Piper Jaffray Is Fined Over IPO Sales
- Share via
Piper Jaffray Cos. was fined $2.4 million by the NASD on Monday for improper sales of initial public offerings to executives from companies including Liquid Audio Inc. and GoAmerica Inc.
The agency accused the securities firm of “spinning” hot IPOs from 1999 to 2002, offering shares to 22 executives to try to win investment banking business. The executives, mostly chief executives and chief financial officers in publicly traded companies, made a total of $2.4 million in profit, said the NASD, formerly the National Assn. of Securities Dealers.
“Spinning contributes to the public’s perception that the IPO market is rigged in favor of company insiders who receive highly profitable IPO shares as a payoff for lucrative investment banking business,” NASD Vice Chairwoman Mary L. Schapiro said in a statement.
Minneapolis-based Piper Jaffray agreed in April 2003 to pay $32.5 million as part of a $1.4-billion settlement by 10 Wall Street firms over allegations by state and federal regulators that they issued biased research to win banking business.
Piper Jaffray settled the matter without admitting or denying wrongdoing.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
