SECURITIES AND EXCHANGE COMMISSION
Washington D.C.
SECURITIES AND EXCHANGE ACT OF 1934
Rel. No. 48473 / September 10, 2003
Admin. Proc. File No. 3-11001
_________________________________________________________________
In the Matter of the Application of
PACIFIC ON-LINE TRADING & SECURITIES, INC.
and
TIMOTHY ALAN MCADAMS
900 East Hamilton Avenue, #100
Campbell, CA 95008
For Review of Action Taken by the
NASD
_________________________________________________________________
OPINION OF THE COMMISSION
REGISTERED SECURITIES ASSOCIATION -- REVIEW OF DISCIPLINARY PROCEEDING
A member firm and a general securities principal who was, among other
things, the firm's president and chief compliance officer, failed to
file an internet website with NASD as advertising material when the
firm became an NASD member, and the advertising was misleading. ,
association's findings of violation and sanctions imposed are .
APPEARANCES
and for Pacific On-Line Trading & Securities, Inc.
, for NASD.
Appeal filed December 27, 2002
Last brief received March 27, 2003
I.
Pacific On-Line Trading & Securities, Inc. ("Pacific On-Line"), an
NASD member firm functioning as an online trading broker-dealer, and
Timothy A. McAdams, a general securities principal who served as
Pacific On-Line's president, chief executive officer, chief financial
officer, chief operating officer, and chief compliance officer
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE ACT OF 1934
TIMOTHY ALAN MCADAMS
REGISTERED SECURITIES ASSOCIATION -- REVIEW OF DISCIPLINARY PROCEEDING
A member firm and a general securities principal who was, among other things, the firm's
and for Pacific On-Line Trading & Securities,
For these violations, NASD fined the Applicants, jointly and severally, $2,500.
At that time, McAdams incorporated two entities Pacific On-Line, the member firm at issue in
McAdams created a website (the "Original Website") for Pacific On-Line and EDT. McAdams
Pacific On-Line became a branch office of Terra Nova.
On March 22, 1999, shortly before the exit conference concluding the initial examination,
The NASD complaint does not allege a violation based on the website as it appeared in August
Conduct Rule 2210requires any member that has not previously filed advertisements with NASD
The Applicants argue that it was Terra Nova's responsibility to submit the advertisement to
The Applicants contend to us, as they did to NASD, that Pacific On-Line's advertising should
Terra Nova and Putnam settled charges that they maintained the Original Website, with its
We may reduce or lift sanctions imposed by NASD if we find, having due regard for the public
The Applicants contend that the sanctions imposed by NASD are "too severe" in comparison to
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