NYSE Enforcement Cases: RRBDLAW
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Wall Street’s Dirty Little Secrets:
Uncovered and analyzed at http://RRBDLAW.com
May 11, 2006
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 New York Stock Exchange (NYSE) items Bill uncovered at http://RRBDLAW.com this month:
A Momma’s Boy
One enterprising broker impersonated a client over the telephone in an effort to sell some mutual funds held at another firm. The client complained about the liquidation and the broker lied to his firm about his actions. Odd enough --- but once the NYSE tries to obtain the broker's explanation, he apparently decides to embark upon the grand tour of India. Then there's the other twist --- his mother starts communicating with the NYSE about her son's unavailability.
(Lee Mackay Turner, SFC/ NYSE Hearing Panel 05-177/February 8, 2006)
How much trouble could an analyst get in if he stands outside the door of a private, press-only briefing and infers good news from the smiling faces of emerging management?
(Daniel Thomas Lemaitre, SFC/Hearing Panel Decision 05-179/February 8, 2006)
Miracles Never Cease
An individual prepares marketing materials and apparently tried to do everything right. Sadly, no one is perfect and he slipped up. Nothing that seems major. Nonetheless, the NYSE decided to charge him and he seems to have resigned himself to the futility of fighting the regulator and agreed to what I think was a grotesque and excessive $50,000 fine. In a rare and laudable development, a NYSE Hearing Panel rejected the settlement and cut the fine in half!
(John Graydon Coghlan, SFC/NYSE Hearing Panel 05-129/January 31, 2006)
What do you think you get when you post 128 messages on Internet chat rooms without your firm’s approval? Would you believe a 3 month bar?
(Erik William Wiklund, SFC/NYSE Hearing Panel 05-124/January 13, 2006)
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.