HIGHLIGHTS OF DEVELOPMENTS IN INTERNATIONAL SECURITIES MARKET SEC Uncovers Cherry-Picking Scheme, Charges Securities Act of 1933, which prohibits Investment Adviser Behind It obtaining money or property by means of any 25th January, 2017: The Securities and Exchange material misstatement or omission in the offer Commission (SEC) uncovered an illegal or sale of securities. Without admitting or scheme through its data analysis used to denying the SEC’s findings, Morgan Stanley and detect suspicious trading patterns. The SEC filed Citigroup each agreed to pay disgorgement of fraud charges in federal district court against plus interest and penalty of for a total of more Michael J. Breton and his firm Strategic Capital than $5.9 million combined. Management, alleging they defrauded clients out Source: https://www.sec.gov/news/pressrelease/2017-30.html of approximately $1.3 million. Breton allegedly placed trades through a master brokerage Brokerage Firm Charged With Gatekeeper account and then allocated profitable trades to Failures Related to Pump-and-Dump Scheme himself while placing unprofitable trades into 25th January 2017: The Securities and Exchange the client accounts. Commission today announced administrative Source: proceedings against New York-based brokerage firm Windsor Street Capital and its former laundering officer John D. Telfer. The Morgan Stanley, Citigroup Charged With SEC’s Enforcement Division alleges that the Misleading Investors About Forex Trading firm, formerly named Meyers Associates L.P., Program. failed to file Suspicious Activity Reports (SARs) 24h January, 2017: The Securities and Exchange for $24.8 million in suspicious transactions, Commission The Securities and Exchange including those occurring in accounts controlled Commission today announced that Morgan by microcap stock financiers Raymond H. Stanley Smith Barney and Citigroup Global Barton and William G. Goode who are Markets have agreed to pay more than $2.96 separately charged today by the SEC with million apiece to settle charges that they made conducting a pump-and-dump scheme. The false and misleading statements about a foreign SEC’s Enforcement Division alleges that Meyers exchange trading program they sold to investors. Associates and Telfer should have known about The SEC’s orders find that Morgan Stanley and the suspicious circumstances behind many Citigroup violated Section 17(a)(2) of the transactions occurring in customer
HIGHLIGHTS OF DEVELOPMENTS IN INTERNATIONAL SECURITIES MARKET SEC Uncovers Cherry-Picking Scheme, Charges Investment Adviser Behind It 25th January, 2017: The Securities and Exchange Commission (SEC) uncovered an illegal scheme through its data analysis used to detect suspicious trading patterns. The SEC filed fraud charges in federal district court against Michael J. Breton and his firm Strategic Capital Management, alleging they defrauded clients out of approximately $1.3 million. Breton allegedly placed trades through a master brokerage account and then allocated profitable trades to himself while placing unprofitable trades into the client accounts. Source: Morgan Stanley, Citigroup Charged With Misleading Investors About Forex Trading Program. 24h January, 2017: The Securities and Exchange Commission The Securities and Exchange Commission today announced that Morgan Stanley Smith Barney and Citigroup Global Markets have agreed to pay more than $2.96 million apiece to settle charges that they made false and misleading statements about a foreign exchange trading program they sold to investors. The SEC’s orders find that Morgan Stanley and Citigroup violated Section 17(a)(2) of the Securities Act of 1933, which prohibits obtaining money or property by means of any material misstatement or omission in the offer or sale of securities. Without admitting or denying the SEC’s findings, Morgan Stanley and Citigroup each agreed to pay disgorgement of plus interest and penalty of for a total of more than $5.9 million combined. Source: https://www.sec.gov/news/pressrelease/2017-30.html Brokerage Firm Charged With Gatekeeper Failures Related to Pump-and-Dump Scheme 25th January 2017: The Securities and Exchange Commission today announced administrative proceedings against New York-based brokerage firm Windsor Street Capital and its former laundering officer John D. Telfer. The SEC’s Enforcement Division alleges that the firm, formerly named Meyers Associates L.P., failed to file Suspicious Activity Reports (SARs) for $24.8 million in suspicious transactions, including those occurring in accounts controlled by microcap stock financiers Raymond H. Barton and William G. Goode who are separately charged today by the SEC with conducting a pump-and-dump scheme. The SEC’s Enforcement Division alleges that Meyers Associates and Telfer should have known about the suspicious circumstances behind many transactions occurring in customer