CHICAGO -- A Texas brokerage firm and one of its former brokers were assessed a total of $15,500 by the National Association of Securities Dealers last week for defrauding an Ohio city.

Englewood, Ohio, had charged Murchison Investment Bankers and its former broker Kenneth Schulte with fraud and misrepresentation in the sale of interest-only stripped mortgage-backed securities. The NASD's July 27 decision found Murchison and Schulte liable. But while the city. had asked for nearly $51,000 to cover its losses, plus another $40,000 to cover other damages, the arbitrator's award totaled only $15,500. Murchison was ordered to pay Englewood $9,000, Schulte was ordered to pay $4,500, with the firm and the broker splitting a $2,000 fee to cover the cost of the NASD hearing.

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