New FINRA Disciplinary Cases Analyzed by Bill Singer

July 16, 2008

http://rrbdlaw.com/RegulatoryLinks/CASESOFNOTE/NASD/2008.htm


Not a particularly dramatic month but a number of interesting new FINRA disciplinary cases.†

FINRA busted a trader for running the old Best-Bid-Best-Offer scam. First you post a limit order through the prop account. Then you place a non-displayed order to cross the markets. Then you're off to the races. (Mason)

We also have a wonderful example of regulatory doublespeak: It's no longer stealing. No, now it's withdrawing cash without permission from a bank!† (Tucay)

Also looks like some analysts know how to write but maybe not how to read...at least not how to read the Research Rules. Still got some clowns doing personal trades against their published recommendations, and also persisting in opening non-disclosed away accounts. (Wu, Kuklinski, Almendinger)

And one of our all-time favorites is resurfacing -- the impersonation of a customer over the phone. (Heiselman)

Finally, did you hear the one about Lehman Brother's nearly $1.5 billion net capital error?† I didn't.† Sort of surprised that there wasn't more of that made in the Press. (Lehman Brothers)

Enjoy!