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Datek Online Holdings FinedFor Misuing Clients Funds

Traders Magazine, May 1999

Staff Reports

Datek Online Holdings, operator of Island, the high-flying electronic communications network, has been slapped with sanctions by the Securities and Exchange Commission.

The SEC imposed the sanctions on Datek Online for erroneous financial statements and for misusing customer funds. Datek allegedly moved as much as $50 million a day from some customer accounts to settle other customer trades and to pay the firm's expenses.

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