From July 1990 through March 1997, Melillo was President of, and associated with, Euro-Atlantic Securities, Inc. On February 22, 2002, Melillo pled guilty to one count of conspiracy to commit securities fraud before the United States District Court for the Eastern District of New York. Melillo was fined $100,000 and barred permanently from working with any NASD broker-dealer. The count to which Melillo pled guilty alleged, inter alia, that Melillo conspired to defraud investors and obtained money and property by means of materially false and misleading statements. Between August 1, 1996 and October 31, 1996, Melillo and others sold the securities of Hollywood Productions, Inc. ("Hollywood"). In connection with the sale of Hollywood's securities, Melillo artificially raised and maintained the price of Hollywood's securities by, among other things, directing brokers to make false and materially misleading statements to customers, and also paid bribes to such brokers who fraudulently marketed Hollywood's securities