FINRA Tells Investment Firm To Pay $4M For High Markups

Law360, New York (April 4, 2012, 7:51 PM EDT) -- The Financial Industry Regulatory Authority on Wednesday ordered New York-based investment company David Lerner Associates Inc. to pay $3.7 million for allegedly charging excessive markups on municipal bond and collateralized mortgage obligation transactions.

A FINRA hearing panel fined DLA $2.3 million for the markup and supervisory violations and ordered the company to pay $1.4 million, plus interest, in restitution to retail customers that FINRA said had to pay unfairly high prices and receive lower yields because of DLA's actions.

The panel also fined DLA's head trader...
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