NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

Michael Alcide Poutre II (Principal)
AWC/2008011759201

Poutre placed orders for the sale of corporate bonds and placed charges on the orders for markups, which were not fair and reasonable, in consideration of the factors set forth in NASD Interpretative Material 2440(b). Poutre solicited securities transactions in actively traded, liquid corporate bond transactions for customers and charged the customers markups or markdowns that exceeded 3 percent and $400; most of the transactions were large and, because they involved corporate bonds, a markup or markdown over 3 percent would be considered excessive. The corporate bonds involved were readily available and involved large transactions of higher priced securities, which justified lower percentage rates. Also, the markups and markdowns were not disclosed to the customers and the number of violative transactions established a pattern of excessive markups and markdowns, and nothing in Poutre’s or his member firm’s business activities justified the markups or markdowns of over 3 percent.

Michael Alcide Poutre II (Principal): No Fine in light of financial status; Suspended 30 days

Tags: Mark-Up Mark-Down