[ by Howard Haykin ] Lawson Financial, a broker-dealer based in Phoenix, AZ, agreed to settle FINRA charges that the firm executed municipal securities purchases and sales with customers on a proprietary basis at aggregate prices - including any markup or markdown - that were not fair and reasonable.  FINRA notes that the firm has already provided restitution to the customers who allegedly incurred excessive markups or markdowns. Respondent. Lawson Financial Corporation ("LWFL") has been a member of FINRA since August 1984 and its registration remains in effect. FINRA Findings and Allegations. Market Regulation conducted a review of LWFL's compliance with MSRB Rules G-l 7 and G-30 for the 3-month review period, from 7/1/08 through 9/30/08.  During that period, in 21 transactions, the firm purchased muni securities for its own account from a customer and/or sold municipal securities for its own account to a customer at an aggregate price , including any mark-down or mark-up, that was not fair and reasonable ...

"taking into consideration all relevant factors, including the best judgment of the broker, dealer or municipal securities dealer as to the fair market value of the securities at the time of the transaction and of any securities exchanged or traded in connection with the transaction, the expense involved in effecting the transaction, the fact that the broker, dealer, or municipal securities dealer is entitled to profit, and the total dollar amount of the transaction."

Rule Violations and FINRA Sanctions. Such conduct as described above, would constitute separate and distinct violations of MSRB Rules G-17 and G-30(a).  For its alleged conduct, LWFL agreed to pay a $25K fine and had previously made all affected customers whole.    [FINRA Disciplinary Actions for June 2012] For further details, go to:  [FINRA AWC #2008016005501].