S.E.C. Seeks New Penalties For Improper Broker Sales
Securities and Exchange Commission officials said today that during a two-year investigation of nine big brokerage firms, they found an unexpectedly large number of cases of improper sales practices and had referred them to the agency's enforcement division for further investigation and possible punitive action. In releasing a report on the inquiry, Arthur Levitt Jr., the S.E.C.'s chairman, also outlined plans for a crackdown on stock and bond brokers who generate extra commissions by pushing clients into inappropriate investments. He said in an interview that the agency would be quicker to bar brokers from the industry and impose stiff fines for violations that previously would have drawn lesser penalties.