Ronald G. SORRELL, Petitioner, v. SECURITIES AND EXCHANGE COMMISSION, Respondent

Sorrell petitions us to reverse sanctions imposed upon him by the National Association of Securities Dealers (NASD), and affirmed but reduced by the Securities and Exchange Commission. We must determine whether the record offers adequate support for the conclusions of the SEC.

The NASD charged Sorrell with selling unregistered securities and failing to notify his employer, Cochrane & Co., of such sales. Cochrane & Co. and its president, Edward Cochrane, were charged with failing adequately to supervise Sorrell. The NASD District Business Committee held a hearing on the charges against Sorrell in Hawaii. The charges against Cochrane & Co. and Edward Cochrane were heard in California. The Committee found Sorrell guilty of both charges but dismissed the charges against Cochrane & Co. and Edward Cochrane.

The Committee fined Sorrell $6,000 and suspended him from practice as a principal for one year. The NASD Board of Governors affirmed the findings of the Committee and approved the sanction. Sorrell appealed to the SEC.

The SEC agreed that Sorrell sold unregistered securities but found insufficient evidence to support the charge that he failed to notify his employer of the sales.…