Blotter
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Banc One Is No. 1 — in Fine Size: The NASD fined Banc One Securities $400,000 because the firm didn't put into place the proper procedures that would prevent late trading and market-timing in mutual funds held by customers. This, amazingly, is the largest fine imposed by any regulator for “supervisory failures related to potential late trading,” according to the NASD.
Fleecing the Flock: The SEC hit Thom Calandra, an investment columnist at CBS MarketWatch.com, with civil fraud charges for using his newsletter to boost his trading profits. After making positive recommendations of thinly-traded, small-cap companies in his investment newsletter, Calandra would sell his shares in the stocks, making money by the jumps in price. From March to December 2003, Calandra made over $400,000 in illegal profits, according to the SEC. He was penalized $540,000.
Morgan Gets a Slap: The NYSE has fined Morgan Stanley $13 million, in addition to censuring the firm, for not complying with NYSE rules and securities laws. Violations included failing to: deliver prospectuses to 141,000 customers; submit about 490 required regulatory filings; and review correspondence between registered reps and branch managers.
