Broker Fined $150,000 for Improper Trading

A New York broker was fined $150,000 for profiting from confidential information he received after securing seats on the bankruptcy committees of WorldCom Inc., Adelphia Communications Corp. and Globalstar, regulators said Monday.

Van D. Greenfield, 60, manager of Blue River Capital, was accused of directing trades based on nonpublic information about the distressed companies in 2001 and 2002, the Securities and Exchange Commission said. Blue River earned $167,309 from trades in Globalstar, $664,241 from Adelphia securities and $424,290 from WorldCom transactions during the time he was on the issuers’ committees.

“Greenfield was bound to maintain the confidentiality of information he obtained as a committee member,” the SEC said. Greenfield, who didn’t admit or deny wrongdoing, was suspended for six months from associating with any broker or dealer. Blue River, which voluntarily filed to withdraw its registration with the commission, hasn’t conducted broker-dealer business since Nov. 30.