Mr. Browne submitted an Offer of Settlement in which he was suspended from association with any FINRA member in any capacity for one year. In light of Browne’s financial status, no monetary sanction was imposed. Without admitting or denying the allegations, Browne consented to the described sanction and to the entry of findings that he, directly or indirectly, by the use of means or instrumentalities of interstate commerce, or of the mails, knowingly or recklessly employed devices, schemes or artifices to defraud; made untrue statements of a material fact or omitted to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading, concerning a CollateralizedMortgage Obligation (CMO) Program and CMO investments; or engaged in acts, practices or courses of business which operated, or would operate, as a fraud or deceit upon his customers.

The findings stated that Browne effected transactions in, or induced the purchase or sale of, securities by means of any manipulative, deceptive or other fraudulent device or contrivance. The findings also stated that Browne intentionally or recklessly made misrepresentations of material facts and omitted to disclose material facts to customers in connection with their CMO investments. The findings also included that Browne recommended risky and illiquid CMO positions to customers without investigating and understanding the products; Browne lacked reasonable grounds to believe that CMOs were suitable for his customers based on their disclosed investment experience, investment objectives, financial situation and needs. FINRA found that Browne exercised discretionary authority in customer accounts without his customers’ prior written authorization and his firm’s prior written acceptance of the accounts as discretionary.

The suspension is in effect from September 21, 2009, through September 20, 2010.
(FINRA Case #2007011348301)