Jack Asbury Alexander (CRD #2760, Registered Principal, Poway,
California) submitted an Offer of Settlement in which he was
barred from association with any NASD member in any capacity and
required to cooperate with the NASD in any further investigation
and hearing relating to his member firm and a speculative
security. Without admitting or denying the allegations, Alexander
consented to the described sanctions and to the entry of findings
that he recklessly caused his member firm to act as a marker
maker in, and enter bids for, a speculative security on the Over-
the-Counter Bulletin Board(r) (OTCBB) on a continuous basis when
he was aware the firm was engaged in a distribution. The findings
also stated that Alexander caused his firm to purchase stocks in
the security from both customers and other broker/dealers for the
firm's proprietary account, and caused the firm's sales force to
recommend the purchase of the stock to retail customers while the
distribution was still in progress. In addition, the NASD found
that Alexander caused his firm to engage in a series of
activities designed to artificially increase the price of the
stock while dominating and controlling the market. Furthermore,
the NASD found that Alexander recklessly, by the use of the means
and instrumentalities of interstate commerce, or of the mails,
employed devices, schemes, or artifices to defraud, made untrue
statements of material facts or omitted to state material facts
necessary in order to make the statements made, in light of the
circumstances under which they were made, not misleading; or
engaged in acts, practices, or courses of business that operated,
or would have operated, as a fraud or deceit upon customers in
connection with the purchase or sale of securities. (NASD Case #CAF010016)
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