A $150,000 fine was levied upon Wells Investment Services Inc. and Leo Wells, its president, because it substituted fun entertainment events like a "beach bash" for traditional broker/dealer conferences, Bloomberg News reports.

The fine, handed down by the National Association of Securities Dealers, stems from conferences in Arizona and Florida in 2001 and 2002 during which entertainment and travel perks – ones that barely, if at all, related to business and financial education – took place.

Entertainment, gifts and other noncash compensation cannot be offered to broker/dealers by real investment trusts such as Wells, according to NASD bylaws.

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