Disciplinary Actions

Just a sample of actions taken against Firms and Individuals 

(See full document at http://www.nasd.com/web/groups/rules_regs/documents/notice_to_members/nasdw_016971.pdf)

Firm Fined, Individual Sanctioned:

Fine $10,000, Suspension 30 days.

The Firm’s president and sole executive officer, Chief Compliance Officer and Financial and Operations Officer failed to timely satisfy the Continuing Education/Regulatory Element requirement.  Firm failed to include proprietary positions in trial balances and related haircut charges resulting in inaccurate calculation of its net capital.

Firms Fined:

Fine $20,000

Firm failed to report or to accurately report corporate bond transactions to the Trade Reporting and Compliance Engine (TRACE).  Also failed to accurately report municipal securities transactions to the MSRB.

Fine $13,000

Firm transmitted reports to OATS that contained inaccurate time stamps.  Findings stated that the firm’s supervisory system failed to provide for supervision reasonably designed to achieve compliance qith applicable laws and regulations.

Fine $123,500

Firm filed late U-5’s and failed to timely amend Form U-4’s to disclose customer complaints.

Individuals Fined:

Barred and Fined $276,265

Individual participated in private securities transactions without providing prior written notice to and receiving prior written approval from member firm, acted recklessly by making material misrepresentations and omitted material facts in the sale of securities to public customers; engaged in outside business activities without prompt written notice to his member firm and assisted in the preparation of false account statements.

Suspended 3 months Fined $5000

In connection with executed purchases or switches of mutual funds that had been authorized by public customers, the representative signed customers’ names to certain disclosure documents without their authorization or consent.

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