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Conversion Or Improper Use Of Funds Or Securities
NASD Conduct Rules 2110 And 2330 And IM-23301
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Principal Considerations In Determining Sanctions
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Monetary Sanction
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Suspension, Bar, Or Other Sanctions
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See Principal Considerations In Introductory Section
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Conversion2
(No fine recommended, since a bar is standard.)
Improper Use
Fine of $2,500 to $50,000.
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Conversion
Bar respondent regardless of amount converted.
Improper Use
Consider a bar. Where the improper use resulted from respondent's misunderstanding of his or her customer's intended use of the funds or securities, or other mitigation exists, consider suspending respondent in any or all capacities for a period of six months to two years and thereafter until respondent pays restitution.
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1 This guideline also is appropriate for violations of MSRB Rule G-25.
2 Conversion generally is an intentional and unauthorized taking of and/or exercise of ownership over property by one who neither owns the property nor is entitled to possess it.
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Forgery And/Or Falsification Of Records
NASD Conduct Rule 2110
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Principal Considerations In Determining Sanctions
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Monetary Sanction
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Suspension, Bar, Or Other Sanctions
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See Principal Considerations In Introductory Section
1. Nature of document(s) forged or falsified.
2. Whether respondent had a good-faith, but mistaken, belief of express or implied authority.
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Fine of $5,000 to $100,000.
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In cases where mitigating factors exist, consider suspending respondent in any or all capacities for up to two years. In egregious cases, consider a bar.
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