NEXT FINANCIAL GROUP INC.

Discharged

UNAUTHORIZED USE OF EMAIL TO COMMUNICATE WITH INVESTMENT CLIENTS

NYSE DIVISION OF ENFORCEMENT

**8/13/2001**DURING THE PERIOD FROM APPROXIMATELY APRIL 1994 THROUGH NOVEMBER 1997, BOUTOTE:CHARGES: DURING THE PERIOD FROM APPROXIMATELY APRIL 1994 THROUGH NOVEMBER 1997, BOUTOTE:1.ENGAGED IN CONDUCT INCONSISTENT WITH JUST AND EQUITABLE PRINCIPLES OF TRADE BY,ON ONE OR MORE OCCASIONS: (A) IMPROPERLY EFFECTING, INITIATING, EXECUTING OR CAUSING TO BE EXECUTED AN ORDER WHILE ON THE FLOOR OF THE EXCHANGE FOR AN ACCOUNT IN WHICH HE HAD AN INTEREST; (B) USING HIS POSITION ON THE FLOOR TO ACCORD PREFERENTIAL TREATMENT TO SUCH ACCOUNT; AND/OR (C) GENERALLY BEING VESTED WITH, AND EXERCISING, INVESTMENT DISCRETION OVER SUCH ACCOUNT.2. ENGAGED IN ACTS DETRIMENTAL TO THE INTEREST OR WELFARE OF THE EXCHANGE BY, ON ONE OR MORE OCCASIONS: (A) IMPROPERLY EFFECTING, INITIATING, EXECUTING OR CAUSING TO BE EXECUTED AN ORDER WHILE ON THE FLOOR OF THE EXCHANGE FOR AN ACCOUNT IN WHICH HE HAD AN INTEREST; (B) USING HIS POSITION ON THE FLOOR TO ACCORD PREFERENTIAL TREATMENT TO SUCH ACCOUNT; AND/OR (C) GENERALLY BEING VESTED WITH, AND EXERCISING, INVESTMENT DISCRETION OVER SUCH ACCOUNT.3.VIOLATED SECTION 11(A)(1) OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND REGULATION 240.11A-1 PROMULGATED THEREUNDER, BY, ON ONE OR MORE OCCASIONS, EFFECTING OR INITIATING AN ORDER WHILE ON THE FLOOR OF THE EXCHANGE FOR AN ACCOUNT IN WHICH HE HAD AN INTEREST AND/OR FOR AN ACCOUNT OVER WHICH HE EXERCISED INVESTMENT DISCRETION.4. VIOLATED EXCHANGE RULE 90(A) BY, ON ONE OR MORE OCCASIONS, EFFECTING A TRANSACTION WHILE ON THE FLOOR OF THE EXCHANGE FOR HIS OWN ACCOUNT AND/OR FOR AN ACCOUNT OVER WHICH HE EXERCISED INVESTMENT DISCRETION.5. VIOLATED EXCHANGE RULES 92(A) AND (B) BY, ON ONE OR MORE OCCASIONS, PURCHASING A SECURITY FOR AN ACCOUNT IN WHICH HE WAS DIRECTLY OR INDIRECTLY INTERESTED WHILE HOLDING AN UNEXECUTED MARKET ORDER OR LIMIT ORDER TO BUY SUCH SECURITY FOR A CUSTOMER;**CONTINUED AT #13**

Decision

Censure

**9/18/2002**HEARING PANEL DECISION 02-153 DECISION: VIOLATED RULE 350 BY COMPENSATING A FLOOR EMPLOYEE OF ANOTHER MEMBER ORGANIZATION WITHOUT THE PRIOR WRITTEN CONSENT OF THAT MEMBER ORGANIZATION AND THE EXCHANGE -- CENSURE.

ALTHOUGH DETERMINING THAT A VIOLATION OF NYSE RULE 350 EXISTED, FOR COMPENSATING A FLOOR EMPLOYEE OF ANOTHER MEMBER ORGANIZATION IN EXCESS OF $200.00 PER YEAR FOR SERVICES RENDERED, WITHOUT THE PRIOR WRITTEN CONSENT OF THAT OTHER MEMBER ORGANIZATION AND THE EXCHANGE, THE UNANIMOUS HEARING PANEL EXPRESSLY NOTED THAT SUCH OTHER MEMBER ORGANIZATION WAS AWARE OF THE ARRANGEMENT AND THAT MR. BOUTOTE HAD RECEIVED ORAL PERMISSION FROM SUCH EMPLOYER TO COMPENSATE SUCH EMPLOYEE. MR. BOUTOTE WAS UNAWARE AT THE TIME ANY FURTHER CONSENT WAS REQUIRED BEYOND THE ORAL CONSENT OF SUCH EMPLOYER. IT SHOULD BE NOTED THAT ALL OTHER CHARGES IN THIS HEARING WERE UNANIMOUSLY DISMISSED.