The NASD announced that it has imposed a $408,000 fine on San Diego-based First Allied Securities for allowing and aiding three hedge fund customers to take part in market timing transactions. NASD also ordered the firm to pay $326,500 to compensate the affected funds.

Gary Ferrarro, a First Allied salesman, was fined $136,000 because he was the broker for the three hedge fund customers. In addition, he has been suspended for nine months.

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