M. E. Allison & Co., Inc.

Allegations: ACCEPTANCE, WAIVER AND CONSENT:CENSURED AND FINED $8,000 BY THE NASD FOR VIOLATIONS OF ARTICLE III, SECTIONS 1 AND 21 OF THE RULES OF FAIR PRACTICE. WITHOUT ADMITTING OR DENYING THE EXISTANCE OF ANY VIOLATIONS, THE FIRM CONSENTED TO THE FOLLOWING FINDINGS: DUE TO AN ERROR IN COMPUTING THE FIRM'S NET CAPITAL, THE FIRM ENGAGED IN SECURITIES TRANSACTIONS WHILE FAILING TO MAINTAIN REQUIRED MINIMUM NET CAPITAL, FILED INACCURATE FOCUS PART I REPORTS, AND FILED AN INACCURATE ANNUAL REPORT. Status: Final Sanction Detail: CENSURED & FINED $8,000 J&S Summary: FINAL

Allegations: ACCEPTANCE, WAIVER AND CONSENT;CENSURED & FINED $7,500 BY THE NASD, WITHOUT ADMITTING OR DENYING THE EXISTANCE OF ANY VIOLATIONS, THE FIRM CONSENTED THAT AS A RESULT OF INCLUSION OF SECURITIES WHICH HAD PREVIOUSLY, FOR 30 YEARS, ACCEPTED AS GOOD CAPITAL BUT ARE NOW BEING DISALLOWED DUE TO LIMITED MARKETABILITY; ADDITIONALLY THE FIRM RELIED ON THE ADVISE OF ITS AUDITORS THAT RECEIVABLES FROM THE US GOVERNMENT WERE AN ALLOWABLE ASSET,ALTHOUGH SUCH RECEIVABLE WERE SUSEQUETLY DETERMINED TO BE NON-ALLOWED ASSETS, AN ERROR OCCURED IN COMPUTING THE FIRMS NET CAPITAL Status: Final Sanction Detail: CENSURED AND FINED $7,500 J&S Summary: FINAL

Allegations: NASD RULES OF FAIR PRACTICE, ARTICLE III, SECTIONS 1, 18, 27 - INDIVIDUALS, ACTING THROUGH THE FIRM, PURCHASED SECURITIES FOR THEIR ACCOUNTS AND THEREAFTER VIOLATED SECTIONS 4(C)2 AND 4(C)8 IN CONNECTION WITH SAID TRANSACTIONS; AND FICTITIOUSLY POSTED ENTRIES TO CUSTOMERS' LEDGERS INDICATING THAT PAYMENT FOR THE PURCHASES WAS RECEIVED WITHIN THE SEVEN BUSINESS DAY TIME PERIOD SPECIFIED UNDER 4(C)2 OF REGULATION T OF THE FEDERAL RESERVE BOARD WHEN IN FACT THE DEBIT BALANCES WERE NOT TIMELY PAID AND WERE TRANSFERRED TO RECEIVABLE ACCOUNTS. Status: Final Sanction Detail: CENSURED AND ASSESSED COST OF $700. SEAL WAS CENSURED AND FINED $1,000.