NASD July Sanctions

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Wall Street’s Dirty Little Secrets:  Uncovered and analyzed at<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
<?:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />New York, New YorkJuly 28, 2005
Every month Wall Street’s regulators issue disciplinary decisions that fine and suspend stockbrokers and their firms --- but many of the more interesting stories get buried among the sheer volume of cases.  Nationally-known regulatory lawyer Bill Singer analyzes the securities industry’s docket and provides insight and provocative commentary.  Here are some of the more unusual NASD items Bill uncovers at this month:
If the Court Doesn’t Accept a Guilty Plea, Do You Have to Disclose It?

  • An NASD Hearing Panel bars a broker for failing to disclose both a 1998 misdemeanor charge of “retail fraud,” and his guilty plea to same.  However, on appeal, the NASD National Adjudicatory Council reduces the sanction to a $5,000 fine and 1 year suspension. Was this an honest misunderstanding or a willful failure? You read the case and see if you find the answer so simple. (Zdzieblowski)

Cut and Paste

  • Did you hear the one about the broker who cut and pasted customer signatures onto forms?    (Sibaja)

Equal Administration of Justice?

  • NASD fashioned a tough sanction for a firm with several violations, of which research report improprieties were among them.  The firm is prevented from providing research service for two years.    Hmmn . . . has the NASD slammed the major BDs in similar fashion?  Why not? (The Lugano Group). is a leading securities-industry legal/regulatory website.  The content is published by Bill Singer, a veteran Wall Street regulatory lawyer who represents both the industry and the public. 

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