O.C. Broker-Dealer Expelled From NASD

Mission Viejo-based Coastline Financial Inc. was expelled from the National Assn. of Securities Dealers, and its owner was barred from the securities industry for allegedly misleading investors who bought $1.1 million worth of notes. In addition, the broker-dealer and its owner, Donald Allyson Williams, were fined $50,000 and ordered to repay any remaining notes, plus interest, according to the NASD, which registers and oversees brokers and their companies. The notes were issued by Southern California Mergers & Acquisitions Inc., a company controlled by Williams, the NASD said. That company sold oil and gas properties to Onyx Oil & Gas Management Inc., which Williams and his wife owned, according to the regulator. NASD accused Williams and Coastline of falsely telling 48 investors that the promissory notes were secured by AAA-rated U.S. government bonds. It also accused them of failing to disclose that Southern California Mergers was insolvent and couldn’t repay the debts in case of default. Williams said he was “not at liberty” to comment.