THE MARYLAND SURVEY: 1996-1997: Recent Decisions: The United States Court of Appeals for the Fourth Circuit Skip over navigation
LexisNexis® Browse Law Reviews and Treatises
Skip over navigation
Sign in with your lexis.com® ID to access the full text of this article.
-OR-
Order the full text of this article if you do not have a lexis.com® ID.
 
Price: 
US $22.00 (+ tax)
 
 

Copyright (c) 1998 University of Maryland School of Law
Maryland Law Review

THE MARYLAND SURVEY: 1996-1997: Recent Decisions: The United States Court of Appeals for the Fourth Circuit

1998

57 Md. L. Rev. 1256

Author

Robert F. Bahrampour

Excerpt



VI. Securities Law

A. Affirming the Unique and Complementary Roles of the NASD and SEC
 
In Jones v. SEC, 1 the Fourth Circuit considered for the first time whether disciplinary action by the National Association of Securities Dealers (NASD) has a preclusive effect on similar proceedings brought by the Securities and Exchange Commission (SEC or Commission). 2 The court held that principles of res judicata, the Maloney Act of 1938, 3 and the Double Jeopardy Clause of the Fifth Amendment 4 did not bar the SEC from initiating its own action subsequent to an NASD disciplinary action. 5 In so ruling, the court legitimized the SEC's unique ability to review NASD actions 6 and to begin its own investigation following an NASD sanction. 7 Although the Fourth Circuit's decision rested on well-grounded legal principles, the court left open the question whether monetary penalties imposed by both the NASD and the SEC constitute multiple punishments in violation of the Double Jeopardy Clause.

1. The Case. - In 1989, Ivan D. Jones, Jr., a stockbroker, became director of a registered broker-dealer, Jones & Ward Securities, Inc. (Jones & Ward). 8 Soon thereafter, Jones notified the NASD that he had assumed all management responsibilities of the firm as president and "control person." 9 The year before, Jones and two other owners of Trask, Hunt, Hunt, Jones, Ltd. (THHJ) formed Sidbury Land Company (Sidbury), which issued stock in order to raise money for a recent acquisition of land by THHJ. ...
 
 
If you are interested in obtaining a lexis.com® ID and Password, please contact us at 1-(800)-227-4908 or visit us at http://www.lexisnexis.com/.
Search Documents
 
eg., Environmental Insurance Coverage Under the Comprehensive General Liability Policy
 
 
 
 

Lexis® Web - The only search engine that delivers free web content specifically from legal sites validated by LexisNexis® attorney editors and includes tools for faster research and more relevant results.

 
LexisNexis Store
Research Now - Go to lexis.com
Connect the Dots - Free 1 hour webcast
Share. Network. Discover. - Go to LexisNexis Communities