Folger Nolan Fleming Douglas Incorporated

Allegations: MSRB RULES G:17 AND G-30(A): FROM OCTOBER 1, 2008 THROUGH DECEMBER 31, 2008, IN SEVEN TRANSACTIONS, THE FIRM PURCHASED MUNICIPAL SECURITIES FOR ITS OWN ACCOUNT FROM A CUSTOMER AND/OR SOLD MUNICIPAL SECURITIES FOR ITS OWN ACCOUNT TO A CUSTOMER AT AN AGGREGATE PRICE (INCLUDING ANY MARK-DOWN OR MARK-UP) THAT WAS NOT FAIR AND REASONABLE, TAKING INTO CONSIDERATION ALL RELEVANT FACTORS, INCLUDING THE BEST JUDGMENT OF THE BROKER, DEALER, OR MUNICIPAL SECURITIES DEALER AS TO THE FAIR MARKET VALUE OF THE SECURITIES AT THE TIME OF THE TRANSACTION AND OF ANY SECURITIES EXCHANGED OR TRADED IN CONNECTION WITH THE TRANSACTION, THE EXPENSE INVOLVED IN EFFECTING THE TRANSACTION, THE FACT THAT THE BROKER, DEALER, OR MUNICIPAL SECURITIES DEALER IS ENTITLED TO A PROFIT, AND THE TOTAL DOLLAR AMOUNT OF THE TRANSACTION. Status: Final Sanction Detail: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE, THE FIRM IS CENSURED, FINED $10,000 AND ORDERED TO PAY $3,422.40, PLUS INTEREST, IN RESTITUTION TO INVESTORS. THE FINE WAS PAID IN FULL ON 10/26/2011. Summary: FOLGER NOLAN FLEMING DOUGLAS INCORPORATED IS A DUAL REGISTERED BROKER/DEALER AND INVESTMENT ADVISER. THE REGULATORY ACTION WAS IN RELATION TO BROKER/DEALER ACTIVITIES AND DID NOT INVOLVE INVESTMENT ADVISORY CLIENTS.