David Brian Elliott (CRD #2814225, Registered Representative, Delta, British Columbia, Canada) submitted a Letter of Acceptance, Waiver and Consent in which the firm and Girling were censured. The firm was fined $50,000, $15,000 of which is joint and several with Elliott, $15,000 is joint and several with Shepherd and $10,000 is joint and several with Girling. Elliott and Shepherd were suspended from association with any NASD member in any capacity for 10 business days. Without admitting or denying the findings, the respondents consented to the described sanctions and to the entry of findings that Elliot, Shepherd and Griling knew that an individual was an associated person of another member firm, had a financial interest in an account opened at Haywood Securities and failed to inform his employer that he would exercise discretionary authority over the account. The findings stated that prior to executing transactions for this customer’s account, the firm, acting through Elliott, Shepherd and Girling, did not notify the individual’s member firm, in writing or otherwise, of its intention to open the account, nor did it notify the individual of its intention to provide notice to his member firm.

Elliott’s suspension in any capacity was in effect from December 18, 2006, through January 2, 2007. Shepherd’s suspension in any capacity was in effect from December 18, 2006, through January 2, 2007. (NASD Case #E3B2004021901)