FINRA Sanctions Three Brokers Over CMO Abuses

Law360, New York (September 4, 2008, 12:00 AM EDT) -- In its first penalties stemming from an industrywide probe, the Financial Industry Regulatory Authority has sanctioned three brokers from defunct brokerage firm SAMCO Financial Services for allegedly selling complex mortgage-backed securities to inexperienced investors, who lost $535,000.

On Thursday, FINRA announced that brokers Cindy Schwartz and Brian Berkowicz had been permanently barred from the securities industry, and broker John Webberly had been suspended for two years, for allegedly misrepresenting material facts or making unsuitable recommendations in selling sophisticated mortgage-backed securities known as collateralized mortgage obligations to...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.