Fed. Sec. L. Rep. P 99,686 Kenneth A. Carter v. Securities and Exchange Commission, Mario T. Ribeiro v. Securities and Exchange Commission

Kenneth A. Carter and Mario T. Ribeiro, formerly registered representatives of the San Diego branch office of Independent Securities Corporation (ISC), seek to set aside an opinion and order of the Securities and Exchange Commission affirming disciplinary action by the National Association of Securities Dealers, Inc. (NASD). The Commission found that Carter and Ribeiro had violated Section 5 of the Securities Act of 1933, 15 U.S.C. § 77e, by selling securities without complying with the registration requirements of that Act. The Commission also found that Carter and Ribeiro had violated Article III, Section 1 of the NASD Rules of Fair Practice, NASD Manual (CCH) para. 2151, by failing to provide their employer with prior written notification of unauthorized, • private sales. The Commission affirmed the sanctions imposed on Carter and Ribeiro for these violations by the Board of Governors of the NASD, including censure, fines of $2,500 and $10,-000 respectively, and costs of $275.70 assessed against Carter. We affirm the decision of the Commission.

A reviewing court “cannot overturn the Commission’s findings of fact unless convinced that they are not supported by substantial…