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Ex-Deutsche Bank Analyst Banned Over Rating at Odds With Opinion

  • Agency says Grom sought to maintain relationship with Big Lots
  • Regulator cites communications with colleagues, hedge funds

A former Deutsche Bank AG analyst once ranked among the best in the U.S. will pay a $100,000 penalty and be banned from the securities industry for a year to settle a regulator’s claims that he issued a buy recommendation at odds with his personal opinion.

Charles Grom recommended buying shares of discount retailer Big Lots Inc. in a March 29, 2012, report while telling colleagues internally that he didn’t downgrade the company because he wanted to maintain his relationship with its management, the Securities and Exchange Commission said in a statement Wednesday. Grom agreed to resolve the SEC’s allegations without admitting or denying wrongdoing.