For the second time in less than a year Syosset-based brokerage David Lerner Associates has caught the attention of the Financial Industry Regulatory Authority. The Wall Street Journal reported that Finra fined David Lerner Associates $2.3 million for marking up mortgage-backed securities and muncipal bonds, thereby generating lower yields for customers than they otherwise would have.
Finra also fined the firm’s head trader $200,000 and suspended him from the industry. Both the firm and the broker plan to appeal the decision.
The fine follows a still pending Finra probe that launched last June to investigate whether David Lerenr Associates gave false information when it marketed an Apple REIT trust to “unsophisticated” customers.