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NASD Hits Broker With Its Largest Fine Ever

Law360 (October 25, 2006, 12:00 AM EDT) -- A hedge fund manager has received a $2.25 million fine from the National Association of Securities Dealers for allegedly using deceptive practices to market time through variable annuities.

The fine, which was announced Wednesday, is the largest ever issued by the NASD. It went against Paul Saunders, the chairman, CEO and majority owner of Richmond, Va.-based James River Capital Corp.

“Deceptive market timing designed to exceed prospectus limitations and evade insurance company and mutual fund restrictions not only violates ethical standards but may also harm investors,”...
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