SRO Fines Lerner Broker-Dealer Over ‘Intentional’ Excessive Markups

April 5, 2012, 4:00 AM UTC

The Financial Industry Regulatory Authority announced April 4 that a hearing panel ruled that Long Island-based broker-dealer David Lerner Associates Inc. charged excessive markups on municipal bond and collateralized mortgage obligation sales between 2005 and 2007 (Department of Enforcement v. David Lerner Associates Inc.).

As a result of the misconduct, FINRA said in a release, the firm’s retail customers paid unfairly high prices and received lower yields than they otherwise would have obtained.

In the release, it noted that the panel fined the firm $2.3 million and ordered it to pay restitution of $1.4 million. At the same ...

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