Category Archives: Insider Trading

Raymond J. Pirrello-Former Garden State Securities Broker-Named in SEC Insider Trading Complaint

UPDATE August 2016-FINRA suspended Raymond Pirrello for failing to respond to FINRA request for information. According to FINRA’s statement, if Pirrello fails to request termination of the suspension within 3 months of the date of the notice of suspension he will be automatically barred on October 14, 2016, from association with any FINRA member in any capacity.

FINRA records report that on July 7, 2016, the U S Securities and Exchange Commission filed an insider trading injunction against former  Garden State Securities  stock broker Raymond J. Pirrello, Jr., age 40 of Sparta, New Jersey.

Thomas W. Avent, Jr. , 63,  of Atlanta, who is a tax partner with KPMG LLP, one of the world’s largest accounting firms, and Lawrence J. Penna, age 72, of Edgewater, New Jersey, a long time friend of Pirrello, are also named in the complaint  filed in the U.S. District Court for the Northern District of Georgia. SEC v. Pirello, et al, Case 1:16-cv-02459-SCJ.

The complaint alleges that in 2011 and 2012 Avent, who was working as an acquisition attorney, obtained highly confidential nonpublic information about impending acquisitions of Radiant Systems, Inc., Brightpoint  and Midas Inc. and illegally tipped off PIrrello who passed on the illegal tip to his long time friend Penna.

The complaint further alleges that Penna traded the in the securities of each of the three companies and realized trading profits. Penna then made payments to Pirrello and Avent.

The SEC seeks an injunction prohibiting the defendants from further violations of the securities law and a disgorgement of the trading profits as well as civil penalties.

Pirrello was employed by Garden State Securities in Hackensack, New Jersey, from 8/2008- 5/2016. He was previously employed by The Concord Equity Group and J.P. Turner & Co.

We are currently evaluating potential cases for investors who suffered losses in accounts handled by Raymond J. Pirrello.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Raymond Pirrello of Garden State Securities Investigated by Securities Regulator

UPDATE July 2016Pirrello named in insider trading complaint filed by the Securities and Exchange commission. See this for details. 

UPDATE June 2016-Former Garden State Securities stock broker Raymond J. Pirrello is not currently registered with any FINRA firm according to FINRA records as on June 27th, 2016.

Original Post —  March 10, 2016

FINRA records report that the U S Securities and Exchange Commission is currently investigating Garden State Securities  stock broker Raymond J. Pirrello, Jr. regarding alleged potential violations of sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 there under.

FINRA records also report that Pirrello has been named in 9 customer disputes that have been resolved.

Pirrello has been employed by Garden State Securities in Hackensack, New Jersey, since 8/2008. He was previously employed by Concord Equity Group and J.P. Turner & Co.

If you have questions about an account handled by Raymond J. Pirrello, call to speak with an experienced securities attorney.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Delray Beach, FL. Man Pleads Guilty to Insider Trading on Tip From Stockbroker

March 9, 2016-

Jay Fung, 42, of Delray Beach, FL, pleaded guilty to an information which charged him with conspiracy to commit securities fraud . Fung admitted to an insider trading scheme involving Gilead Science’s $11 billion acquisition of Pharmasset, Inc.

According to Reuters, former stock broker Kevin Dowd learned of the upcoming merger from a Pharmasset director who was the largest customer in Dowd’s branch. Dowd then tipped off Fung about the upcoming merger three days before it was announced in November 2011. Fung purchased Pharmasset shares and options prior to the public announcement which generated illegal profits in excess of $250,000.

Dowd pleaded guilty in September 2013 to a criminal conspiracy charge. Kevin L. Dowd was registered with Morgan Stanley in Aventura, FL, form 6/2009-1/2014, according to FINRA records.

Fung faces up to five years in the sentencing which is set for June 20, 2016.

US Attorney’s Office Press Release.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Gary Williky Named in Securities Fraud Action- Colleyville, Texas

March 2, 2015-Colleyville, Texas

The U.S. Securities & Exchange Commission (SEC) filed a complaint seeking an injunction alleging that Gary S. Williky of Colleyville, Texas perpetrated an illegal market manipulation and insider trading scheme involving the stock of Imperial Petroleum, Inc., an Evansville, Indiana based public companyIn the complaint the SEC alleges that Williky is a recidivist market manipulator.

The SEC complaint seeks an injunction, disgorgement and civil penalties.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Stephen Gray of Houston Sentenced for Securities Fraud

January 16, 2015-Houston, TX

The FBI announced that Stephen B. Gray, 57, of Houston, Texas, was sentenced to 46 months in federal prison for securities fraud in an insider trading scheme. He was also ordered to pay a fine of $7,500.

According to the release, Gray traded on insider information that he learned from his employment at an investor relations firm in Houston from September 2009-May 2012 and earned over $300,000 from the scheme.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Wells Fargo Compliance Officer Sued By SEC For Altering Document

Washington, DC

An insider trading charge involving Burger King, Wells Fargo Advisors and a former broker has gone from bad to worse.  In September 2012, the Securities & Exchange Commission charged Waldyr Da Silva Prado Neto in an insider trading scheme which reaped over $2 million by trading Burger King Holdings ahead of its acquisition. The SEC said that Wells Fargo compliance missed multiple red flags, including the fact that Mr. Prado and his customers represented the top four positions in Burger King firmwide.

Last month Wells Fargo paid $5 million in penalties to resolve the matter. In January, the SEC ordered Mr. Prado to pay $5.6 million. He has fled to Brazil.

In the recently filed action, the SEC alleges that former Wells Fargo compliance officer Judy K. Wolf is the person who should have spotted the red flags and that she intentionally altered a trading review after she found out that the SEC was bringing insider trading charges based upon her original trading review. By altering the document, Wolf made it appear that she performed a more thorough review in 2010 than she actually had, according to the complaint.

Rex Securities Law provides nationwide representation to investors seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.  Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900