$4,143.00

Tax

BARRON CHASE SECURITIES, INC.

Voluntary Resignation

FALSIFYING OF RECORDS, PRESELLING THE AFTERMARKET IN A STOCK OFFERING, FAILURE TO EXECUTE A LIMIT ORDER AND PROVIDING FALSE INFORMATION TO THE NASD.

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

03-30-00, SEC RULE 10B-5, NASD RULES 2110, 2120,3110, AND 8210 - CARDIA INTENTIONAL FALSIFIED A PUBLIC CUSTOMER'S ACCOUNT RECORDS BY FALSELY REPRESENTING THAT ANOTHER INDIVIDUAL WAS THE ACCOUNT EXECUTIVE ON THE CUSTOMER'S ACCOUNT AND PROVIDING FALSE TESTIMONY TO THE NASD DURING AN ON-THE-RECORD INTERVIEW. CARDIA ALSO VIOLATED THE ANTIFRAUD PROVISIONS OF THE SECURITIES LAWS BY UTILIZING A TIE-IN ARRANGEMENT IN WHICH THE CUSTOMER HAD TO AGREE TO PURCHASE AFTERMARKET SHARES OF STOCK IN ORDER TO PURCHASE SHARES IN AN INITIAL PUBLIC OFFERING, AND FAILED TO FOLLOW A CUSTOMER?S INSTRUCTION TO SELL A SECURITY. IN ADDITION, THE NASD FOUND THAT CARDIA FALSELY STATED IN A WRITTEN RESPONSE TO AN NASD REQUEST FOR INFORMATION THAT NO CUSTOMER HAD COMPLAINED THAT HE FAILED TO PLACE A SELL LIMIT ORDER.

Decision

Monetary/Fine

$80,000.00

Disgorgement/Restitution

Bar

Suspension

01/12/01GS: BARRED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY AND FINED $50,000 FOR FALSIFYING RECORDS CONCERNING A CUSTOMER'S ACCOUNT AND FOR PROVIDING FALSE INFORMATION TO THE NASD. CARDIA WAS ALSO SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY FOR SIX MONTHS, FINED $30,000 FOR PRE-SELLING THE AFTERMARKET IN A STOCK, AND ORDERED TO PAY $8,637.95, PLUS INTEREST, IN RESTITUTION TO A CUSTOMER FOR FAILING TO EXECUTE A LIMIT ORDER. IF NO FURTHER ACTION, DECISION IS FINAL FEBRUARY 15, 2001. ** 04/30/01GS: ON APRIL 23, 2001, THE APPEALED WAS DISMISSED AS ABANDONED. THEREFORE, THE DECISION IS FINAL FEBRUARY 15, 2001.

NASD REGULATION (E10984442)

NASD REGULATION ALLEGES THAT I FALSIFIED THE BOOKS & RECORDS OF BARRON CHASE BY IMPROPERLY USING ROBERT LOUIS' REP NUMBER. THEY ALSO ALLEGED THAT I GAVE FALSE & MISLEADING TESTIMONY CONCERNING A DIFFRENT MATTER THAT I FAILED TO EXECUTE A TRADE IN HIS ACCOUNT. THEY ALSO ALLEGED THAT I REQUIRED MR. ABLES A CLIENT TO PURCHASE HOST AMERICA IN THE AFTER MARKET AS A CONDITION OF PATICIPATING IN THE IPO.

FAILURE TO EXECUTE A TRADE WHILE EMPLOYED AT WORTHINGTON CAPITAL.

MR. FEURER MAY PURCHASE 200 SHARES OF US AIR @ 40 9/16 ON MARGIN FROM WORTHINGTON CAPITAL. ON 9-26-97 I PURCHASED 200 SHARES OF US AIR FOR MARTIN FEUER @ 40 9/16 IN AND INDIVIDUAL ACCOUNT. MR FEUER RECEIVED THE PURCHASE AND SENT BACK A TRUST CHECK. I TOLD HIM HE WOULD NEED AN INDIVIDUAL CHECK OR SENT IN TRUST PAPERS. I SENT AN AIRBORNE PACKAGE AND TOLD HIM TO RETURN IT BY OCT 3RD OR THE TRADE WOULD BE CANCELLED. HE DIDN'T RETURN THE TRUST PAPERWORK UNTIL OCT 10TH AT WHICH THE TRADE HAD ALREADY BEEN CANCELLED.