Description

The Securities and Exchange Commission today charged a Wall Street stockbroker with illegally accepting more than $1 million in undisclosed kickbacks for giving certain customers preferential access to lucrative IPOs, enabling them to reap major trading profits in the secondary markets.

The SEC alleges that Brian Hirsch subverted allocation policies and procedures at two brokerage firms where he worked on the wealth syndicate desk, making long-running arrangements with certain customers to give them larger allocations of coveted public offerings being marketed by the firms. In most instances, the customers sold their stock into the market as soon as possible to turn a substantial profit at the expense of the firms other brokerage customers and the issuers interests in raising capital from long-term investors.

Kickback schemes are pernicious and have no place in the securities markets, said Sanjay Wadhwa, Senior Associate Director for Enforcement in the SECs New York Regional Office. As alleged in our complaint, Hirsch lined his own pockets by secretly sharing in customer trading profits that he engineered in violation of his obligations to his employers.

The SECs complaint also charges Hirschs customer Joseph Spera, who allegedly made approximately $4 million in trading profits on the offering allocations he received from Hirsch. Spera allegedly paid Hirsch approximately $1 million in cash.

The U.S. Attorneys Office for the District of New Jersey has filed parallel criminal charges against Hirsch.

The SECs investigation, which is continuing, is being conducted by David Austin, Chevon Walker, Matthew Lambert, Stephen Johnson, and George Stepaniuk. The litigation is being led by Todd Brody, and the case is being supervised by Mr. Wadhwa. The SEC appreciates the assistance of the U.S. Attorneys Office for the District of New Jersey and the Federal Bureau of Investigation.

Comments
Order by: 
Per page:
 
  • There are no comments yet
   Comment Record a video comment
 
 
 
     
Related Feed Entries
The Securities and Exchange Commission has obtained a court order freezing more than $27 million in trading proceeds from allegedly illegal distributions and sales of restricted shares of Longfin Corp. stock involving the company, its CEO, and three other affiliated individuals. According to a complaint unsealed today in federal court in Manhattan, shortly after Longfin began trading on NASDAQ and announced the acquisition of a purported cryptocurrency business, its stock price rose dramatically…
13 days ago · From Securities Exchange Commission
The Securities and Exchange Commission today announced a whistleblower award of more than $2.2 million to a former company insider whose tips helped the agency open an investigation that led to an enforcement action. The whistleblower first reported the information to another federal agency and later provided the same information to the SEC. This is the first award paid under the safe harbor of Exchange Act Rule 21F-4(b)(7), which provides that if a whistleblower submits information to another…
14 days ago · From Securities Exchange Commission
As part of National Financial Capability Month, the Securities and Exchange Commission's Office of Investor Education and Advocacy (OIEA) is encouraging investors to go to Investor.gov to learn about the importance of saving and investing early, and to check out their investment professional before investing.Investor.gov also provides investors with free financial planning tools such as a compound interest calculator, information on investment products, risks and fees, as well as alerts on recen…
03.04.2018 · From Securities Exchange Commission
The Securities and Exchange Commission yesterday charged the pastor of one of the largest Protestant churches in the country and a self-described financial planner in a scheme to defraud elderly investors by selling them interests in defunct, pre-Revolutionary Chinese bonds. The SEC's complaint alleges that, in 2013 and 2014, Kirbyjon Caldwell, Senior Pastor at Windsor Village United Methodist Church in Houston, and Gregory Alan Smith, a self-described financial planner who the FinancialIndustr…
30.03.2018 · From Securities Exchange Commission
The Securities and Exchange Commission today announced charges and a preliminary injunction and asset freeze against Niket Shah, a New Jersey resident who stole more than $250,000 in a Ponzi scheme in which his friends and coworkers invested. Based on investor complaints, the SEC moved quickly to investigate and charge Shah.According to the SEC's complaint, unsealed on March 22, 2018, in federal court in Brooklyn, New York, Shah used Spark Trading Group, LLC to defraud more than 15 investors in…
23.03.2018 · From Securities Exchange Commission
Rate
0 votes
Info
Michael Blair
Time is your GREATEST asset
19.12.2017 (19.12.2017)
18 Views
0 Subscribers
Recommend
Tags