• Regulate Thyself, NASD: The NASD in effect slapped its own hand after issuing its first permanent cease-and-desist order to revoke the membership of Boca Raton, Fla.-based brokerage LH Ross. The National Adjudicatory Council, a semi-independent body within the NASD that hears appeals on panel decisions, found the NASD had overstepped its bounds in permanently expelling the firm for not paying a fine issued in August.

  • Class is in Session: Morgan Stanley is the target of a class-action lawsuit that says the firm received secret payments and offered unethical incentives to brokers for selling variable annuities. The suit was filed in San Diego in the name of William Dornan, a former Morgan Stanley client. His attorney, Ronald Marron, said he plans to file a similar suit against Merrill Lynch and that a similar complaint is already pending with the NASD against Charles Schwab.

  • He Looked Bigger on TV: Todd Eberhard, former chairman of Park South Securities and frequent guest analyst on financial programs on CNN, PBS and other networks, has been permanently barred from the securities industry for fraud and other violations. Between 1998 and 2001, Eberhard repeatedly — and unbeknownst to customers — bought and sold B and C shares in mutual fund accounts, amplifying commissions for himself and costing his clients millions.