NASD announced Friday that it had fined David Lerner Associates Inc. in Syosset, N.Y., $115,000 for misleading marketing - including radio advertising, client seminars, and other communications with the public.
It also was ordered not to hold any public seminar for 30 days, and for six months it must prefile all sales literature and advertisements with NASD's advertising regulation department at least 10 days before their first use.
Also sanctioned Friday were David Lerner, the company's president; John Dempsey, its senior vice president of sales, and SSH Securities Inc., an affiliate. Mr. Lerner and Mr. Dempsey were each fined $25,000, and Mr. Dempsey was suspended for 30 days from being a principal or supervisor at any registered firm. SSH Securities must pay a $10,000 fine for allegedly preparing inaccurate fact sheets distributed by the Lerner firm to promote a proprietary mutual fund family.
NASD, the securities industry's self-regulating entity, said the Lerner company had widely disseminated statements that were exaggerated, misleading, and unsupported by the facts.
