NASD June Enforcement Cases
Wall Street’s Dirty Little Secrets:
Uncovered and analyzed at http://RRBDLAW.com<?: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 http://RRBDLAW.com 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)
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).
RRBDLAW.com 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.