A broker in Temecula, CA, "got socked with a $50K fine and a 1-year suspension to settle FINRA charges that, while servicing customers of his member firm’s affiliated bank, he misled his risk-adverse customers into investing in mutual funds that didn't comport with with their risk tolerances and investment objectives.  These customers - all the firm’s bank employees - had been referred to the broker. 

The broker, however, according to FINRA, led these customers into believing, through his recommendations, that they were purchasing investments that met their criteria, and misrepresented the nature of the investments to these customers.  Rather than investing in safe products, like government bonds or bank instruments, they were being put into materially different investments with significantly higher risk. 

The broker failed to tell each of the customers that they were investing in mutual funds and, thus, failed to explain their inherent risks.   of the investments to his customers, leading them to accept his recommendation without being able to assess the appropriateness of the proposed investment, and failed to ensure that his customers understood the risks of these investments.

This is FINRA Case #2008014053102.   [Disc. Actions for February]