J.W. Korth & Company to pay Restitiution
J.W. Korth & Company, Limited Partnership (CRD #26455, Lansing, Michigan) was ordered to pay the approximate amount of $29,268, plus interest, in restitution to customers and in lieu of a fine, is required to retain an independent consultant with experience in establishing pricing procedures for sales and purchases of debt securities to review the firm’s pricing procedures with a view towards ensuring that the firm does not charge prices in excess of what is fair and reasonable, taking into consideration all relevant factors.
Any restitution that J.W. Korth & Company is not able to pay to a customer must be paid to FINRA, without interest, as a fine. The sanctions were based on findings that J.W. Korth & Company charged excessive markups on sales of municipal bonds and corporate bonds, and excessive markdowns on purchases of corporate bonds. The findings stated that the various markups and markdowns were not fair and reasonable. OHO dismissed allegations that the firm charged excessive markups or markdowns relating to three sales of collateralized mortgage obligations, six sales of municipal bonds and two sales of corporate bonds. This matter has been appealed to the NAC and the sanctions are not in effect pending review.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956 or by email at [email protected]. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.
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Brenda Hamilton, Securities Attorney
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