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Univ. of Toledo College of Law

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Wednesday, June 27, 2007

NASD Fines Wells Fargo For Failure to Disclose Analyst's Conflict

NASD announced today that it censured and fined Wells Fargo Securities, LLC of San Francisco $250,000 - and imposed a $40,000 fine and 60-day supervisory suspension against its former Director of Research, Douglas van Dorsten - for failing to disclose in a research report that the lead analyst on the report had accepted a job at Cadence Design Systems, a San Jose, CA company that was the subject of the report.  NASD also announced that it filed a complaint against Jennifer Jordan, the former Wells Fargo research analyst, for failing to disclose in a series of three research reports that she was pursuing employment and then had accepted a job with Cadence, which was the subject of all three reports. As part of her compensation package with Cadence, Jordan was to receive 15,000 shares of Cadence stock, along with the option to purchase an additional 75,000 shares, once she started working at Cadence.

NASD's disciplinary actions concern three research reports issued by Wells Fargo in February, March, and April of 2005. The subject of the research reports, Cadence, designs semi-conductors for use in the global electronics market. In each report, Jordan was listed as the lead analyst.  See NASD Fines Wells Fargo Securities $250,000 for Failing to Disclose Analyst's Employment with Covered Company in Research Report.

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Comments

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Posted by: Harvey McIntyre | Sep 11, 2007 5:25:25 AM

A marketing practice of the financial industry for developing new business costs IRA contributors (RRSP in Canada) hidden extra costs equal to their tax refunds.

The practice breaks no tax laws, and appears to be outside the mandate of various consumer protection agencies.

Victims are everyone receiving tax refunds from IRA and RRSP contributions. It takes only a moment to allow me to confirm this information. Please visit www.moneyyoudontknowyouhave.com/scam.html

Harvey McIntyre
1429 - 1750 Pembina Hwy
Winnipeg MB. R3T 4J5
harvey@macatax.com
Ph: 204-261-9976

Posted by: Harvey McIntyre | Sep 11, 2007 5:26:39 AM

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