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NYSE Fines Charles Schwab For Poor Control Procedures

Law360 (November 15, 2005, 12:00 AM EST) -- Charles Schwab & Co. Inc. failed to prevent investment advisors from forging checks and letters of authorization to move its customers’ assets, according to a New York Stock Exchange panel, which slapped the broker-dealer with a $1 million fine Tuesday as part of a settlement.

NYSE Regulation, the exchange's two-year-old regulatory arm, said the non-employee advisors took advantage of Charles Schwab’s ineffective procedures to commit the fraud between 1998 and the first quarter of 2003. In addition, Charles Schwab was accused of disposing of electronic communications...
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