According to the New Haven Register, a former Connecticut investment advisor pled guilty to one count of securities fraud in connection with a “cherry-picking” scheme. Noah Myers’ alleged scheme cost investors more than $2 million.
“Cherry picking” is a fraudulent trading practice in which trades are executed but not assigned to a specific account at the time the order was placed. By the time the trade is assigned to an account it is already known if the trade was successful or not. Myers allegedly made $460,000 executing the fraudulent trades.
The New Haven Register reports that Myers has been under investigation by the Securities and Exchange Commision since 2012. He faces up to 20 years in prison and a maximum fine of $5 million.
According to BrokerCheck, Meyers was a registered representative in connecticut with Citigroup Global Markets from 02/1994 – 02/2008 and Purshe Kaplan Sterling Investments from 02/2008 – 04/2012.
Registered brokers have a responsibility to make suitable investment recommendations. When brokers engage in prohibited trading practices they can be liable for investment losses through FINRA dispute resolution claim.
To determine if you may be able to file a FINRA claim to recover your losses, please call The White Law Group at (312)238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.