Corporation
Item# 2603
$19.95

       




Stock Certificate, issued/canceled
1980's
Security-Columbian Bank Note Company
The item shown is representative of the one you will receive









       





       

   





Gruntal was founded in 1880 and headquartered in New York City in a single office on Broadway. The securities broker survived the 1929 stock market crash, expanded to 11 offices and went public in 1983, and established offices throughout the U.S. after being purchased by a Swiss-based insurance company in 1987.

But Gruntal's story of success turned into a tale of greed and back-office wheeling and dealing in 1994, when the company announced that it had discovered an embezzlement scheme by three senior officials. In a 10-year period, the former officials bilked customers and the company out of about $14 million. Gruntal admitted to lapses in regulatory oversight. In 1995, former chairman and CEO Howard Silverman (whose printed signature appears on this certificate) stepped down; he was rumored to have been pushed out. The next year, the company agreed to $6.2 million in fines, and set aside an additional $5.5 million to cover future claims.

The company was restructured in 1997 as a limited liability company and sold to a management group led by current CEO Robert Rittereiser. Despite its recent troubles, Gruntal is still a financial powerhouse, with $195 million in capital and $2.9 billion in assets. In April 1999, Gruntal announced that it was going to join forces with Florida-based A.F. Best Securities. But in June 1999, scandal resurfaced as the SEC sued two former senior managers, contending they diverted $11 million from customer accounts.NY-New York Finance and Related Brokerage Houses Scandals and Collapses Male Subject Allegorical Featured Allegorical Freedom Skyline Scene World Trade Center Featured



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