Turner Investment Distributors, Inc. (CRD #40644, Berwyn, Pennsylvania) received a censure and fine of $100,000. The firm was also required to file all sales literature and advertisements concerning hedge funds and funds of hedge funds with NASD's Advertising Regulation Department at least 10 days prior to their first use for six months from the date of acceptance of this AWC. According to the findings, the firm distributed sales literature regarding hedge funds to public customers that had inadequate risk disclosures about the specific risks of investing in hedge funds and made unbalanced presentations about the particular hedge fund that failed to provide investors with a sound basis for evaluating the facts associated with investing in the hedge funds. The regulators also found that the firm launched a Web site that allowed all members of the public to download print-disabled versions of a private placement memoranda in violation of SEC requirements of the registration exemption in Regulation D, Rule 506, and the unregistered offerings violated Section 5 of the Securities Act of 1933. The firm accepted the fine and censure but did not admit or deny the accusations. (NASD Case #CAF030068)
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