FINRA Securities and Investment Fraud and Mismanagement Attorney, Russell L. Forkey, Esq.
Scottrade, Inc. (CRD #8206, St. Louis, Missouri) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $35,000. Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it failed to determine in all municipal securities transactions whether the underlying credit rating of the issuer of an insured municipal security constituted material information that was required to be disclosed at or before the time of purchase. The findings stated that the firm failed to disclose to customers in connection with municipal securities transactions, all material facts at or before the time of purchase, in that the firm failed to disclose to customers the underlying credit rating of insured municipal bonds at or prior to the time of purchase. (FINRA Case #2008016050101).