John Busacca III, former President and Registered Principal of Orlando-based North American Clearing, Inc., FL, has taken his fight against FINRA to the U.S. Court of Appeals for the 11th Circuit.  In the meantime, FINRA sanctions - a $30K fine and 6-month suspension as principal - are on hold pending the appeal. 

        Alleged Charges.   FINRA had charged Mr. Busacca with failing to reasonably supervise the firm’s operations system conversion and its operations activities to detect and/or prevent certain violations, including, but not limited to, inaccurate box counts, erroneous records of customer securities, failure to timely validate or take exception to transfer instructions, failure to make timely buy-ins, failure to timely liquidate unpaid-for customer securities positions in cash accounts in violation of Reg T, violation of margin requirements as prescribed by NASD Rule 2520(c), and failure to report data to FINRA.

FINRA further alleges that Mr. Busacca failed to reasonably supervise the firm’s operations considering his extensive travel and focus on business development despite his knowledge of the firm’s significant operational problems, the lack of adequate personnel in place to address the firm’s problems, and Mr. Busacca’s failure to diligently and promptly address all of the firm’s operational issues. Finally, Mr. Busacca, acting on his member firm’s behalf, employed an unregistered chief compliance officer.

Prior to heading for the Court of Appeals, FINRA's National Adjudicatory Council (NAC) upheld the sanctions against John Busacca, who then appealed to the SEC - which sustained the sanctions.  So, it's now onto the U.S. Court of Appeals. 

This is FINRA Case #E072005017201.   [FINRA March Disciplinary Actions]