Statutory Disqualification Index
NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

In the Matter of the Association of X with The Sponsoring Firm as a General Securities Representative And Equity Trader 
MC-400: January 2002 

Redacted Decision
SD Decision No. 02001

DENIED by Hearing Panel of the NASDR Statutory Disqualification Committee/ NAC
Filed Under: Felony, Controlled Substance, Recency, Treatment/Rehabilitation, Denial
SD Event

In October 2000, X pled guilty in Superior Court, State 1, to the felony offense of possession of a controlled dangerous substance with intent to distribute within 1000 feet of school property.  Drug was ecstasy and incident occurred at X’s parent’s home (which was next to a school) when he gave drug to police informant.   The court sentenced X to serve five years' probation

Sentence Expiration
November 2005
Prior Industry Activity
RR from 1997 – 2000. 
Following sentencing RR served six months in an inpatient substance abuse program. Upon release he day traded his personal account without success and became an estimator for a window company. No regulatory history during 4 years in industry.
Sponsoring Firm
NASD member since 1953. Wholesale market making. 1 OSJ. No offices. 4 GSP. 17 RRs.  AWCs: firm quote, Censure/$10,000 fine;  limit order and trading ahead, Censure/$3,000;  trade reporting and books & records, Censure/$6,000 ;  trade reports, trading ahead, short-sale determinations, $18,000 fine. 2 LOCs
Proposed Activity
General securities rep and equity trader. Located at home office.
Proposed Supervisor
Compliance Director. GSR 1981.  GSP 1992. With firm since 1992. 1989 AWC for short selling determination ($2,500 fine).
Member Regulation Recommendation
Felony conviction a very serious matter signifying poor judgment and lack of responsibility. Recency of 1999 arrest and pendency of probationary period. Conviction less than 1 ½ years ago. Substance abuse treatment completed less than one year ago. 
Enforcement Actions