PaineWebber pays fine of $115,890 to state


PaineWebber Inc., the investment and brokerage firm, has agreed to pay a fine of $115,890 to the state of Maryland as part of a multi-state settlement concerning alleged violations of securities law.

The charges grew out of the sale of limited partnerships in the late 1980s and early 1990s.

The settlement will be incorporated in a consent order with the securities division of the Maryland attorney general's office and requires the firm to take steps to prevent future violations of securities law.

In a related consent order issued by the Securities and Exchange Commission, PaineWebber will pay $292.5 million in restitution nationally to investors. The firm also has agreed to pay a $5 million fine to the SEC and a total of $5 million to various states, which will be distributed according to the number of investors in each state and the amount of money invested.

PaineWebber was accused of using fraudulent sales practices in the sale of limited partnerships that invested in real estate, oil and gas and airplane leases and other investments from 1986 to 1992.

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