FINRA

FINRA RULES 2010, 8210, NASD RULE 2420: A MEMBER FIRM PAID NESBIT MORE THAN $69,000 IN COMMISSIONS, FEES, AND OVERRIDES DERIVED FROM SECURITIES TRANSACTIONS, INCLUDING COMMISSIONS ON SEVERAL VARIABLE ANNUITY EXCHANGES. THE PAYMENTS INCLUDED COMMISSIONS THAT NESBIT RECEIVED FROM THE SALE OF SECURITIES TO THE FORMER CUSTOMERS OF AN INDIVIDUAL THAT HAD BEEN PERMANENTLY BARRED BY FINRA, AND OVERRIDES THAT NESBIT RECEIVED FROM SALES OF SECURITIES BY OTHER REGISTERED REPRESENTATIVES IN HIS BRANCH OFFICE. NESBIT PAID $65,500 OF THE COMMISSIONS AND OVERRIDES THAT HE RECEIVED FROM HIS FIRM TO THE BARRED INDIVIDUAL. NESBIT DID SO BY TRANSFERRING THE COMMISSIONS HE RECEIVED FROM HIS FIRM TO THE ACCOUNT OF A COMPANY HE OWNED AND CONTROLLED. NESBIT THEN WROTE CHECKS FROM THAT ACCOUNT PAYABLE TO A COMPANY OWNED BY THE BARRED INDIVIDUAL. BY DIRECTING COMMISSIONS AND OVERRIDES DERIVED FROM SECURITIES TRANSACTIONS TO AN ENTITY THE BARRED INDIVIDUAL OWNED AND CONTROLLED, NESBIT MATERIALLY ASSISTED THE BARRED INDIVIDUAL IN CIRCUMVENTING THE BAR IMPOSED BY FINRA. IN ADDITION, NESBIT FAILED TO PROVIDE FINRA WITH REQUESTED INFORMATION AND DOCUMENTS AND FAILED TO APPEAR FOR TESTIMONY.

Decision

Bar (Permanent)

All Capacities

4/17/2012

DEFAULT DECISION RENDERED MARCH 20, 2012 WHEREIN NESBIT IS BARRED FOR SHARING COMMISSIONS WITH AN UNREGISTERED INDIVIDUAL WHO HAD BEEN BARRED BY FINRA, IN VIOLATION OF NASD RULE 2420 AND FINRA RULE 2010. NESBIT IS ALSO BARRED FOR FAILURE TO PROVIDE DOCUMENTS AND INFORMATION, AND FAILURE TO APPEAR AT AN ON-THE-RECORD INTERVIEW, IN VIOLATION OF FINRA RULES 8210 AND 2010. NESBIT SHARED COMMISSIONS WITH AN UNREGISTERED INDIVIDUAL WHO HAD BEEN BARRED BY FINRA. NESBIT FAILED TO PROVIDE DOCUMENTS AND INFORMATION TO FINRA, AND FAILED TO APPEAR AT AN ON-THE-RECORD INTERVIEW AS REQUESTED BY FINRA. AFTER A REGISTERED REPRESENTATIVE WAS BARRED BY FINRA, SOME OF HIS CUSTOMER'S ACCOUNTS AT THEIR MEMBER FIRM WERE REASSIGNED TO NESBIT. THE FIRM PAID NESBIT MORE THAN $69,000 IN COMMISSIONS, FEES, AND OVERRIDES DERIVED FROM SECURITIES TRANSACTIONS, INCLUDING COMMISSIONS ON SEVERAL VARIABLE ANNUITY EXCHANGES. THE PAYMENTS INCLUDED COMMISSIONS THAT NESBIT RECEIVED FROM THE SALE OF SECURITIES TO THE BARRED REPRESENTATIVE'S FORMER CUSTOMERS AFTER HE WAS BARRED, AND OVERRIDES THAT NESBIT RECEIVED FROM SALES OF SECURITIES BY OTHER REGISTERED REPRESENTATIVES IN HIS BRANCH OFFICE. NESBIT PAID $65,500 OF THE COMMISSIONS AND OVERRIDES THAT HE RECEIVED FROM HIS FIRM TO THE BARRED REPRESENTATIVE. NESBIT DID SO BY TRANSFERRING THE COMMISSIONS HE RECEIVED FROM HIS FIRM TO THE ACCOUNT OF A COMPANY HE OWNED AND CONTROLLED. NESBIT THEN WROTE CHECKS FROM THAT ACCOUNT PAYABLE TO THE BARRED INDIVIDUAL'S COMPANY. NESBIT, BY DIRECTING COMMISSIONS AND OVERRIDES DERIVED FROM SECURITIES TRANSACTIONS TO A NON-FINRA MEMBER THAT A FINRA BARRED REPRESENTATIVE OWNED AND CONTROLLED, MADE IMPROPER PAYMENTS OF COMMISSIONS DERIVED FROM SECURITIES TRANSACTIONS TO AN UNREGISTERED PERSON AND THE PERSON'S UNREGISTERED ENTITY. BY DIRECTING COMMISSIONS AND OVERRIDES DERIVED FROM SECURITIES TRANSACTIONS TO AN ENTITY THE BARRED REPRESENTATIVE OWNED AND CONTROLLED, NESBIT MATERIALLY ASSISTED HIM IN CIRCUMVENTING THE BAR IMPOSED BY FINRA. DECISION BECAME FINAL APRIL 17, 2012.