UBSS busted and fined for naked short selling and intentionally mismarking trades as long when they were shorting.
Sigh... My understanding, from what I've read about the UBS case, is that the stocks being shorted were not penny stocks. In addition, FINRA reported that they could find no cases of failures to deliver.
Further, it's clear what they were doing: they were allowing clients to short before they'd nailed down a borrow. That used to be a normal practice before the SEC decided to get tough on NSS.
They broke the current rules; that's why they were fined. Was it a Great Big Deal? No.
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