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.