RD Capital Group and Firm President Ordered to Pay $1 Million In Fines, Restitution for Fraudulent Markups of U.S. Treasury STRIPS

Firm President Is Also Suspended
WASHINGTON--(Business Wire)--
The Financial Industry Regulatory Authority (FINRA) announced today that it has
ordered Ramon Luis Dominguez, President of RD Capital Group in Puerto Rico, to
pay restitution of $950,000 plus interest to three customers victimized when
Dominguez and the firm charged undisclosed, excessive and fraudulent markups on
the sale of United States Treasury STRIPS.

Dominguez and the firm were fined $50,000. Dominguez was suspended as a
principal for 30 days and in all capacities for five business days. Dominguez
and the firm agreed to the sanctions to resolve charges first brought against
them in a FINRA complaint in November 2007.

"Brokers are required to charge fair commissions and mark-ups when filling
customer orders, taking into account all relevant circumstances associated with
the transactions," said Susan L. Merrill, FINRA Executive Vice President and
Chief of Enforcement. "The undisclosed markups charged in this case - which
involved U.S. Treasuries, the most liquid securities available in the market -
were so excessive as to be fraudulent."

FINRA found that between August 2005 and October 2005, RD Capital and Dominguez
sold over $34 million in U.S. Treasury STRIPS to the three customers, charging
total markups of $1,289,727. STRIPS, an acronym for Separate Trading of
Registered Interest and Principal Securities, are zero-coupon U.S. Treasury
fixed-income securities generally sold at a significant discount to face value.
FINRA found that Dominguez failed to disclose to his customers the amounts of
the markups, which ranged from 3.5 percent to 6.2 percent. These markups were
excessive and fraudulent because the amount charged was greater than the amount
warranted by market conditions, the cost of executing the transactions and the
value of the services rendered to the customers.

FINRA rules require firms to ensure that customers are fairly charged for these
types of transactions, taking into consideration all relevant factors, including
the expense associated with effectuating the transaction; the reasonable profit
earned by the broker or dealer; the expertise provided by the broker or dealer;
the total dollar amount of the transaction; the availability of the financial
product in the market; the price or yield of the instrument; the resulting yield
after the subtraction of the markup compared to the yield on other securities of
comparable quality, maturity, availability, and risk; the role played by the
broker or dealer.

In concluding these settlements, RD Capital and Dominguez neither admitted nor
denied the allegations in the complaint.

Investors can obtain more information about, and the disciplinary record of, any
FINRA-registered broker or brokerage firm by using FINRA's BrokerCheck. FINRA
makes BrokerCheck available at no charge. In 2008, members of the public used
this service to conduct 11.6 million reviews of broker or firm records.
Investors can access BrokerCheck at www.finra.org/brokercheck or by calling
(800) 289-9999.

FINRA, the Financial Industry Regulatory Authority, is the largest independent
regulator for all securities firms doing business in the United States. FINRA is
dedicated to investor protection and market integrity through comprehensive
regulation. FINRA touches virtually every aspect of the securities business -
from registering and educating all industry participants to examining securities
firms; writing and enforcing rules and the federal securities laws; informing
and educating the investing public; providing trade reporting and other industry
utilities; and administering the largest dispute resolution forum for investors
and firms.

For more information, please visit our Web site at www.finra.org

Financial Industry Regulatory Authority (FINRA)
Herb Perone, 202-728-8464

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