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NASD July Sanctions

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Jul 27, 2005 8:32 pm

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
July 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. 


Bill Singer
[email protected]