Merritt, Vickers, Inc., A/K/A M. J. Merritt & Co., Inc. And Matthew J. Merritt, Jr. And James S. Vickers v. Securities and Exchange Commission

MOORE, Circuit Judge:

In 1962, the National Association of Security Dealers’ (NASD) District Business Conduct Committee of District No. 12 found that Merritt, Vickers, Inc., 1 a registered broker-dealer, had executed 120 retail sales of securities as principal between February 8, 1960, and October 10, 1960, at unfair prices not reasonably related to current market prices in violation of Sections 1 and 4 of Art. Ill of the NASD Rules of Fair Procedure, 2 as interpreted by its mark-up policy. 3 The prices computed by the NASD ranged from 10.5% to 125% over prevailing market prices. In 47 of the…