FINRA

NASD RULES 2110, 2330, 3010(B)(2) - A MEMBER FIRM, ACTING THROUGH BIDDICK, TRANSFERRED, OR CAUSED TO BE TRANSFERRED, SHARES OF A COMMON STOCK TO THE FIRM'S PROPRIETARY TRADING ACCOUNT WITHOUT THE KNOWLEDGE, AUTHORIZATION, CONSENT OF OR NOTICE TO PUBLIC CUSTOMERS AND DID NOT PROVIDE ANY CUSTOMER WITH COMPENSATION FOR THE TRANSFERRED SHARES. WITHOUT THE KNOWLEDGE, AUTHORIZATION, CONSENT OF OR NOTICE TO THE CUSTOMERS, THE FIRM, ACTING THROUGH BIDDICK, SOLD SOME OF THE SHARES AND RECEIVED SALES PROCEEDS OF APPROXIMATELY $39,940 INTO ITS PROPRIETARY TRADING ACCOUNT AND CAUSED THE TRANSFER OF THE SHARES INTO THE FIRM'S OPERATING BANK ACCOUNT WHERE THE PROCEEDS WERE APPLIED TOWARD THE FIRM'S OPERATING EXPENSES AND USED THE VALUE OF THE SECURITIES AND PROCEEDS IN COMPUTATIONS OF THE FIRM'S COMPLIANCE WITH SEC RULE 15C3-1. UPON RECEIPT OF COMPLAINTS FROM SOME CUSTOMERS, THE FIRM, ACTING THROUGH BIDDICK, RETURNED THE CUSTOMERS' SHARE POSITIONS OF THE SECURITIES TO THEIR ACCOUNTS BUT DID NOT RETURN ANY SHARES TO ANY OTHER CUSTOMERS. THESE ACTIONS BY THE FIRM AND BIDDICK CONSTITUTE MISUSE OF CUSTOMER SECURITIES. THE FIRM, ACTING THROUGH BIDDICK, UTILIZED THE INSTRUMENTALITIES OF INTERSTATE COMMERCE TO ENGAGE IN TRANSACTIONS IN SECURITIES BUSINESS WHILE FAILING TO MAINTAIN ITS MINIMUM NET CAPITAL. ACTING THROUGH BIDDICK, THE FIRM FAILED TO COMPLY WITH THE TAPING RULE IN THAT IT FAILED TO PROVIDE NOTICE TO ALL CUSTOMERS, POTENTIAL CUSTOMERS AND ALL PARTIES ENGAGED IN TELEPHONE COMMUNICATIONS WITH THE FIRM THAT IT WAS RECORDING INCOMING AND OUTGOING TELEPHONE COMMUNICATIONS.

Decision

Bar (Permanent)

All Capacities

Indefinite

2/24/2010

Disgorgement

$38,946.06

Monetary Penalty other than Fines

$2,078.60

HEARING PANEL DECISION RENDERED DECEMBER 18, 2008 WHEREIN BIDDICK IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR MISUSE AND CONVERSION OF CUSTOMER FUNDS. NO ADDITIONAL SANCTION IMPOSED FOR THE NET CAPITAL VIOLATION. IN LIGHT OF THE BAR, THE HEARING PANEL DECLINED TO DETERMINE IF BIDDICK FAILED TO NOTIFY CUSTOMERS AND POTENTIAL CUSTOMERS THAT THEIR CALLS WERE BEING RECORDED IN VIOLATION OF NASD RULES 2110 OR 3010(B)(2). APPEALED TO THE NAC ON JANUARY 5, 2009. NAC DECISION RENDERED FEBRUARY 24, 2010 WHEREIN THE HEARING PANEL'S FINDINGS THAT BIDDICK VIOLATED NASD RULES 2330 AND 2110 BY CONVERTING AND MISUSING CUSTOMER SECURITIES ARE AFFIRMED; THEREFORE, BIDDICK IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY, ORDERED TO DISGORGE $38,946.06, PLUS INTEREST, JOINTLY AND SEVERALLY, TO CUSTOMERS, AND ORDERED TO PAY HEARING COSTS OF $2,078.60, JOINTLY AND SEVERALLY. SATISFACTORY PROOF OF PAYMENT OF DISGORGEMENT AMOUNTS OR OF REASONABLE AND DOCUMENTED EFFORTS UNDERTAKEN TO EFFECT PAYMENT SHALL BE PROVIDED TO FINRA NO LATER THAN 90 DAYS AFTER THIS DECISION BECOMES FINAL. ANY UNPAID AMOUNTS SHALL BE FORWARDED TO THE APPROPRIATE ESCHEAT, UNCLAIMED PROPERTY OR ABANDONED PROPERTY FUND FOR THE STATE IN WHICH THE CUSTOMER LAST RESIDED. BECAUSE IT FOUND THAT BIDDICK CONVERTED AND MISUSED CUSTOMER SECURITIES IN VIOLATION OF NASD RULES 2110 AND 2330, THE NAC DECIDED THAT IT DID NOT NEED TO DECIDE WHETHER BIDDICK CAUSED HIS FIRM TO BE IN VIOLATION OF ITS NET CAPITAL REQUIREMENT. THE BAR IS EFFECTIVE FEBRUARY 24, 2010. DECISION IS FINAL MARCH 29, 2010. BIDDICK APPEALED TO THE SEC ON APRIL 2, 2010. THE SANCTIONS ARE IN EFFECT PENDING THE SEC'S APPROVAL OF THE STAY. THE SEC DENIED THE STAY OF THE BAR ON APRIL 28, 2010. SEC DECISION RENDERED DECEMBER 7, 2010 WHEREIN THE FINDINGS MADE ARE HELD AND THE SANCTIONS IMPOSED BY THE NAC ARE SUSTAINED, THEREFORE BIDDICK IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY, ORDERED TO DISGORGE $38,946.06, PLUS INTEREST, JOINTLY AND SEVERALLY, TO CUSTOMERS, AND ORDERED TO PAY HEARING COSTS OF $2,078.60, JOINTLY AND SEVERALLY. THE BAR IS EFFECTIVE FEBRUARY 24, 2010. DECISION BECAME FINAL FEBRUARY 7, 2011.

BIDDICK IS APPEALING THIS CASE TO THE SECURITIES AND EXCHANGE COMMISSION ON THE GROUNDS THAT THE FINRA HEARING WAS CONDUCTED BY AN UNASHAMED BIASED HEARING OFFICER THAT DISALLOWED THE INTRODUCTION OF VITAL DOCUMENTATION TO BIDDICKS DEFENSE. THE HEARING OFFICER, ALSO DENIED BIDDICK THE OPPORTUNITY TO CALL WITNESSSES IN DEFENSE OF THE MANUFACTURED BASELESS CLAIMS. THE HEARING OFFICER RULED ON ONLY ONE OF THE THREE CLAIMS MADE BY THE DOE BECAUSE THE OTHER TWO CLAIMS WERE GLARINGLY WARRANTLESS, FRIVOLOUS AND WITHOUT MERTI. THE NAC NATURALLY UPHELD THE DECISION OF THE HEARING OFFICER AS THE NAC WAS DENINED THE ABILITY TO VIEW DOCUMENTARY EVIDENCE OR LISTEN TO TESTIMONY FROM BIDDICKS WITNESSES. THE NAC IN SUM RATIFIED THE HEARING OFFICERS BEHAVIOR WITH THE NOTION THAT THE HEARING OFFICER CAN DO ANYTHING HE WISHES, IT'S HIS HEARING. FURTHERMORE, THE HEARING OFFICER CAN ACT WITH IMPUNITY BECAUSE HE HAS NO ACCOUNTABILITY. FINRA ADJUDICATION IS ANYTHING BUT FAIR TO THE CHARGED PARTY. FINRA EXECUTIVE STAFF AT THE HIGHEST LEVELS CONTROL AND MANIPULATE THE HEARING PROCESS TO MEET THEIR SHAMLESS POLITICAL NEEDS AND GOALS. THE FOREGOING MAY BE VERIFIED BY READING THE TRANSCRIPT. FINRA OPENLY AND WITHOUT RECOURSE PRACTICED "LEGAL TORTURE".

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

NASD RULES 1014 AND 2110 - RESPONDENT ACTING ON BEHALF OF HIS MEMBER FIRM, UTILIZED THE INSTRUMENTALITIES OF INTERSTATE COMMERCE TO ENGAGE IN THE SECURITIES BUSINESS WHILE FAILING TO HAVE AND MAINTAIN SUFFICIENT NET CAPITAL.

Acceptance, Waiver & Consent(AWC)

Monetary/Fine

$7,500.00

Censure

WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE HE IS CENSURED AND FINED $7500.00, JOINTLY AND SEVERALLY.

MISSION SECURITIES IS A $5000 BROKER/DEALER. MISSION SECURITIES RECIEVED SECURITIES FROM CLIENTS AND IMMEDIATELY FORWARDED THESE TO ITS CLEARING FIRM FOR DEPOSIT. FIRMS THAT RECIEVE SECURITIES SHALL MAINTAIN NET CAPITAL OF $ 50,000. MISSION WAS UNDER CAPITALIZED BY APPROX. $ 30,000.

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

NASD RULE 2110 - NET CAPITAL VIOLATION - SEC RULE 15C3-1.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, BIDDICK CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE, HE IS FINED $5,000, JOINTLY AND SEVERALLY. FINES PAID ON MAY 30, 2000.

ACTING AS CFO, ENCHARGED WITH ALL RESPONSIBILITIES RELATIVE TO THE MAINTENANCE OF NET CAPITAL FOR A MARKET MAKING MEMBER FIRM (CENTEX), IT WAS DETERMINED THAT THE FIRM WAS MAKING MARKETS FOR NINE CALENDAR DAYS, SEPTEMBER 1, 1999 THROUGH SEPTEMBER 9, 1999, IN VIOLATION OF A TECHNICAL MINIMUM NET CAPITAL REQUIREMENT. IN APRIL 1999, CENTEX ELECTED TO CHANGE CLEARING FIRMS FROM FIRST SOUTHWEST COMPANY (FSW) TO EMMETT A. LARKIN (EAL). DURING THE CHANGE FSW WITHHELD THE TRANSFER OF $205,821.99 WHICH WAS HELD AS A CLEARING DEPOSIT. THE REASON GIVEN BY FSW FOR WITHHOLDING THESE FUNDS WAS TO OFFSET ANY CONTINGENT LIABILITY WHICH FSW FELT MAY OR MAY NOT SURFACE IN THE FUTURE. WITHOUT EITHER WRITTEN OR ORAL NOTIFICATION FSW JOURNALED THE $205,821.99 FROM AN ACCOUNT CONTROLLED BY CENTEX TO AN ACCOUNT CONTROLLED BY FSW ON AUGUST 31, 1999. I WAS MADE AWARE THAT THE $205,821.99 HAD BEEN JOURNALED OUT OF THE CENTEX ACCOUNT ON SEPTEMBER 9, 1999 WHEN THE REQUIRED QUARTERLY ACCOUNT STATEMENT ARRIVED IN THE MAIL. I IMMEDIATELY AFFECTED THE DROPPING OF MARKET MAKING ACTIVITIES FOR CENTEX AND MADE PROPER WRITTEN NOTIFICATION TO THE SECURITIES AND EXCHANGE COMMISSION (SEC) AND THE NATIONAL ASSOCIATION OF SECURITIES DEALERS (NASD) OF THE MARKET MAKING WITHDRAWAL DUE TO NET CAPITAL DEFICIENCIES. AS OF THIS WRITING FSW CONTINUES TO HOLD THE $205,821.00 DEPOSIT. LITIGATION WITH RESPECT TO THE ILLEGAL CONVERSION OF FUNDS IS CURRENTLY UNDERWAY BY CENTEX AGAINST FIRST SOUTHWEST COMPANY.