The U.S. National Association of Securities Dealers has fined an analyst US$75,000 for circulating a false rumour about RF Micro Devices Inc.

Walter Piecyk a research analyst with Fulcrum Global Partners LLC in New York, called or sent instant messages to at least eight clients on Aug. 22, 2002, with a bearish rumour that chipmaker RF Micro was delaying shipments to Nokia Corp., its biggest client, the NASD said.

As he circulated the rumor, Piecyk also sold short a total of 3,000 shares of the firm.

RF Micro Devices’ stock price declined during the morning of August 22, 2002, by about 10%, due at least in part to the rumor, the NASD said. The company had to publicly deny the rumor in the afternoon and the market price recovered before the end of the day.

Trading volume in RF Micro Devices that day was over 23 million shares, more than double the average daily volume of over 10 million shares during the preceding six months.

Piecyk was fined US$75,000 for the gossip. In settling the case, Piecyk neither admitted nor denied the charges.

Piecyk covers wireless telecommunications companies, including Nokia, but not semiconductor manufacturers, such as RF Micro Devices, a supplier to telecommunications companies.