Wall Street Manna

An irreverent look at Wall Street

Thursday, February 19, 2009

FNRA's slap on Stanford group's wrist

FNRA fined Stanford Group, the $8 billion dollar fraud of whose chairman, Sir Allen Stanford, is missing, $10K for not accurately describing the CD's of which he was able to get money for his scam. Here's the case:

Stanford Group Company (CRD #39285, Houston, Texas) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $10,000. Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that, in connection with the offers and sales of certificates of deposit (CDs) a bank affiliate issued, it distributed sales literature that did not comply with FINRA advertising rules, in that it failed to disclose that the affiliation between the firm and the bank could create a conflict of interest in connection with its offers and sales of the bank-issued CDs. The findings stated that the brochures failed to present fair and balanced treatment of the risks and potential benefits of a CD investment, failed to contain the name of the firm using the materials and contained misleading, unfair and unbalanced information. (FINRA Case #2005002203701
http://www.businessinsider.com/check-out-stanfords-10k-finra-fine-2009-2

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