Cleaning Up the Complaints About 'Rogue Brokers'
NUMBER OF COMPLAINTS ABOUT STOCKBROKERS THAT HAVE GONE TO ARBITRATION AT THE NATIONAL ASSOCIATION OF SECURITIES DEALERS</br></br>The stock marketÛªs long upward climb through most of the 1980s, and again since the 1987 crash, has been very good to a lot of investors. But amid their gains have come a growing number of complaints about those who act as gatekeepers to this wealthÛÓstockbrokers.</br></br>has led the Securities and ,Exchange Commission to levy more than $1 billion in penalties against major firms in the past five years.</br></br>Most recently, Prudential Securities Inc. agreed in October to a settlement with regulators that required it to contribute $330 million to a fund to reimburse investors who suffered losses from the $8 billion of limited partnerships the firm sold during the 1980s. The firm also agreed to pay $41 million in fines after it had been accused of misrepre-: senting high-risk partnerships as; safe, income-producing investments. ;</br></br>Under the new leadership of Ar- ÐÊ; thur Levitt, the SEC has the oppor-: tunity to prove that itÛªs serious about; its latest call for action. At a time; when small investors have returned to the market, strong action by the: agency could provide a reassurance that would benefit the market as well ÐÊ as investors.	.j