In May 2002, X was charged in a State 1 court with misdemeanor theft of property (stolen memory disks from a Costco store
). X pled nolo contendere, convicted of misdemeanor property theft, placed on summary probation for one year, ordered to serve three days in county jail, and required to pay $110 in fines and restitution. X’s conviction was later discharged. The actual misdemeanor theft of property conviction against X is not a statutorily disqualifying event
X is statutorily disqualified because he failed to cause an amendment to be filed to his Uniform Application for Securities Industry Registration or Transfer (“Form U4”) to reflect that he had been charged with and convicted of misdemeanor property theft. In 2004, NASD's Department of Enforcement (“Enforcement”) accepted X’s submission of a Letter of Acceptance, Waiver and Consent (“AWC”) for this violation. NASD suspended X for nine months in any capacity and imposed a $5,000 fine. The AWC also specifically provided that:
[X] understand[s] that this settlement includes a finding that . . . [he] willfully misrepresented a material fact on a Form U-4, and that . . .this misrepresentation makes [him] subject to a statutory disqualification with respect to association with a member.
In the AWC, X consented to NASD's finding that, from May 2002, through February 2003, while he was associated with Firm One, he willfully failed to disclose his misdemeanor property theft charge and conviction. The AWC further stated that X failed to take any other steps during the relevant period to ensure that his Form U4 was amended to reflect the misdemeanor property theft charge and conviction. X represents that he orally disclosed the misdemeanor charge and conviction to the Sponsoring Firm during his first job interview with the Firm in November 2002, and the record shows that he disclosed the incident on the Form U4 he filed with the Sponsoring Firm in February 2003.