NASD June Enforcement Cases

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Jun 20, 2005 9:33 am

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 York
June 20, 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:



Private Settlements Between Broker and Client


Why not just write out a check and silence the complaining public customer?  Doesn’t’ everyone benefit?  After all, the customer is satisfied, the broker gets on with his or her life, and the firm avoids a problem.  But that it were so simple a solution. (Duke, Donnerstag,and Bestine cases)


Unlisted Number


Broker #1 can’t sell to customers from State X.  Broker #2 can.  The two work out a deal whereby Broker #1’s client in State X is listed as a client of Broker #2.  Oh, my poor, poor, deluded RRs --- it doesn’t work that way.   (Pizzirusso)


Threatening Ain’t What It Used to Be


The NASD writes up an individual for threatening a public company in an effort to get higher fees.  The regulator actually uses that word --- threatens.  And how many months suspension does the offending respondent get? Not a one.  Yeah, but how many weeks? Not one.  Okay, well, how many days?  Read the case for the disturbing answer. (Awadalla). 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. 


Bill Singer
[email protected]