February 20, 2007
SEC Sustains NASD's Findings in Research Reports Case
The SEC sustained NASD's findings of violation against Donner Corporation International, a former NASD member firm, Jeffrey L. Baclet, its former president and sole owner, and Vincent M. Uberti and Paul A. Runyon, former registered representatives of Donner. NASD found that Donner, Baclet, Uberti, and Runyon violated Section 10(b)and Rule 10b-5, and NASD Rules 2120, 2210, and 2110 by preparing and disseminating research reports which contained material misstatements and omissions. NASD found further that Donner, Baclet, and Uberti violated NASD Rule 2110 by failing to disclose in certain Donner research reports the compensation Donner received for writing the reports. NASD also determined that Donner and Baclet violated NASD Rules 3010, 2210, and 2110 by failing to establish and maintain adequate written supervisory procedures and by failing to ensure written approval of Donner's research reports by a firm principal.
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