The allegations read: On or about may 18, 2002 mr. Ballentine received a call from [customer] requesting to open a margin account. Mr. Ballentine purchased 700 shares of at & t for [customer] on margin. [customer] used other securities to margin the 700 shares of at & t. Decline in the at & t securities caused the margin equity to decline. This caused margin calls which the client did no meet and subsequently there was a sellout of the shares of at & t. Client filed a complaint the nasd on or about august 6, 2002 alleging unauthorized trading. Nasd examination no. E8a020576. Nasd determined no disciplinary action taken against mr. Ballentine.
