Initiated By
NASD N/K/A FINRA
Allegations
NASD RULES 2110, 2210(D)(1)(B), 2711, 8210 - RESPONDENT, ACTING ON BEHALF OF HIS MEMBER FIRM, FAILED TO DEFINE THE MEANING OF EACH RATING USED IN THE FIRM'S RATING SYSTEM IN RESEARCH REPORTS ABOUT A SECURITIES ISSUER AND FAILED TO DISCLOSE THE PERCENTAGE OF 'BUY," "HOLD/NEUTRAL," OR "SELL" RATINGS ASSIGNED BY HIS FIRM IN RESEARCH REPORTS; PUBLISHED RESEARCH REPORTS THAT FAILED TO INCORPORATE A LINE GRAPH PRICE CHART SHOWING THE DATES ON WHICH IT MADE RECOMMENDATIONS ON THE SECURITY AND THE PRICE CHANGES RELATIVE TO THE FIRM'S RECOMMENDATIONS. IN ADDITION, DISCLOSURES OF STOCK OWNERSHIP WERE NOT CLEAR AND COMPREHENSIVE IN RESEARCH REPORTS; AND STATEMENTS IN RESEARCH REPORTS WERE UNWARRANTED OR MISLEADING. IN ADDITION, RESPONDENT FAILED TO RESPOND TO NASD REQUESTS FOR DOCUMENTS AND INFORMATION.
Resolution
U.S. COURT OF APPEALS DECISION
Bar
Bar (Permanent)
Registration Capacities Affected
All Capacities
Duration
Indefinite
Start Date
7/28/2006
Sanctions
Civil and Administrative Penalty(ies)/Fine(s)
Amount
$20,000.00
Sanctions
Monetary Penalty other than Fines
Amount
$5,651.27
Regulator Statement
HEARING PANEL DECISION RENDERED JANUARY 4, 2005 WHEREIN RESPONDENT IS BARRED FROM ASSOCIATING WITH ANY MEMBER FIRM IN ANY CAPACITY FOR HIS FAILURE TO PROVIDE INFORMATION REQUESTED BY NASD STAFF PURSUANT TO NASD PROCEDURAL RULE 8210. IN ADDITION, THE RESPONDENT IS JOINTLY AND SEVERALLY ORDERED TO PAY COSTS IN THE AMOUNT OF $3,147.16, WHICH INCLUDES AN ADMINISTRATIVE FEE OF $750 AND TRANSCRIPT COSTS OF $2,397.16. HEARING PANEL DECISION APPEALED TO THE NAC ON FEBRUARY 2, 2005. NAC DECISION RENDERED JULY 28, 2006 WHEREIN THE NAC AFFIRMED THE HEARING PANEL'S FINDINGS THAT RESPONDENT ISSUED RESEARCH REPORTS THAT FAILED TO DEFINE RATINGS OR DISCLOSE THE DISTRIBUTION OF THE FIRM'S RATING, AND THAT INCLUDED MISLEADING STATEMENTS, IN VIOLATION OF NASD RULES 2711(H)(4) AND (H)(5), 2210(D)(1)(B) AND 2110. THE NAC ALSO AFFIRMED THE HEARING PANEL'S FINDINGS THAT RESPONDENT FAILED TO RESPOND TO NASD REQUESTS FOR INFORMATION, IN VIOLATION OF NASD RULE 8210 AND 2110. HOWEVER, THE NAC REVERSED THE HEARING PANEL'S FINDINGS THAT THE RESEARCH REPORTS FAILED TO DISCLOSE THE PRICE CHART REQUIRED BY NASD RULE 2711(H)(6). THEREFORE, RESPONDENT IS FINED $20,000 AND BARRED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY. THE NAC ALSO IMPOSED $3,147.16 IN HEARING COSTS AND $2,504.11 IN APPELLATE COSTS, JOINTLY AND SEVERALLY. THE BAR IS EFFECTIVE IMMEDIATELY. NAC DECISION APPEALED TO THE SEC ON AUGUST 23, 2006. SEC APPEAL WITHDRAWN BY RESPONDENT ON SEPTEMBER 7, 2006. ASENSIO FILED A LATE APPEAL ON DECEMBER 9, 2009. SEC ADMIN RELEASE 34-62315, JUNE 17, 2010: ON JUNE 17, 2010, THE SEC ORDERED THAT NASD'S MOTION TO DISMISS THE APPLICATION FOR REVIEW IS GRANTED AND ASENSIO'S MOTIONS SEEKING TO ADDUCE SPECIFIC EXHIBITS ARE GRANTED AND ASENSIO'S MOTIONS SEEKING OTHER RELIEF ARE DENIED. JUNE 24 & JULY 7, 2010 ASENSIO FILED A MOTION FOR RECONSIDERATION. SEC ADMIN RELEASE 34-62645, AUGUST 4, 2010: SEC DENIED MOTION FOR RECONSIDERATION. AUGUST 17, 2010 - ASENSIO PETITIONED THE U.S. COURT OF APPEALS, ELEVENTH CIRCUIT FOR REVIEW OF THE SEC'S FINAL ORDER ENTERED AUGUST 4, 2010. DECEMBER 5, 2011: THE U.S. COURT OF APPEALS FOR THE ELEVENTH CIRCUIT DISMISSED ASENSIO'S CONSOLIDATED APPEAL OF TWO DECISIONS - HIS BAR FROM ASSOCIATION WITH ANY FINRA MEMBER AND THE FINRA DECISION DENYING A MEMBER FIRM'S APPLICATION TO ASSOCIATE WITH ASENSIO DESPITE THE BAR - BECAUSE ASENSIO FILED TOO LATE FOR REVIEW AND NO EXTRAORDINARY CIRCUMSTANCES JUSTIFIED EXTENDING THE FILING DEADLINE.
Broker Comment
HEARING PANEL DECISION RENDERED JANUARY 4, 2005 WHEREIN RESPONDENT IS BARRED FROM ASSOCIATING WITH ANY MEMBER FIRM IN ANY CAPACITY FOR HIS FAILURE TO PROVIDE INFORMATION REQUESTED BY NASD STAFF PURSUANT TO NASD PROCEDURAL RULE 8210. IN ADDITION, THE RESPONDENT IS JOINTLY AND SEVERALLY ORDERED TO PAY COSTS IN THE AMOUNT OF $3,147.16, WHICH INCLUDES AN ADMINISTRATIVE FEE OF $750 AND TRANSCRIPT COSTS OF $2,397.16. HEARING PANEL DECISION APPEALED TO THE NAC ON FEBRUARY 2, 2005. NAC DECISION RENDERED JULY 28, 2006 WHEREIN THE NAC AFFIRMED THE HEARING PANEL'S FINDINGS THAT RESPONDENT ISSUED RESEARCH REPORTS THAT FAILED TO DEFINE RATINGS OR DISCLOSE THE DISTRIBUTION OF THE FIRM'S RATING, AND THAT INCLUDED MISLEADING STATEMENTS, IN VIOLATION OF NASD RULES 2711(H)(4) AND (H)(5), 2210(D)(1)(B) AND 2110. THE NAC ALSO AFFIRMS THE HEARING PANEL'S FINDINGS THAT RESPONDENT FAILED TO RESPOND TO NASD REQUESTS FOR INFORMATION, IN VIOLATION OF NASD RULE 8210 AND 2110. HOWEVER, THE NAC REVERSED THE HEARING PANEL'S FINDINGS THAT THE RESEARCH REPORTS FAILED TO DISCLOSE THE PRICE CHART REQUIRED BY NASD RULE 2711(H)(6). THEREFORE, RESPONDENT IS FINED $20,000 AND BARRED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY. THE NAC ALSO IMPOSED $3,147.16 IN HEARING COSTS AND $2,504.11 IN APPELLATE COSTS, JOINTLY AND SEVERALLY. THE BAR IS EFFECTIVE IMMEDIATELY. NAC DECISION APPEALED TO THE SEC ON AUGUST 23, 2006. SEC APPEAL WITHDRAWN BY RESPONDENT ON SEPTEMBER 7, 2006. ASENSIO FILED A LATE APPEAL ON DECEMBER 9, 2009. SEC ADMIN RELEASE 34-62315, JUNE 17, 2010: ON JUNE 17, 2010, THE SEC ORDERED THAT NASD'S MOTION TO DISMISS THE APPLICATION FOR REVIEW IS GRANTED AND ASENSIO'S MOTIONS SEEKING TO ADDUCE SPECIFIC EXHIBITS ARE GRANTED AND ASENSIO'S MOTIONS SEEKING OTHER RELIEF ARE DENIED. JUNE 24 & JULY 7, 2010 ASENSIO FILED A MOTION FOR RECONSIDERATION. SEC ADMIN RELEASE 34-62645, AUGUST 4, 2010: SEC DENIED MOTION FOR RECONSIDERATION. AUGUST 17, 2010 - ASENSIO PETITIONED THE U.S. COURT OF APPEALS, ELEVENTH CIRCUIT FOR REVIEW OF THE SEC'S FINAL ORDER ENTERED AUGUST 4, 2010.
