NASD Appeals SEC Ruling on Brokerage

NASD is appealing a Securities and Exchange Commission’s decision to set aside an NASD disciplinary ruling against brokerage firm owner Anthony Elgindy.

NASD had found that the San Diego-based Elgindy and his Key West Securities Inc. attempted to manipulate the market for Saf T Lock stock in 1997. NASD in 2003 barred Elgindy from having an association with any NASD firm, expelled Key West and fined Elgindy and his firm $51,000.

Elgindy appealed NASD’s decision to the SEC, which in March dismissed most of the findings -- overturning Elgindy’s ban, his firm’s expulsion and ordering that $50,000 of the original $51,000 fine be dismissed.

NASD filed a petition last week that asked a U.S. District Court of Appeal to review the SEC’s March 10 order.

A controversial short seller, Elgindy is in jail awaiting trial on criminal charges of securities fraud and racketeering. He was recently arrested at a New York airport attempting to board a plane with fake identification.

NASD, formerly the National Assn. of Securities Dealers, oversees broker dealers.