Category Archives: Cherry Picking

Michael Bressman-Former FCG Advisors Broker- Pleads Guilty to Investment Advisor Fraud-Chatham, NJ

September 2019- Chatham, NJ

According to publicly available records  Michael Bressman ,  a  currently unregistered stockbroker, who was last registered with FCG Advisors discloses a pending investigation, a pending civil event, a pending criminal event,  two prior regulatory events, a pending customer dispute, 4 prior customer disputes  and  terminations from employment.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In 9/2018 Bressman was charged with investment advisor fraud, a felony, in Federal Court in Massachusetts.  Case# 18cr 10315. In June 2019, Bressman pleaded guilty to defrauding clients by engaging in a cherry-picking scheme, according to a news release from the Department of Justice. Pursuant to the plea deal, the government recommended a sentence of 24-40 months.

In 9/2018 the United States Securities and Exchange Commission filed case # 1:18cv11925 in Federal Court with the United States District Court for the District of Massachusetts alleging the following against Michael A. Bressman “This case involves a fraudulent “cherry picking” scheme carried out by Bressman in his role as a securities broker.   From at least January 2012 through February 2018, Bressman  secretly misused his access to his customers’ brokerage accounts to enrich himself and two of his family members at the expense of his customers- most of whom were “Main Street” investors with relatively modest investment portfolios.   As a result of his deceptive scheme, Bressman received at least $700,000 in ill-gotten gains.  Cherry-picking occurs when a broker, who buys and sells securities on behalf of his brokerage customers, defrauds those customers by purchasing stock and then waiting to see whether the price of the stock goes up, or down, before allocating the trade.    If the stock goes up, the broker keeps the trade for himself or a set of “favored” accounts.   If the stock goes down, the broker puts the trades into other disfavored customer accounts.   In other words, the broker “cherry-picks” the profitable trades for himself or certain favored accounts, while giving unprofitable trades to his other customers. “ That case is still pending.

In February of 2018 the United States Securities and Exchange Commission initiated an investigation that is still pending.   “Mr. Bressman was accused of, among other things, misusing the firm’s allocation account in connection with his personal trades.”

Michael Bressman worked for FCG Advisors from 2/ 2000 until May 2018 when Bressman was discharged from FCG Advisors after allegations were made that accused him of, among other things, misusing the Firm’s allocation account in connection with his personal trades.

Bressman was discharged by Merrill Lynch in 1/2000 after it was alleged by a customer that he had traded her account without her authorization.

If you have questions about an investment account handled by Michael Bressman, contact us for a no charge consultation to learn about your legal options.

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

Wesley Perkins-World Tree Financial-Charged With Cherry-Picking Trades-Lafayette, LA

October 2018- Lafayette, LA

The FINRA records of  Wesley Kyle Perkins ,  a  former stock broker who is not currently registered and who was last employed by Purshe Kaplan Sterling Investments  disclose  that he is currently named in an civil action filed by regulators alleging ‘cherry picking’ and is the subject of one pending and 4 prior customer disputes

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In September 2018, the U.S. Securities and Exchange Commission (SEC) filed an action alleging that Wesley K. Perkins and his company World Tree Financial LLC operated a cherry picking scheme that defrauded World Tree Clients. According to the complaint, for 4 years Perkins reaped substantial profits at his client’s expense by cherry-picking trades, allocating favorable trades to favored accounts, including his own, and unprofitable trades to other accounts.

The SEC is seeking an injunction, disgorgement of illicit profits and civil penalties.

In a civil action pending in Lafayette Parish, customers of Perkins are seeking damages of $1.1 million for the mismanagement of their accounts.

Wesley Perkins was employed by Purshe Kaplan Sterling Investments from 12/2009-8/2018.

If you have losses in an account handled by Wesley Perkins  call for a no charge consultation to learn about your options for recovery of damages.

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

Wedbush Securities Discloses Over 100 Regulatory Violations

AUGUST 2018 UPDATEFINRA records for Wedbush Securities now disclose 103 final regulatory events and 2 pending regulatory events. Recent regulatory sanctions include:

  • April 2018- The CME Group fined Wedbush Securities $250,000 for violation of CBOT rules. CME operates an options and futures exchange in Chicago and New York City.
  • March 2018-New York Stock Exchange fine of $30,000 to resolve allegations related to inadequate supervisory systems.
  • February 2018-$1 million fine by US Securities and Exchange Commission , and other sanctions, including disgorgement, restitution, cease and desist injunction to resolve allegations  for violating the Customer Protection Rule between September 2014-January 2015. According to the SEC Wedbush failed to properly fund its Reserve Account and included inaccurate information in its financial reports.

OCTOBER 2017

On October 16, 2017, NYSE Regulation (New York Stock Exchange)  filed a Statement of Charges against Wedbush Securities and its co-founder Edward W. Wedbush. This brings the total number of regulatory complaints disclosed on the FINRA website, by Wedbush Securities, to 97.

A few of the prior disciplinary actions related to supervisory deficiencies include:

  • Wedbush Securities, et al Admin Proc File No. 3-16329, Aug 2016- The Securities and Exchange Commission upheld a FINRA order imposing a fine of $300,000 against Wedbush Securities and $50,000 against Mr. Wedbush for extensive and widespread supervisory deficiencies related to regulatory filings. Mr. Wedbush was suspended in all principal capacities for 31 days.
  • December 2015-Wedbush Securities consented to fines of $1.8 million in four related matters brought by the SEC and other regulators concerning deficient supervisory systems and procedures governing market access and anti-money laundering requirements.
  • In addition to the above, Wedbush Securities was fined over $2 million by regulators in more than a dozen separate actions brought by regulators during the decade before.

In the current regulatory matter Wedbush Securities is alleged to have participated in a systemic failure to oversee and supervise the trading activities of Mr. Wedbush which resulted in an allocation of profits and losses in his daily trading to accounts after the trade has been made, ie; after the fact.

CHERRY PICKING-This failure of oversight failed to protect investors and allowed “cherry picking” according to the NYSE. Cherry picking is when traders choose to allocate winning and losing trades to customer accounts as they decide at the end of the day. It is not uncommon for the trader who is cherry picking to allocate the winning trades to his own accounts and allocate the losing trades to other.

Wedbush Has Offices Nationwide 

Wedbush Securities is headquartered in Los Angeles, CA, and employs over 400 brokers in 100 branch offices, including :

  • Carlsbad, New Mexico
  • Dallas, Texas
  • Boca Raton, Miami and Sun City Center, Florida
  • Denver, Colorado Springs and Greeley, Colorado

If you have questions about how your account has been handled at Wedbush Securities, call to discuss your options.

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