New Jersey Broker Michael Bressman – FCG Advisors – Securities Fraud Investigation
According to a press announcement, the SEC has charged Michael Bressman, a New Jersey broker, with fraudulently making at least $700,000 by cherry-picking trades at the expense of his clients.
Between 2012 and February 2018, Bressman allegedly misused his access to an “allocation” account to place trades, transferring the profitable ones to his own account and the accounts of two family members, according to the SEC charges.
Bressman then allegedly put the unprofitable trades in his other clients’ accounts, many of which were retirement accounts, according to the regulator.
The SEC has charged Bressman with violating both federal and SEC antifraud provisions and is seeking the return of the allegedly ill-gotten gains with interest, penalties and a permanent injunction, according to the SEC’s press announcement.
According to the SEC, data analysis designed to detect suspicious patterns of trading gave Bressman away.
The U.S. Attorney’s Office for the District of Massachusetts has filed criminal charges against Bressman in a parallel action.
According to his BrokerCheck profile, Bressman was registered with FCG Advisors in Chatham, NJ from February 2000 until he was fired in May 2018 after “allegations were made that accused him of, among other things, misusing the Firm’s allocation account in connection with his personal trades.”
In addition to the SEC’s investigation, Bressman’s broker report lists 8 disclosure events on his record, including two employment separations, 2 regulatory events, and 4 customer disputes.
Failure to Supervise
The White Law Group is investigating the liability that Bressman’s employer may have for losses sustained by his clients. Brokerage firms are required to adequately supervise their agents to ensure they are complying with FINRA rules. If it is determined that the broker dealer failed to supervise their agent, they can be held responsible for losses in a FINRA arbitration claim.
If you suffered losses investing with broker Michael Bressman, the attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.
The foregoing information, which is all publicly available, is being provided by The White Law Group. 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 Franklin, Tennessee.
For more information on The White Law Group, please visit www.whitesecuritieslaw.com.