The industry watchdog also ordered
The firm's head trader,
According to FINRA, StateTrust charged excessive markups and markdowns to customers in a total of 563 transactions. In 85 of those instances, the markups and markdowns ranged from 8 percent to over 23 percent away from the prevailing market price.
In each of those instances, FINRA said StateTrust either bought bonds from its bank or insurance affiliate and then sold them to customers at a price that was 8 percent or more off the prevailing market; or bought bonds from customers at prices that were 8 percent or more below the prevailing market, then sold them to its bank or insurance affiliate at a slight markup.
StateTrust, Turnes and Cimbal neither admitted nor denied the charges, but consented to the entry of FINRA's findings.
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