NASD said on Monday that it has charged Scott W. Ryan and his firm, Ryan & Company, with engaging in an impermissible short-selling scheme on behalf of three hedge fund clients.

In June 2004, Ryan, a Bryn Mawr, Pa. resident, was barred from the securities industry and RYCO, headquartered in West Conshohocken, Pa., was expelled by an NASD hearing panel for failing to cooperate in the investigation that led to the charges. However, the decision was appealed to NASD's national adjudicatory council, prompting Ryan's bar and RYCO's expulsion to be stayed until the outcome of the appeal.

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