FINRA Fines Jefferies $1.5M Over ARS Disclosures

Law360, New York (April 14, 2011, 2:19 PM EDT) -- The Financial Industry Regulatory Authority announced Thursday that it had fined investment bank Jefferies & Co. Inc. $1.5 million for failing to disclose additional compensation received and conflicts of interest in connection with the sale of auction rate securities.

Jefferies was also forced to return $425,000 in fees and commissions to affected customers that it earned through the sale of ARS, according to the self-regulatory organization.

In addition, FINRA hit two Jefferies brokers for their role in the sales of the ARS in question. Anthony Russo...
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