Jeff Smith 8 p.m., Aug. 30
Craig Biddick Expelled from Brokerage Business
The Financial Industry Regulatory Authority (FINRA), which has jurisdiction over securities broker-dealers and registered representatives, has banned Craig Biddick from the brokerage industry, and officially expelled his penny stock brokerage, Mission Securities, which has already closed down. The action of Feb. 24, 2010 affirms a move originally taken in December of 2008, and appealed by Biddick. FINRA concluded that Biddick had converted and misused customers' securities. He must disgorge $38,96.06 in ill-gotten gains. Among many things, FINRA pointed out that Biddick told a customer that his shares in a certain stock were of little or no value. The very same day, Biddick began peddling the stock to other customers for $3.50.
Craig Biddick is the brother of Bruce Biddick. For several years, they worked together at Bruce Biddick's Centex Securities, a notorious firm that was shut down by regulators in 2001. Among many things, Bruce Biddick attempted to pay a mutual fund manager $2 million to pay above-market prices for two stocks. The deal was to be disguised through the secrecy and tax haven of Switzerland. But the mutual fund manager was a Federal Bureau of Investigation prober in disguise. Bruce Biddick got four months in prison for that caper.
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