SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
SECURITIES EXCHANGE ACT OF 1934
Rel. No. 40663 / November 12, 1998
Admin. Proc. File No. 3-9389
:
In the Matter of the Application of :
:
SHAMROCK PARTNERS, LTD. :
111 Veterans Square :
Media, Pennsylvania 19063 :
:
and :
:
JAMES T. KELLY :
:
For Review of Disciplinary Action Taken by the :
:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. :
:
OPINION OF THE COMMISSION
REGISTERED SECURITIES ASSOCIATION -- REVIEW OF DISCIPLINARY
PROCEEDINGS
Violations of Rules of Fair Practice
Member firm of registered securities association and its
president and general securities principal charged excessive
markdowns in purchasing securities from a retail customer.
Held, association's findings of violation and the sanctions
it imposed sustained in part and modified in part.
APPEARANCES:
Harley W. Shaver, Shaver & Licht, for Shamrock Partners,
Ltd. and James T. Kelly.
Alden Adkins, Norman Sue, Jr., and Francine Norz Tobin for
NASD Regulation, Inc.
Appeal Filed: September 3, 1997
Last Brief Filed: December 11, 1997
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
REGISTERED SECURITIES ASSOCIATION -- REVIEW OF DISCIPLINARY PROCEEDINGS
markdowns in purchasing securities from a retail customer.
association's findings of violation and the sanctions
Alden Adkins, Norman Sue, Jr., and Francine Norz Tobin for NASD Regulation, Inc.
Shamrock Partners, Ltd., a member of the National Association of Securities Dealers, Inc. and
The NASD found that Shamrock and Kelly violated Article III, Sections 1 and 4 of the NASD
by effecting, in a principal capacity, five purchases of Stylex Homes, Inc. common stock from
In October 1992, Robert C. Hackney and Ron Hayes, Sr., who were both promoters of Stylex,
Art Ring, manager of the Florida branch, referred Hackney and Hayes Sr.
Hackney informed Kelly that Merrill Lynch had quoted him a price of $.75 per share, less $.07
with you on this and future transactions.
Between November 4 and November 11, 1992, Shamrock made four additional purchases of Stylex
Rule 2440 requires NASD member firms to buy or sell securities at a price that is fair,
Nevertheless, applicants contend that Shamrock was an "unpublished" market maker in Stylex
Section 3of the Securities Exchange Act of 1934,
Kelly claims that he told certain dealers that Shamrock was a market maker in Stylex.
Specifically, Shamrock and Kelly claim that, while the NASD collected "blue sheet"
Shamrock and Kelly challenge that part of the sanction requiring that they pay restitution.
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