The NASD has suspended Steven Norin, a broker for Citigroup Global Markets for 90 days and ordered him to pay $400,000 to settle charges that he had engaged in improper short sales in his personal accounts. The NASD charged that over a period of 20 months in 2003 and 2004, Norin executed 100 short sales in 22 different securities – but marked them “long.” The NASD found that the broker did this because he felt certain securities in his personal account were overpriced, and wanted to circumvent the system that would have prevented improper short sales by labeling it long. According to the NASD, Norin made nearly $300,000 from 70 of the sales and lost about $2,800 in the others. The payment includes disgorgement and a $100,000 fine.
