Hearing Panel Decision in Department of Enforcement v. Respondent

Proceeding Number 20070094013

April 4, 2013

The Hearing Panel finds that Respondent exercised discretion by purchasing municipal bonds in customer accounts after his firm prohibited discretionary trading, in violation of MSRB Rule G-19(d). For this violation, Respondent is fined $5,000. Enforcement failed to prove that Respondent engaged in excessive trading and churning, in violation of MSRB Rules G-17, G-19(c), and G-19(e); made material misrepresentations to customers, in violation of MSRB Rule G-17; or exercised discretion by purchasing equities in a customer’s account, in violation of NASD Rules 2510(b) and 2110. Accordingly, these charges are dismissed.

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