Broker Dealer Fined In "Pay-To-Play" Scandal

Law360, New York (January 31, 2006, 12:00 AM EST) -- The National Association of Securities Dealers has followed through on its bid to stop “pay-for-play” activities in the municipal bond industry, fining Berean Capital Inc. and its president for allegedly failing to disclose political contributions made to both city and state officials.

Chicago-based Berean and the firm’s president, Dudley Brown Jr., were fined $100,000 for activities that took place while Berean was acting as a municipal securities dealer, including an overall alleged failure to report, disclose and research various known violations.

The NASD accused Berean of...
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