Fortress Biotech, Securities Investigation, JMP Securities, New York, NY
According to public records on October 30, the Financial Industry Regulatory Authority (FINRA) reportedly suspended and fined a JMP Securities analyst $20,000 for an alleged conflict of interest.
The analyst, who was reportedly registered with JMP Securities in New York, was writing research reports on a company with which he was allegedly engaged in employment discussions.
According to the Letter of Acceptance, Wavier & Consent, in February 2018, the analyst purportedly held advanced employment discussions with the chairman of one of the 38 companies he followed in the biotechnology sector. In March 2018, the analyst reportedly received an offer letter from the company and he accepted the offer shortly thereafter.
During the same time period, he allegedly co-authored five research reports on the company without disclosing in any of the reports the material conflict of interest arising from his employment discussions. One of the reports reiterated his market outperform rating, according to the AWC.
Within two weeks after he received the employment offer, his firm allegedly published three more reports reportedly co-authored by the analyst about the company, according to FINRA.
According to reports, the individual has held the title of entrepreneur in residence at Fortress Biotech since May 2018.
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