August 4, 1999
Web posted at: 7:56 a.m. EDT (1156 GMT)

In this story: All-Tech: Inquiry unnecessary 'Able to handle the losses' RELATED STORIES, SITES

ATLANTA (CNN) -- Georgia is investigating whether Mark Barton, the man who killed nine people and injured 13 others at two Atlanta brokerage firms last week, had been illegally conducting day trading on behalf of other people.

The shootings, at Momentum Securities and All-Tech Investment Group, came after Barton killed his estranged wife and two children. He later killed himself. In all, 13 people died.

Georgia Secretary of State Cathy Cox said remarks made by All-Tech Chief Executive Officer Harvey Houtkin after the shootings made state securities investigators wonder whether Barton was investing alone or was trading for others.

"The issues go to the heart of securities regulation," Cox told CNN. "It's our duty to protect the public and make sure only licensed, reputable, educated, competent stockbrokers and dealers and investment advisers are out there trading and selling and advising Georgia citizens."

The state Securities and Business Regulation Division has requested all documents and records involving Barton's trading at the two firms.

If Barton was trading for others, any sanctions against a securities firm would be administrative, not criminal, Georgia officials said.

All-Tech: Inquiry unnecessary

Houtkin, contacted by CNN at All-Tech's New Jersey headquarters, acknowledged he made statements during TV interviews that Barton may have been trading for others, but said a later review of Barton's trading record found he traded for no one but himself.

Houtkin said Georgia's inquiry, which the state calls "informal," is unnecessary.

"That could've been resolved with a simple phone call. Why do I have to get this from the press?" he said.

Informed of Houtkin's comments, Cox said the investigation would continue nonetheless.

"He clearly said it," she said, referring to Houtkin's statements.

"All we want to know at this point is why did he say it? Give us the names or records that indicate that this may have happened. Give us every shred of evidence you have that make you believe this might have happened," Cox said.

'Able to handle the losses'

All-Tech has refused to release specifics about Barton's trading practices to the news media. However, Houtkin said Barton made more than $106,000 on one day, and it's also been disclosed he lost an equal amount in a month's trading with Momentum Securities.

"This man was accustomed to significant swings. He'd make big, he'd lose big. He was an active, aggressive trader," Houtkin said.

"Did he lose money? Yes, he lost money."

Judging from the net worth Barton said he had, Houtkin added, "He was well able to handle the losses he took."

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