Proceeding Number 2011026664301

Amended Hearing Panel Decision in Department of Enforcement v. Gardnyr Michael Capital Inc. and Pfilip Gardnyr Hunt, Jr.

January 28, 2014

Respondent Gardnyr Michael Capital, Inc. ("GMCI") willfully violated MSRB Rule G-17 when, in connection with bond rating trips, it improperly sought and received reimbursements from municipal bond proceeds for unnecessary expenses and for expenses it was contractually obligated to pay. GMCI is censured, fined $10,000 and ordered to pay restitution of $5,322.44, plus interest.

 

GMCI and Respondent Pfilip Gardnyr Hunt, Jr. willfully violated MSRB Rules G-27 and G-17 by failing to adopt, maintain, or enforce any written supervisory procedures for bond rating trips, and by failing to supervise bond rating trips. For these violations, GMCI is censured and fined $10,000. Hunt is fined $10,000 and is suspended in all principal capacities for three business days. GMCI is assessed costs. Respondents' willful rule violations subject them to statutory disqualification.

 

The Hearing Panel dismisses two causes of action charging GMCI with violating MSRB Rule G-17 for seeking and obtaining reimbursements from municipal bond proceeds for entertainment expenses incurred in municipal bond rating trips.

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