The president of Go-Video Inc.--a Scottsdale, Ariz.-based firm whose stock has fluctuated wildly in recent months--has been barred by the National Assn. of Securities Dealers from associating with any NASD member, according the company’s annual 10-K report filed last month with the Securities and Exchange Commission.
The action was taken against Eric J. Shedeler as a result of a complaint filed with NASD in June, 1986. The complaint charged that, as a partner in a Colorado Springs, Colo., investment company, Shedeler purchased 6,000 shares of stock through another broker in the name of a customer who had not authorized the purchase. When the customer refused to pay for the stock, the brokerage firm suffered a $6,000 loss, according to the complaint.
The NASD ruled last March that Shedeler had violated its rules of fair practice. In addition to being disbarred, he was fined $5,000.
In a statement issued Thursday, Go-Video said that its investigation of the situation “indicated that the NASD action was taken without Mr. Shedeler receiving prior notice, and that Mr. Shedeler had no opportunity to respond to the complaint.”
“Mr. Shedeler has advised us that the complaint received by the NASD was without justification. Our understanding of the facts is that Mr. Shedeler was involved in no wrongdoing, " the statement said.
Center of Controversy
The company also said it had amended its 10-K filing to delete any reference to the NASD action on the basis that it “is not material to an evaluation of Mr. Shedeler’s ability or integrity.”
Go-Video has been a lightning rod for controversy since last April, when it filed a $250-million antitrust suit against 18 Japanese and Korean electronics manufacturers, the Motion Picture Assn. of America and all the major Hollywood movie studios. The suit charges that the companies conspired to keep Go-Video from obtaining the parts necessary to manufacture a dual-deck videocassette machine.
Go-Video obtained a patent and announced plans to manufacture and market the dual-deck machine in the Unites States--a move that has been vehemently opposed by the American movie industry, which fears that the VCR’s cassette-to-cassette recording ability would spark widespread piracy of copyrighted films.