NASD

SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5 PROMULGATED THEREUNDER, NASD CONDUCT RULE 2110, 2120, 2310, AND IM 2310-2 - RESPONDENT CHARLES P. CELESTIN, ON BEHALF OF HIS MEMBER FIRM, USED AND EMPLOYED DECEPTIVE, FRAUDULENT, AND MANIPULATIVE DEVICES AND CONTRIVANCES INVOLVING THE SOLICITATION, PURCHASE, AND SALE OF THE COMMON STOCK OF TWO HIGHLY SPECULATIVE OTC EQUITY SECURITIES, TO UNSUSPECTING CUSTOMERS OF HIS MEMBER FIRM. IN DOING SO, RESPONDENT ENGAGED IN A VARIETY OF FRAUDULENT AND DECEPTIVE SALES PRACTICES AND DISREGARDED HIS DUTIES AND OBLIGATIONS OF FAIR DEALING TO THEIR CUSTOMERS. THE FIRM UNDER THE DIRECTION OF AN INDIVIDUAL BECAME A "BOILER ROOM" THAT SOLD COMMON STOCK THROUGH AN AGGRESSIVE COLD-CALLING CAMPAIGN THAT INVOLVED, AMONG OTHER THINGS, HIGH-PRESSURE SALES TACTICS, MISREPRESENTATIONS AND OMISSIONS OF MATERIAL FACTS, BASELESS PERFORMANCE AND PRICE PREDICTIONS, UNAUTHORIZED AND UNSUITABLE PURCHASES, AND AN UNDISCLOSED NO NET-SELLING PRACTICE, ALL OF WHICH WERE PART OF AN UNLAWFUL SCHEME DESIGNED TO INDUCE UNSUSPECTING CUSTOMERS TO PURCHASE AND HOLD THE SECURITIES. BY EARLY SEPTEMBER 2002, THE CUSTOMERS HAD REALIZED LOSSES OF MORE THAN $1.1 MILLION. IN ADDITION, CUSTOMERS STILL HELD MORE THAN 647,000 SHARES OF A CERTAIN STOCK AT AN APPROXIMATE COSTS OF $4 MILLION, AND MORE THAN 211,000 SHARES OF A CERTAIN STOCK AT AN APPROXIMATE COST OF $1.5 MILLION. DURING SEPTEMBER 2002, AS THE BOILER ROOM OPERATION AT THE FIRM WAS DISMANTLED, THE PRICES OF THE STOCKS PLUMMETED, LEAVING THE CUSTOMERS WHO STILL HELD THE STOCKS WITH SUBSTANTIAL UNREALIZED LOSSES, ESTIMATED TO EXCEED $3.5 MILLION.

Decision

Bar

DEFAULT DECISION RENDERED AUGUST 30, 2005 WHEREIN, CHARLES P. CELESTIN IS BARRED FROM ASSOCIATING WITH ANY NASD MEMBER FIRM IN ANY CAPACITY, FOR ENGAGING IN FRAUDULENT SALES PRACTICES, IN VIOLATION OF SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND SEC RULE 10B-5 THEREUNDER, AND NASD CONDUCT RULES 2110, 2120, 2310, AND IM-2310-2. IN LIGHT OF THE BAR, NO FINE WILL BE IMPOSED. THE DECISION IS FINAL SEPTEMBER 27, 2005.