Claimants allege negligence and breach of fiduciary duties exposing claimants to substantial losses

$650,000.00

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

NASD CONDUCT RULE 2110 AND 3030 - RESPONDENT ENGAGED IN OUTSIDE BUSINESS ACTIVITIES BY REFERRING CLIENTS TO ANOTHER FIRM FOR INVESTMENT ADVISORY SERVICES IN EXCHANGE FOR A REFERRAL FEE WITHOUT PROMPT WRITTEN NOTICE TO HIS MEMBER FIRM.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

Suspension

WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE RESPONDENT SRI HARAN CONSENTED TO THE FINDING OF THE ALLEGATIONS AND TO THE FOLLOWING SANCTIONS: FINED $5,000 AND SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER FIRM IN ANY CAPACITY FOR 10 BUSINESS DAYS. THE SUSPENSION WILL COMMENCE WITH THE OPENING OF BUSINESS ON JUNE 16, 2003, AND WILL CONCLUDE AT THE CLOSE OF BUSINESS ON JUNE 27, 2003. FINES PAID ON JUNE 26, 2003.

I REFERRED CLIENTS TO NEW CENTURY ASSET MANAGEMENT, AN INVESTMENT ADVISORY FIRM, AND RECEIVED A REFERRAL FEE BUT FAILED TO PROVIDE PROMPT WRITTEN NOTICE OF THAT ACTIVITY TO MY MEMBER FIRM. ON MAY 23, 2003 WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, I CONSENTED TO THE FINDING FO THE ALLEGATIONS AND TO THE FOLLOWING SANCTIONS: FINED $5,000 AND SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER FIRM IN ANY CAPACITY FOR 10 BUSINESS DAYS. THE SUSPENSION WILL COMMENCE WITH THE OPENING OF BUSINESS ON JUNE 16, 2003 AND WILL CONCLUDE AT THE CLOSE OF BUSINESS ON JUNE 27, 3003.