The NASD has filed charges against Steven W. Norin, a broker with Citigroup Global Markets, and suspended him for 90 days on charges that he participated in a pattern of short sale violations in his personal accounts. In addition he will have to pay a $400,000 fine. In settling with the NASD, Norin neither admitted or denied the charges.
According to the NASD, in 2004, Norin executed 100 short sales in 22 different securities. When he went to sell some of the stock and found there was no available inventory or available stock, he improperly marked them as long in order to defeat the trading system's ability to prevent improper short sales. He made a profit of $298,547.