Credit Suisse Fined $1.2M Over Unsuitable Investments

An NASD arbitration panel found that Credit Suisse unit Donaldson Lufkin & Jenrette had wrongly advised Rafael and Corina Montalvo to liquidate their bond portfolio and invest the money in aggressive proprietary managed accounts and hedge funds.

Credit Suisse Group has been ordered to pay $1.2 million to a retired Florida couple after an NASD arbitration panel of the found that Credit Suisse unit Donaldson Lufkin & Jenrette had wrongly advised Rafael and Corina Montalvo to liquidate their bond portfolio and invest the money in aggressive proprietary managed accounts and hedge funds. The panel had found DLJ liable for negligence and for advising unsuitable investments and for failure to properly supervise employees adequately.