Falcon Trading Group, Inc. (CRD #30361, Boca Raton, Florida), Sovereign Equity Management Corp. (CRD #20016, Deerfield Beach, Florida), and Glen Thomas Vittor (CRD #1565323, Registered Principal, Deerfield Beach, Florida) were fined $1 million, jointly and severally. In addition, the firms were expelled from NASD membership and Vittor was barred from association with any NASD member in any capacity. The sanctions were based on findings that the respondents effected short sales for the firms' own accounts and failed to make an affirmative determination that the firms could borrow the securities or otherwise provide for delivery of the securities by the settlement date. The findings also stated that the respondents, in cooperation with others, attempted to obtain stock at below-market prices through the use of threats and coercion, and that, through naked short sales and extortion, the respondents participated in a manipulation of the market for those securities. (NASD Case #CAF980002)
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