Henderson stockbroker disciplined

Friday, March 12, 1999 | 10:27 a.m.

NASD Regulation Inc., the regulatory arm of the National Association of Securities Dealers in Washington, disclosed disciplinary measures against a number of firms and individuals for alleged violations of NASD rules and securities laws.

One Nevada case was disclosed.

John Milford Buob, a broker from Henderson, was barred and censured without admitting or denying findings that he participated in private securities transactions and failed to provide prompt written notification to his firm prior to participating in such transactions. Barring brokers prohibits them from trading until they are readmitted.

The findings also stated that, in connection with the offer or sale of limited partnership interests, Buob made misrepresentations to investors and failed to return investor funds when the terms of a contingency weren't met and that he recommended and induced public customers to purchase the security by means of fraudulent and deceptive devices and contrivances in that he represented to customers that proceeds of a limited partnership offering would be used to pay the purchase price of real estate and office building improvements.

The NASD found that Buob knew, or should have known, that only $64,399.43 of the necessary $212,500 had been raised and, therefore, the proceeds were insufficient to pay the purchase price of such real estate and were instead used to pay suppliers of goods or services consumed or used by Buob in the conduct of his business.

The settlement submitted by Buob becomes a part of his permanent record and prohibits him from discussing it with the media.

The Sun's Richard N. Velotta contributed to this report.