Capstone Companies Inc (CAPC)

[flptrnkng]

I just read that article

To me it seems to imply that FBR got in trouble for short selling before the PIPE became public knowledge.

CHDT has filed a Form D, it's public knowledge.

NASD found that in September 2001, Compudyne Corporation and FBR, its placement agent, offered accredited investors - on a confidential basis - a PIPE deal proposing to sell 2.45 million shares of common stock, which raised more than $29 million. The restricted stock was offered at the below-market price of $12 per share. NASD found that FBR failed to maintain an information barrier to prevent trading by FBR personnel who were aware of this information.

As part of efforts to make a market in Compudyne, supply liquidity, and advertise FBR's capabilities, FBR's head trader, who was aware of material, nonpublic information about the PIPE, engaged in trading in Compudyne before the PIPE was announced to the public. By the time the PIPE was announced on Oct. 9, 2001, FBR had a net short position of approximately 179,495 shares.

Do you have any links re: NASD/SEC PIPE rules, especially recently updated ones?

Regards