***¶*** Naked shorting sanctioned, broker fined...
nasdr.com
Firms Expelled, Individual Sanctioned
Falcon Trading Group, Inc. (CRD #30361, Boca Raton, Florida), Sovereign
Equity Management Corp. (CRD #20016, Deerfield Beach, Florida), and Glen
Thomas Vittor (CRD #1565323, Registered Principal, Deerfield Beach, Florida)
were fined $1 million, jointly and severally. In addition, the firms were expelled
from NASD membership and Vittor was barred from association with any NASD
member in any capacity. The sanctions were based on findings that the
respondents effected short sales for the firms' own accounts and failed to make an
affirmative determination that the firms could borrow the securities or otherwise
provide for delivery of the securities by the settlement date. The findings also
stated that the respondents, in cooperation with others, attempted to obtain stock
at below-market prices through the use of threats and coercion, and that, through
naked short sales and extortion, the respondents participated in a manipulation of
the market for those securities. (NASD Case #CAF980002) |
