The SEC said it censured Shearson Lehman Bros.

In addition to the New York brokerage, the commission censured Stein Roe & Farnham, a Chicago investment advisory firm. The commission charged that the two firms had failed “to have reasonably supervised” four employees who allegedly engaged in a scheme to defraud clients of both companies, including union pension and welfare funds. The firms signed consent decrees settling the charges without admitting or denying any wrongdoing. In July, the SEC charged John Giura, who resigned from Stein Roe in June, 1985, George and John Inserra, brothers who formerly worked for Shearson, and current Shearson employee Nicholas J. Gentile with involvement in the scheme.