WASHINGTON -- Two former Little Rock bond dealers yesterday continued amassing penalties for their violations of federal securities laws when the National Association of Securities Dealers announced it has fined Jim Swink Sr. $50,000 and Jim Swink Jr., his son, $15,000 for municipal bond trading violations.
The NASD also said it barred the elder Swink from the securities business for life and suspended the younger Swink from the business for one year.
The fines and suspensions were assessed by the NASD based on various charges, including allegations that the Swinks sold tax-exempt bonds at inflated prices and failed to maintain required balances in customers' margin accounts.
Yesterday's charges cover the Swinks' activities at or involving First American Securities Inc. of Little Rock, a securities firm the younger Swink started after their original firm, Swink & Co., folded in December 1989. The Swinks agreed to settlement of the charges, although they neither admitted nor denied guilt.
The announcement of the latest charges comes only weeks after the older Swink was sentenced to 21 months in jail and the younger Swink was sentenced to five months in a halfway house for a variety of securities violations involving trades in government and municipal bonds it their original firm.
The fines are the latest in a long line of actions taken by the NASD against the Swinks. In September 1990, the elder Swink was censured, fined $50,000, and suspended for four years from taking a leadership role at any firm for violating the association's fair practice rules.
From 1977 to 1989, the elder Swink was the subject of 11 formal NASD actions, the association said.
In other action yesterday, the NASD fined New York broker Keith Scott Phillips $100,000 and barred him from the business for various securities violations. One charge accused Phillips of lying to a customer that he had bought a $25,000 municipal bond for that buyer's account. The NASD did not specify Phillips' firm.
In addition, the NASD fined F.B. Horner & Associates Inc. of New York City and its principal representative F. B. Horner $99,201 for selling zero coupon bonds to a large buyer at inflated prices. The markups were 8.09% and 6.91% above the prevailing market price.