SEC Overturns NASD “Selling Away” Decision

Law360, New York (November 10, 2008, 12:00 AM EST) -- The Securities and Exchange Commission has overturned decisions by two enforcement bodies of the Financial Industry Regulatory Authority that left two securities brokers facing months of suspensions and thousands of dollars in fines for their participation in an alleged “selling away” scheme.

The National Association of Securities Dealers, FINRA's predecessor, suspended two former PaineWeber and Lehman Brothers securities brokers for receiving shares of e2 Communications Inc. common stock as a “finders fee” in connection with the private placement of 750,000 of e2 convertible preferred stock, the...
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