Initiated By
NASD
Allegations
NASD CONDUCT RULES 2110 AND 2310, AND IM-2310-2 - DURING THE PERIOD FROM APPROXIMATELY MAY 2000 THROUGH SEPTEMBER 2000, MARY C. FITZGERALD RECOMMENDED AND EFFECTED UNSUITABLE B SHARE TRANSACTIONS ON BEHALF OF AT LEAST TWO PUBLIC CUSTOMERS. SPECIFICALLY, SHE RECOMMENDED THAT A CUSTOMER PURCHASE MORE THAN $1.4 MILLION WORTH OF CLASS B MUTUAL FUND SHARES IN FOUR DIFFERENT MUTUAL FUND FAMILIES, INCLUDING OVER $700,000 IN ONE FUND FAMILY. ADDITIONALLY, FITZGERALD RECOMMENDED THAT ANOTHER CUSTOMER PURCHASE MORE THAN $2.1 MILLION WORTH OF CLASS B MUTUAL FUND SHARES IN FOUR DIFFERENT MUTUAL FUND FAMILIES, INCLUDING ALMOST $1 MILLION IN ONE FUND FAMILY. FITZGERALD'S RECOMMENDATIONS WERE UNSUITABLE FOR EACH CUSTOMER IN LIGHT OF THE DOLLAR AMOUNTS BEING INVESTED. HAD FITZGERALD RECOMMENDED CLASS A SHARES, THE CUSTOMERS COULD HAVE: (1) BEEN ELIGIBLE TO RECEIVE BREAKPOINTS ON CLASS A SHARE PURCHASES AND AVOIDED, OR MINIMIZED, UP FRONT SALES CHARGES; (2) PAID LOWER 12B-1 FEES THROUGHOUT THE DURATION OF THEIR INVESTMENTS; AND (3) AVOIDED BEING SUBJECT TO CONTINGENT DEFERRED SALES CHARGES.
Resolution
Acceptance, Waiver & Consent(AWC)
Sanctions
Civil and Administrative Penalty(ies)/Fine(s)
Sanctions
Disgorgement
Sanctions
Suspension
Regulator Statement
WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, SHE IS SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER FIRM IN ANY CAPACITY FOR 30 DAYS AND FINED IN THE AMOUNT OF $61,779, WHICH INCLUDES DISGORGEMENT OF COMMISSIONS IN THE AMOUNT OF $51,779 AND A MONETARY FINE IF $10,000. THE SUSPENSION WILL COMMENCE ON NOVEMBER 15, 2004 AND CONCLUDE AT THE CLOSE OF BUSINESS ON DECEMBER 14, 2004. FINES PAID.
Broker Comment
RECOMMENDED; AFFECTED UNSUITABLE B SHARE TRANSACTION