GunnAllen Resolves Past FINRA Regulatory Issues; Looks Confidently Toward the Future

TAMPA, Fla., May 8 /PRNewswire/ -- Over the past few years, GunnAllen Financial has worked closely with FINRA (f/k/a NASD), to resolve certain regulatory issues identified during GunnAllen's 2005 annual exam. On May 8, 2008, FINRA and GunnAllen agreed to a settlement concerning all outstanding regulatory issues identified in FINRA's annual examinations through 2007. Notably, many of the activities covered by the settlement ceased prior to 2005, and occurred as long ago as 2000:

    -- An alleged trade allocation scheme perpetrated between January 2002
       through December 2003 by the firm's former head trader who was promptly
       terminated by GunnAllen;
    -- An alleged failure to report a business relationship with a barred
       individual based upon an agreement dated January 30, 2003;
    -- Allegations of deficient supervision and of deficient supervisory
       procedures relating to certain activities between January 2002 through
       February 2005;
    -- Allegations of Rule 3070 reporting violations and deficient filings of
       Forms U4 and U5
    -- Allegations of failure to preserve certain instant messages and e
       mails, primarily relating to the trading department, between January
       2000 and September 2003 as a result of a change of the vendor providing
       e-mail services;
    -- Allegations of a failure to implement an adequate anti-money laundering
       compliance program between June 2003 and June 2005.

To settle all these alleged regulatory violations, GunnAllen will pay $750,000 to FINRA. In return, FINRA will seek no further enforcement action against GunnAllen concerning the settled allegations.

"With this settlement, GunnAllen achieves closure for past regulatory issues. For several years now, and long since 2005, GunnAllen has added management talent and invested heavily in compliance and supervisory systems to improve our firm. We take great pride in the people, platform, and systems that define GunnAllen today and we are confident in our prospects for the future," states Richard A. Frueh, CEO of GunnAllen Financial.

"We are also pleased with the outcome of our 2006 and 2007 annual exams which did not result in any further enforcement actions. By entering into this settlement with FINRA, GunnAllen has resolved historical issues, re-affirmed its commitment to supervision and compliance, and now looks forward to continuing to help our affiliates assist their clients achieve financial success." adds Mr. Frueh.

GunnAllen Financial is a full-service brokerage firm that offers an array of financial services including equity and fixed income securities, mutual funds, fee-based programs and institutional and investment banking services. GunnAllen Financial has established a national presence; the firm operates a network of over 800 independent financial representatives in more than 200 offices throughout the country, and it is registered to conduct securities business in all states and jurisdictions.

For more information visit the Web site at http://www.gunnallen.com.