Extended Hearing Panel Decision in Department of Enforcement v. Respondent

Decision Number 2007009461301

October 8, 2010

The Department of Enforcement failed to prove by a preponderance of the evidence that Respondent:  (i) made unsuitable recommendations to customers to engage in covered call options transactions, in violation of Conduct Rules 2110, 2310, and 2860(b)(19); (ii) failed to explain adequately the risks of engaging in a covered call options strategy, in violation of Conduct Rule 2110; and (iii) made false and misleading communications to two customers, in violation of Conduct Rules 2110, 2210(d)(1) and 2220(d)(1).  Accordingly, Respondent is found not liable for the violations alleged in the Complaint, and the Complaint is dismissed.

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