In 2001 X pled guilty to felony of operating a motor vehicle under the influence of alcoholand was sentenced to perform 60 days of community service, serve 120 days in the County work release facility, serve four months on "tether," serve 20 months' probation (until 2002), and participate in an alcoholism treatment program.  Had two prior DUI convictions in 1999 and 1992.

2002

RR from 1991.

Also licensed insurance representative. No regulatory history during 10 years in industry.  Three customer complaints.1995 Chapter 13 bankruptcy filing resulting in 1999 discharge.

NASD member since 1998. General securities business. 12 OSJs and 14 branches. Employs 13 unregistered persons, 25 registered principals, and 108 RRs.  One LOC in 2001.  2002 Firm subject to Rule 3010(b)(2) Taping Rule.

General securities rep to work from his home in State 1.  Firm located in State 2.  Proposed Supervisor based in State 2.

President and CEO.  GSR 1991. GSP 1992. With firm since its inception in 1998. No regulatory history. Two customer complaints pertaining to prior firm.  $25,000 settlement.

Permitted

Ten year struggle with alcoholism compelled conclusion that failure to seek treatment until third conviction demonstrated poor judgment.  Conviction less than 1 year ago. Pendency of probationary period. X would be operating in a state other than that where main office and proposed supervisor are located --- some hundreds of miles distance.  Proposed weekly videoconferences not sufficiently heightened supervision. Firm has grown rapidly and is subject to Taping Rule and may not be able to handle SD supervision at this time.

Frank Kufrovich, Exchange Act Rel. No. 4537 (Feb. 13, 2002) [nature and recency of a felony].