Alleged Manipulative Trading of Securities Lands Firm and Brokers in FINRA Complaint

Meyers Associates, L.P., George Johnson, Joseph Mahalick and Christopher Wynne all named in FINRA complaint

In the June 2015 FINRA Disciplinary Actions report, one firm and three brokers were named in a FINRA complaint alleging numerous violations that include manipulative trading of securities.

According to the complaint, Meyers Associates, L.P., George Johnson, Joseph Mahalick and Christopher Wynne were all named as respondents. The report alleges that Johnson willfully violated SEC rules by soliciting some customers to buy stocks while at the same time soliciting others to sell the same stock, all at inflated prices. As part of this scenario, both Johnson and Wynne allegedly provided firm customers with information regarding the stocks that contained misleading information. The stock was a penny stock called Ice Web, Inc. (OTCBB.IWEB)

Johnson is also alleged to have encouraged customers to purchase shares of certain stock while he simultaneously sold both his and his wife’s shares of the same stocks. Whether Johnson’s failure to disclose this fact was intentional, or simply reckless, the FINRA complaint considers this as his willful violation of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. Johnson is further alleged to have disclosed confidential information regarding a prospective offering of shares without permission from his firm and a confidentiality agreement signed by the customers with whom he shared the information.

In addition, Johnson, Mahalick and Wynne allegedly intentionally misidentified the broker of record on information submitted to the firm in order to cover up Johnson’s violations of state registration requirements.

Finally, the complaint alleges that both the firm and Wynne failed to supervise Johnson and the firm’s Chicago office. Ultimately, it alleges that the firm’s AML policies and procedures were not sufficiently executed in order to effectively detect and report suspicious activity relating to the manipulative trading of securities.

If you’re an investor who has done business with Meyers Associates, George Johnson, Joseph Mahalick or Christopher Wynne – or any other firm or financial adviser you believe has violated your rights – you may be able to recover losses suffered by their actions. Securities arbitration may help you recover losses due to broker misconduct, and it is important for you to understand your rights.

With Silver Law Group you’ll find experienced securities attorneys committed to recovering investment losses due to stockbroker misconduct. With lawyers admitted to practice in New York and Florida – representing investors nationwide – you can expect a complimentary consultation and a case handled on a contingent fee basis, meaning you don’t pay legal fees unless Silver Law Group is successful. Contact us today to schedule your free consultation and discuss your legal rights.