The U.S. Securities and Exchange Commission has sanctioned Baltimore-based Legg Mason Wood Walker Inc. for violating rules in the municipal securities market.

The SEC has issued an order making findings, imposing remedial sanctions, and a cease and desist order against Legg Mason, which trades as an exchangeable share on the Toronto Stock Exchange, Thomas Daly, Jr. and Joseph Sullivan.

The order censures Legg Mason, and orders it to cease and desist from committing or causing any violations of Municipal Securities Rulemaking Board rules, and orders it to pay a civil penalty of US$50,000. It also censures Daly and Sullivan, and requires them to each pay a civil penalty of US$10,000. Legg Mason, Daly and Sullivan consented to the order, without admitting or denying its findings.

The SEC found that from June 30, 1994, through June 30, 1998, Legg Mason willfully violated MSRB rules, and it found Daly and Sullivan responsible for those violations regarding its participation in advance refundings and initial offerings of municipal securities. It also found that they failed to supervise the conduct of Legg Mason’s municipal securities business and the municipal securities activities of its reps.