Stanford Financial Fined A Whopping $10,000 By FINRA In ’07


Oh, sorry for suggesting that federal regulators were ever asleep at the switch on this one. Turns out FINRA was all over Stanford Financial:

Bloomberg: Stanford Group Co. was fined $10,000 by the Financial Industry Regulatory Authority in November 2007 for distributing marketing material that “failed to present fair and balanced treatment” of the risks associated with CDs. The U.S. Securities and Exchange Commission yesterday filed a civil lawsuit calling the sales by the Houston-based firm a “massive, ongoing fraud.”

Can someone tell us the point of a $10,000 fine. Can you even conduct the smallest investigation on less than $10,000 in man hours? And given that it took Alex Dalmady 30 minutes to conclude that Stanford was a fraud, how did FINRA conclude that the company was failing to present a fair treatment of risks, but no conclude that the whole thing was a sham.

Have we mentioned yet that this guy was very politically connected.