1. Josef Karloff, CFA, acts as liaison between Pinnacle Financial (an investment management firm) and Summit Inc．(an investment banking boutique specializing in penny stocks)．When Summit underwrites an IPO, Karloff routinely has Pinnacle issue vague statements implying that the firm has cash flows, financial resources, and growth prospects that are better than is the case in reality．This action is most likely a violation of the section of the Standards concerning: