NASD Regulation Fines Hornblower & Weeks, Inc.

NASD regulation fines Hornblower & Weeks, Inc. $100,000 and suspends firm from all research activities for 6 months; firm president also fined and suspended.

NASD Regulation, Inc. today announced that as part of its ongoing focus on research analyst activities, it reached a settlement with Hornblower & Weeks, Inc. of New York, NY, and its President, John Rooney. NASD Regulation found that the firm and Rooney issued a research report recommending the common stock of MyTurn.com as a "strong buy" when, in fact, the report contained baseless projections, misleading and exaggerated statements and omitted important facts, in violation of NASD antifraud and advertising rules, as well as the antifraud provisions of the federal securities laws.

As part of its settlement with NASD Regulation, Hornblower was censured and fined $100,000. Hornblower also agreed to suspend its research activities for six months and, before resuming research reports, to retain an outside consultant to review and make recommendations concerning the firm's procedures relating to research reports.

Rooney was fined $85,000, along with the firm, and was suspended from associating with any NASD member firm for three months in all capacities, and for an additional four months in a supervisory or principal capacity. Rooney is required to requalify through examination as a principal before again serving in that capacity.