Stock777 is absolutely right. AB Watley and Etradepro should be shut down also if this is the case. Did plenty of buying a 100 and shorting 1-2k shares with ET and buying 500 shares of bullets and short 5k of stock. They're all the same.
God this is old... http://www.thejournalnews.com/newsroom/101803/d01a18nasd.html He got fined $320,000...Nothing when you just sold the company for 100 million.
Ok, those are the NASD fines.....but it looks like the SEC busted them first: http://www.sec.gov/litigation/admin/34-48338.htm Usually the SRO is first to know!