Sam's Neighbor Has Just Inherited Some Bonds from His Uncle

Sam's neighbor has just inherited some bonds from his uncle. The neighbor, knowing that Sam is a registered representative with a brokerage firm, asks Sam if he would like to handle the sale of these securities. Sam agrees to do so and calls his existing clients with an offer to sell the bonds at a price that he researches to be the average "ask" price of dealers in the same bonds. In this situation:

A) Sam has engaged in the illegal practice of "front running."
B) Sam has engaged in the illegal practice of "selling away."
C) Sam has engaged in no illegal practices as long as he markets the bonds only to existing clients. This is referred to as a private placement.
D) Sam has engaged in no illegal practices since he is licensed to sell bonds and is doing so at an established "ask" price. Sam is a good neighbor.