U.S. Securities and Exchange Commission

San Diego broker-dealer settles in fraud case

A San Diego-based broker-dealer agreed to pay $1.95 million to settle a case involving unauthorized fraudulent trading by one of its registered representatives in the accounts of two Florida municipalities, the Securities and Exchange Commission announced Friday.

The SEC maintained that First Allied Securities Inc. failed to reasonably supervise its former broker, Harold J. Jaschke, who was charged with fraud last year.

"Supervising registered representatives is a job that must be taken seriously by broker-dealers," said Rosalind Tyson, director of the SEC's Los Angeles office. "By failing to establish reasonable systems to prevent Jaschke's misconduct, First...

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