NASD August 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
August 18, 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:
For My Next Impression.
Jones impersonated broker Fernandez, who was supposed to take the Firm Element/Continuing Education session. Jones then submitted a certificate falsely stating that Fernandez complete the program. Jones was fined $5,000 and suspended. Fernandez --- oh. . . NASD said that he “learned” about the impersonation and failed to correct the firm’s records or to report Jones. He got the same sanction. (Scott West Jones and Joe Manuel Fernandez)
Do I Get a Toaster?
Then there was the clever guy who agreed to deposit $18,200 in cash (which just happened to belong to someone else) into his personal account at the bank where he worked. He thought he’d be extra helpful by making two under-$10,000 deposits to avoid a currency transaction report. Guess what? He got caught. And barred (Juan Carlos Alb)
Putting Your Money Where Their Mouth Is . . . Sort Of
How about CJS Securities, which permitted its analysts to sell securities when the firm had a buy or hold recommendation? And there’s more along the same lines. (CJS Securities, Inc.).
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.