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The Financial Industry Regulatory Authority revealed in its February report that it has disciplined two San Diego County brokers.

Robert John Clark of Vista was fined $25,000 and suspended 6 months for selling a private placement investment aggregating $350,000 to investors even though he was aware that the issuer had trouble making principal and interest payments to investors and had received a notice of default from the bank.

Kristopher William Bush was fined $10,000 and suspended 20 days. With his partner he mailed a hypothetical model portfolio to prospective clients, claiming falsely to some that it was a portfolio they managed. He did not have his superior's permission to make the mailing.

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Comments

InOmbra Feb. 16, 2012 @ 8:25 p.m.

Good to know that some San Diegans are held accountable, and fined. I wonder how many brokers engage in this type of fraud and don't get caught. Do you know how the FIRA goes about finding this type of activity?

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Don Bauder Feb. 16, 2012 @ 9:24 p.m.

FINRA is the former Nasdaq self-regulatory body combined with the former New York Stock Exchange regulators (who were worthless.) Brokers have to take tests, fill out papers, etc. Aggrieved customers can take a case to the Securities and Exchange Commission, or might take it to FINRA. Or the broker might run into trouble at his brokerage house and get reported by an enemy. FINRA gets information in a variety of ways, often when lawsuits are filed. Best, Don Bauder

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