New NASD Cases Analyzed

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Oct 31, 2005 10:55 am

Wall Street’s Dirty Little Secrets:
  Uncovered and Analyzed at
http://RRBDLAW.com<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />


 


http://RRBDLAW.com


<?:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />New York, New York
October 31, 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:


 


http://rrbdlaw.com/RegulatoryLinks/CASESOFNOTE/NASD/2005.htm                                            


 


Regulation by Sleepwalking


 



To live in NYC is to wake up to radio spots for David Lerner Associates.  However, that iconic seller of bonds just got slammed by NASD for its advertising.  Not only isn’t it clear to Bill Singer that the representations cited were misleading, but he’s also wondering what took so long.  NASD filed a Complaint in 2004 about conduct going back to 2001 and finally settles the case in 2005.  Is this sleepwalking or effective regulation? (David Lerner Associates)

 Notorious Notaries


 



The NASD gives the notary seal of disapproval to several respondents.  Why this sudden explosion in the misuse of notarized signatures? (Brad David Wilson; David Ray Kelly; Roger Dean Harper, Jr.)

 Neither a Borrower Nor a Lender Be


 



How everything that can go wrong does go wrong when one broker decided to borrow money from his client. (Thomas Michael Aretz.). 

http://rrbdlaw.com/RegulatoryLinks/CASESOFNOTE/NASD/2005.htm


 


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. 


 


CONTACT INFORMATION:
Bill Singer
[email protected]


917-520-2836


http://www.rrbdlaw.com

Nov 3, 2005 7:17 pm

I always find these cases rather interesting.  I do have one question though... it seems that even though some of these people do some pretty sleazy things, the worst thing that ever happens is a fine and getting barred from the industry. 


What about jail time for some of these creaps? 

Nov 4, 2005 3:04 pm

Just a point of clarification; most if not all customer agreements have arbitration provision.  Virtually impossible for a judge not to grant a motion to compell arbitration in civil matters.  


I think the SEC is the only party with authority to prosecute offenders under securities stuff on a criminal level.  Of course their is administrative recourse that the NASD, NYSE and SEC may have as well. But the criminal stuff usually comes from US Prosecutor (ie Doug Hill lied to SEC and US Prosecutor stepped right in from an SEC referral)