NATIONAL ASSOICATION OF SECURITIES DEALERS, INC.

************NASD REGISTRATION REVOKED ON 3/17/93************ ************FOR NON-PAYMENT OF FINES AND/OR COSTS*********** ************IN NASD COMPLAINT #C07920007.******************* *03-01-99, NASD REVOCATION OF REGISTRATION LIFTED 02/26/99***** *******OFFER OF SETTLEMENT ISSUED 2/2/99 RESOLVING SOME ISSUES* **IN NASD COMPLAINT NO. C07920007. FINE REDUCED TO $2500.****** *******2/10/99, CHECK RECEIVED FOR $6,547.81 REPRESENTING****** *******PAYMENT FOR FINES/COSTS IN NASD COMPLAINTS************** **************C07920007 & C3A900009****************************

Other

Revocation/Expulsion/Denial

RNP

02-04-00, REVOKED FOR NONPAYMENT OF FINES AND/OR COSTS

IN NASD COMPLAINT NO. 207920007 FINE REDUCED TO 2500.00 AND PAID.

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

[TOP] COMPLAINT NO. C07920007 FILED 6/2/92 BY DISTRICT NO. 7 AGAINST MLB INVESTMENTS, INC., KENNETH L. LUCAS, FRED A. BORRIES, JR., JAMES W. MAGNER AND CHARLES W. DAY, JR. ALLEGING VIOLATIONS OF ARTICLE III, SECTIONS 1, 4, 18 AND 27 OF THE RULES OF FAIR PRACTICE IN THAT RESPONDENT MEMBER, ACTING THROUGH MAGNER, BORRIES AND DAY, DOMINATED AND CONTROLLED THE MARKET FOR AN OTC NON-NASDAQ CORPORATE SECURITY AND EFFECTED TRANSACTIONS IN THE SECURITY AT PRICES WHICH WERE NOT REASONABLY RELATED TO THE PREVAILING MARKET PRICE; INDUCED OTHERS TO ENGAGED IN DECEPTIVE AND FRAUDULENT DEVICES AND CONTRIVANCES; CHARGED MARK-UPS RANGING FROM OVER 45 TO 130 PERCENT ABOVE THE PREVAILING MARKET PRICE IN PRINCIPAL SALES OF THE SAME COMMON STOCK; LUCAS AND BORRIES FAILED TO PROPERLY SUPERVISE THE ACTIVITIES OF RESPONDENT MEMBER'S ASSOCIATED PERSONS INCLUDING BORRIES, ET AL. DECISION RENDERED 10/27/92, WHEREIN BORRIES IS CENSURED, FINED $10,000, SUSPENDED FROM ASSOCIATION WITH ANY MEMBER OF THE NASD IN ANY CAPACITY FOR 30 DAYS, SUSPENDED FROM ASSOCIATION WITH ANY MEMBER OF THE NASD IN ANY PRINCIPAL CAPACITY FOR ONE YEAR AND REQUIRED TO REQUALIFY BY EXAMINATION AS A GENERAL SECURITIES PRINCIPAL PRIOR TO FUNCTIONING IN SUCH CAPACITY. 12/11/92 - DECISION IS FINAL. PRESS RELEASE 2/93: THE SUSPENSION WILL COMMENCE 2/16/93 AND THE SUSPENSION IN ANY CAPACITY WILL CONCLUDE 3/17/93. THE SUSPENSION IN ANY PRINCIPAL CAPACITY WILL CONCLUDE 2/16/94. ***1/22/93 S/D DESK NOTIFIED*** **REVOKED FOR NON-PAYMENT OF FINES AND/OR COSTS ON 3/17/93** 3-1-99, ON 2/2/99 AN OFFER OF SETTLEMENT WAS ISSUED IN ORDER TO RESOLVE SOME ISSUES. FINE WAS REDUCED FROM $10,000 TO $2,500. ON 2/10/99, $2,500 PAID.

Decision

Censure

Suspension

REQUALIFY-PRINCIPAL

SUSPENDED IN ALL CAPACITIES-30 DAYS SUSPENDED IN PRINCIPAL CAPACITY-ONE YEAR

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

[TOP] COMPLAINT NUMBER DEN-968 (DISTRICT NO. 3) FILED 7/17/90 AGAINST BLINDER, ROBINSON & CO., INC., M. DEAN ARKEMA, FRED A. BORRIES, JR. AND LARRY P. BLINDER ALLEGING VIOLATIONS OF ARTICLE III, SECTIONS 1 AND 19 OF THE RULES OF FAIR PRACTICE IN THAT RESPONDENT MEMBER, AND BORRIES, FAILED TO SEND TELEGRAPHIC NOTICE OF THE UNDERDEPOSIT IN THE CUSTOMER RESERVE ACCOUNT; REQUIRED SECURITIES IN ITS POSSESSION AND CONTROL. DECISION RENDERED 5/13/91, C3A900009 (DEN-968) WHEREIN IS CENSURED, FINED $2,500 AND ASSESSED COSTS OF $545. 5/28/91 - APPEALED TO THE BOARD OF GOVERNORS BY BORRIES AND ARKEMA. DECISION RENDERED 1/22/92; FINDINGS MADE AND SANCTIONS IMPOSED AGAINST BORRIES AND ARKEMA ARE AFFIRMED. IN ADDITION, THE RESPONDENTS ARE ASSESSED APPEAL COSTS OF $1,002.81, JOINTLY AND SEVERALLY. 2/14/92 - APPEALED TO THE SEC BY BORRIES. 11/30/92 SEC NEWS DIGEST, ISSUE 92-226, THE SEC HAS AFFIRMED THE NASD'S FINDING THAT BORRIES, A FORMER COMPLIANCE OFFICER FOR BLINDER, ROBINSON VIOLATED CUSTOMER PROTECTION PROVISIONS BY FAILING TO SEND A NOTICE TO REPORT THAT, ON 8/29/88, THE FIRM HAD INADEQUATE FUNDS IN ITS SPECIAL RESERVE ACCOUNT FOR THE BENEFIT OF CUSTOMERS. NASD POINTED THIS OUT IN 9/88, TO BORRIES AND TOLD HIM TO SEND THE REQUIRED NOTICE WHICH HE IMPROPERLY REFUSED TO DO, UNDER THE MISTAKEN BELIEF THAT THERE HAD BEEN NO DEFICIENCY. THE NASD'S DISTRICT COMMITTEE CENSURED BORRIES AND FINED HIM $2,500. BORRIES THEN APPEALED TO THE NBCC WHICH STATED IT WOULD BOTH REDUCE AND AFFIRM THE SANCTIONS. IN VIEW OF THIS INCONSISTENCY, THE SEC REMANDED THE PROCEEDINGS TO NASD FOR CLARIFICATION. (REL. 34-31461) NBCC REMAND DECISION RENDERED 2/16/93 AFFIRMED THE SANCTIONS AND STATED THAT ANY REFERENCE IN THE DECISION TO THE CONTRARY WAS AN ERROR. 3/18/93 - DECISION IS FINAL. SEC DECISION RENDERED 9/14/93 AFFIRMED THE FINDINGS MADE AND SANCTIONS IMPOSED AGAINST BORRIES. DECISION IS FINAL 11/15/93. ***3-1-99, $4,047.81 PAID.

Decision

Censure

COSTS-$545

FINED