C.L. King & Associates, Inc., a broker-dealer, was fined US $750,000 by a hearing panel of the Financial Industry Regulatory Authority for misleading issuers during the redemption of certain debt securities regarding the status of certain joint accounts maintained by the principal of a hedge fund and terminally ill persons. The accounts were established purposely to facilitate the purchase of certain corporate debt securities at a discount that included a survivor benefit permitting the principal to redeem the securities upon the death of the joint tenant for the full principal amount. Additionally, the panel held that C.L. King and Gregg Miller, the firm’s anti-money laundering chief compliance officer, failed to implement an AML program reasonably designed to detect and report transactions regarding the liquidation of “billions of shares” of penny stocks by two of the firm’s customers.