Former Smith Barney Analyst Settles Charges

A former Salomon Smith Barney analyst has agreed to a six-month suspension from the securities industry and a $100,000 fine to settle charges that she issued misleading research on Winstar Communications Inc., the NASD said Monday.

The market regulator said the analyst, Christine Gochuico, helped former star telecommunications analyst Jack Grubman draft bullish reports on Winstar, with which Salomon had a “significant” investment banking relationship, despite privately expressing doubts about the company’s prospects.

Without admitting or denying the allegations, Gochuico also agreed, for 18 months after the suspension, not to let her name appear on or be publicly associated with any broker- dealer research report, advertisement or sales literature, the NASD said.

Calls to Gochuico’s lawyer and Smith Barney, as the Citigroup Inc. research unit is now known, were not immediately returned.

The NASD said Gochuico helped Grubman from January to April 2001 draft research reports that contained “misleading statements and omissions and an unreasonable price target” for Winstar.

Citigroup in April 2003 agreed to pay $400 million, more than any other bank, as part of the $1.4-billion global settlement of charges that Wall Street stock analysts had issued biased research to win investment banking business.