The Financial Industry Regulatory Authority is barring a former Piper Jaffray & Co. broker from the securities industry. The broker was accused of insider trading. He has agreed to the ban and has settled the FINRA charges without denying or admitting wrongdoing.
From 2007 until this July, the broker worked in Piper Jaffray & Co.’s investment banking department. Piper Jaffray was the confidential adviser of SoftBrands while the company considered potential buyers. Those at the advisory firm with access to information about the acquision were not allowed to buy SoftBrands shares. Yet on June 4 and 5, this broker bought 27,161 SoftBrands shares. On June 12, when SoftBrands announced its acquisition by Golden Gate Capital and Infor Global Solutions-an $80 million transaction. SoftBrands’s stock price almost doubled.
The shares at issue, previously bought at $.42 and.$.45 per share, were then sold at $.89 per share resulting in a profit of $11,955 on the transactions.
FINRA accused the broker of not only engaging in insider trading but also of using an undisclosed securities account at another broker-dealer so Piper Jaffray & Co. wouldn’t find out he was trading in SoftBrands stock.
FINRA says that its market regulation department is committed to “surveilling the markets” for insider trading and acting quickly to sanction wrongdoers by making them leave the securities industry.
The broker’s name is being withheld at the request of his attorney who stated that the broker has paid a heavy price because of the actions in question and now wants to move on with his life outside the securities industry.
Our stockbroker fraud law firm represents many investors who have suffered losses because of improper actions by financial firms and their agetns, including also margin account abuse, misrepresentations, omissions, improper trade executions or failures to execute, breach of fiduciary duty or some other form of misconduct.
Related Web Resources:
FINRA Bars California Broker for Insider Trading, FINRA, November 4, 2009
Insider Trading, Securities and Exchange Commission