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N E W Y O R K S T O C K E X C H A H G E, I N C.

THOMAS JUNGHO YU, A FORMER REGISTERED REPRESENTATIVE

WITH MERRILL LYNCH, PIERCE, FENNER & SMITH

INCORPORATED, ENGAGED IN CONDUCT INCONSISTENT WITH JUST

AND EQUITABLE PRINCIPLES OF TRADE IN THAT HE

MISAPPROPRIATED CUSTOMER SECURITIES -- PERMANENT SAX.

EXCHANGE HEARING PANEL DECISION 89-45

April 27, 1989

An Exchange Hearing Panel met to consider a Stipulation of

Facts ana consent to Penalty entered into between the Exchange'sDivision of Enforcement and Thomas Jungho Yu, a former registered

representative with Merrill Lynch, Pierce, Fenner & Smith

Incorporated. Without admitting or denying guilt, Yu consents to a

finding by the Hearing Panel that he engaged in conduct inconsistent

with just and equitable principles of trade in that he

misappropriated customer securities.

For the sole purpose of settling this disciplinary

proceeding, the Division of Enforcement and Yu stipulate to certain

facts, the substance of which follows:

1. Thomas Jungho Yu was born on November 27, 1961.

Yu was first employed in the securities industry by

Merrill Lynch, Pierce, Fenner & Smith Incorporated (the

"firm") on February 18, 1986. He was approved as a

registered representative on June 16, 1986. Yu was

discharged from employment with the firm on September

4, 1987. Yu is not presently employed in the

securities industry.

2. By letter dated August l, 1988, which Yu received,

the Division of Enforcement advised Yu that it was

investigating a matter which occurred while he was

employed at the firm.

3. As a firm registered representative, Yu serviced

the account of firm customer A. In August of 1987, Yuutilized the branch office computer system to change

customer A's address of record to 2636 Blackmore Street

#314, Houston, Texas. Yu's own address was #150 at the

same building address.

4. Un August 24, 1987, Yu caused a certificate representing

656 XYZ Corporation shares to be delivered out of customer

A's account to the address entered by Yu without customer

A's authorization.

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5. In September of 1987, the firm computer system

was once again entered by Yu and customer A's correct

record address was replaced.

6. The detection of the missing 650 shares of XYZ

occurred when customer A did not receive a dividend

check in October of 1987.

7. Customer A contacted the new registered representative

who assumed management of her account after Yu's discharge.

The new registered representative was advised by the

transfer agent that the address of the registered owner had

been changed to that of Yu.

8. Yu had the 650 XYZ shares transferred to his name

by forging customer A's signature to assignment and

transfer documents without her knowledge or

authorization.

9. Yu submitted a signed letter to the firm in whichhe admitted the misappropriatIon of the 650 XYZ shares,

selling a portion thereof and converting the proceeds

to 'is own use.

DECISION

The Hearing Panel, in accepting the Stipulation of Facts

and consent to Penalty, found Yu guilty as set forth above by

unanimous vote.

PENALTY

In view of the above findings, the Hearing Panel, by

unanimous vote, imposed the penalty consented to by Yu of a

permanent bar from membership, allied membership, approved person

status and from employment or association in any capacity with any

member or member organization.

For the Hearing Panel

John J. Mulcahy, Jr.Chief Hearing Officer