Home -> Law Blog Directory -> Criminal Law Blogs -> SECLaw.com

Criminal Law

: SECLaw.com

FINRA Fines 19 Firms a Total of $2.8 Million for Inaccurate Advertised Trade Volume Information

By Mark H. Astarita, Esq.

FINRA fined the firms after it compared the firms' advertised trade volume with the firms' executed trade volume found substantial overstatements for each firm in one or more of the securities reviewed. The firms' overstated trade volumes were made available to market participants by the service providers. The service providers also used the firms' inaccurate advertised trade volumes to compile rankings and reports, including reports that rank the most active broker-dealers by security.So, these firms misrepresented the volume of their business in their advertisements. In other words, they lied to the investing public. Pretty serious stuff, I wonder why the individuals responsible for these misresentations were not barred from the industry.Oh wait, the explanation is later on in the press release...continue to full post

Full post as published by SECLaw.com on January 10, 2008 (boomark / email).