SEC Seeks to Ban Brokerage Owner

The Securities and Exchange Commission is seeking to ban Betty Ann Rubin, owner of the Lazar Frederick & Co. securities brokerage, from the industry on charges that she conducted an “alleged Ponzi-like scheme.” A U.S. District Court judge in March ordered Rubin to pay $346,410 and Beverly Hills-based Lazar to pay $7.9 million in a case stemming from 1995 SEC allegations that Rubin, Lazar and others defrauded more than 2,000 people who paid a total of $35 million for interests in oil and gas wells. The SEC said the defendants actually used money from new investors to pay inflated returns to earlier investors. The SEC filed an administrative case, which will lead to a hearing during which the agency will decide whether to bar Rubin from the securities business. Rubin’s lawyer couldn’t be reached for comment. Rubin in February 1997 consented to a permanent injunction against future securities law violations without admitting or denying guilt in the case. There was no immediate comment from Rubin.