Enforcement Actions
Financial Industry Regulatory Authority (FINRA)
CASES OF NOTE
2011
NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.
January 2011
Legacy Trading Co., LLC and Mark Alan Uselton (Principal)
2005000879302/January 2011

The NAC imposed the sanctions following appeal of an OHO decision.

The sanctions were based on findings that acting through Uselton, the Firm

  • made false statements to FINRA; and
  • failed to make and annotate affirmative determinations prior to effecting short sales.

The firm and Uselton

  • failed to maintain the required records necessary to rely upon the exemption in Exchange Act Rule 15c2-11(f)(2),
  • failed to maintain the firmís email records for at least three years, and
  • failed to establish, maintain, and enforce an adequate supervisory system and written supervisory procedures,

Uselton also provided false information and failed to provide testimony at a FINRA on-the-record interview, and he failed to timely update his Uniform Application for Securities Industry Registration or Transfer (Form U4) with material facts.

Legacy Trading Co., LLC: Expelled;  jointly and severally fined $907,035.01, plus interest.

Mark Alan Uselton: Barred; jointly and severally fined $907,035.01, plus interest.

Tags:  affirmative determination    Email     |    In: U4, U5, RE-3, Rule 3070
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