Former Husker Tagge punished by financial industry watchdog

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OMAHA, Neb. (AP) A financial industry watchdog organization has fined former Nebraska quarterback Jerry Tagge for breaking rules about borrowing money from clients.

The Financial Industry Regulatory Authority fined Tagge $2,500 and suspended him for two months beginning July 19, said documents released in the organization's August report.

Tagge is executive vice president of Tagge Rutherford Financial Group, which has about $800 million in assets under management, according to the Omaha World-Herald ( ). He led the University of Nebraska to consecutive college football national championships in 1970 and 1971.

The report said Tagge consented to the fine and suspension without admitting or denying the findings. His attorney, John Shaw, issued a statement that said in part: ''We are pleased to reach a settlement which places this matter behind us permanently.''

The authority said Tagge borrowed $125,000 in 2009 from a customer who also was a close friend. Most of the money was to be used to pay Tagge's tax debts. The money was repaid in 2012.

The authority, which is a self-policing organization authorized by the Securities and Exchange Commission, bar financial advisers from borrowing from customers without approval under formal policies imposed by the advisers' firms.

Tagge knew his firm didn't allow its representatives to borrow from customers, the authority said in its disciplinary report. It said Tagge tried to hide the loan by arranging for relatives to sign promissory notes and turn over most of the money to him.