The National Association of Securities Dealers has suspended two securities brokers for making unsuitable investment recommendations to customers, advising them about how to use proceeds obtained from cash-out home mortgage refinancing.James Kenas, of Coeur d'Alene, ID, and formerly a registered representative with WMA Securities, Inc., was suspended for six months after he advised his customers to purchase mutual fund shares, when the only funds available to them were from mortgaging their home. Mr. Kenas said the six-month suspension is inappropriate. "I definitely feel like I and other people are currently being singled out because NASD headquarters wants to make an issue out of this," he said. "Clients should have the freedom to position their assets any way they choose." Steve Morgan of Loveland CO, formerly associated with Washington Square Securities, also was suspended for six months and ordered to pay restitution of more than $15,000, which must be paid before he re-enters the securities business. NASD also filed a complaint against Jamie Engelking of Denver, CO, formerly with First Union Securities, charging that he recommended the purchase of a variable annuity using mortgage proceeds. Messages left for Mr. Morgan and Mr. Engelking were not returned by MortgageWire's deadline.

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