{"id":6063,"date":"2018-06-08T15:12:33","date_gmt":"2018-06-08T19:12:33","guid":{"rendered":"https:\/\/www.silverlaw.com\/blog\/?p=6063"},"modified":"2018-06-08T15:12:33","modified_gmt":"2018-06-08T19:12:33","slug":"nyse-brings-action-against-edward-wedbush-and-wedbush-securities","status":"publish","type":"post","link":"https:\/\/www.silverlaw.com\/blog\/nyse-brings-action-against-edward-wedbush-and-wedbush-securities\/","title":{"rendered":"NYSE Brings Action Against Edward Wedbush and Wedbush Securities"},"content":{"rendered":"<p>Wedbush Securities is in hot water with the SEC, FINRA, and the New York Stock Exchange for a scheme involving its owner and founder, Edward Wedbush. Mr. Wedbush was allegedly employing a manipulative trading scheme involving over 70 accounts at Wedbush Securities. The trading practice, often referred to as \u201ccherry-picking,\u201d occurs when \u201ctraders choose to allocate the best performing trades to their own or preferred accounts.\u201d<\/p>\n<p>According to the NYSE\u2019s complaint, Mr. Wedbush\u2019s scheme involved instructing an employee to execute trades in a general account, and then he would later allocate the trades to various accounts that he controlled. No other employees at the firm were permitted to make these \u201cpost-execution allocations.\u201d Mr. Wedbush also executed these trades on a separate trading platform that was not used by other traders at the firm.<\/p>\n<p>The firm allowed Mr. Wedbush to exercise this discretion and had no procedures in place to ensure that the allocations were not made for improper purposes, like steering the more profitable trades into Mr. Wedbush\u2019s controlled accounts. NYSE alleges this lack of supervision violated both SEC and NYSE rules. The firm failed to establish and maintain adequate written supervisory procedures, and failed to retain adequate books and records. The firm\u2019s Co-Chief Compliance Officer even raised concerns over Mr. Wedbush\u2019s trading activity, yet the firm still \u201ctook no meaningful action.\u201d<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.silverlaw.com\/blog\/nyse-brings-action-against-edward-wedbush-and-wedbush-securities\/\"  title=\"Continue Reading NYSE Brings Action Against Edward Wedbush and Wedbush Securities\" class=\"more-link\">Continue reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Wedbush Securities is in hot water with the SEC, FINRA, and the New York Stock Exchange for a scheme involving its owner and founder, Edward Wedbush. Mr. Wedbush was allegedly employing a manipulative trading scheme involving over 70 accounts at Wedbush Securities. The trading practice, often referred to as \u201ccherry-picking,\u201d occurs when \u201ctraders choose to [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[607,577,583,580],"tags":[874,875,869],"class_list":["post-6063","post","type-post","status-publish","format-standard","hentry","category-failure-to-supervise","category-finra-disciplinary-actions","category-sec-actions","category-stockbroker-misconduct","tag-edward-wedbush","tag-regulatory-action","tag-wedbush-securities"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>NYSE Brings Action Against Edward Wedbush and Wedbush Securities &#8212; Securities Arbitration Lawyers Blog &#8212; June 8, 2018<\/title>\n<meta name=\"description\" content=\"Wedbush Securities is in hot water with the SEC, FINRA, and the New York Stock Exchange for a scheme involving its owner and founder, Edward Wedbush. Mr. &#8212; June 8, 2018\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.silverlaw.com\/blog\/nyse-brings-action-against-edward-wedbush-and-wedbush-securities\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"NYSE Brings Action Against Edward Wedbush and Wedbush Securities &#8212; Securities Arbitration Lawyers Blog &#8212; June 8, 2018\" \/>\n<meta name=\"twitter:description\" content=\"Wedbush Securities is in hot water with the SEC, FINRA, and the New York Stock Exchange for a scheme involving its owner and founder, Edward Wedbush. 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Mr. &#8212; June 8, 2018","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.silverlaw.com\/blog\/nyse-brings-action-against-edward-wedbush-and-wedbush-securities\/","twitter_card":"summary_large_image","twitter_title":"NYSE Brings Action Against Edward Wedbush and Wedbush Securities &#8212; Securities Arbitration Lawyers Blog &#8212; June 8, 2018","twitter_description":"Wedbush Securities is in hot water with the SEC, FINRA, and the New York Stock Exchange for a scheme involving its owner and founder, Edward Wedbush. Mr. &#8212; June 8, 2018","twitter_misc":{"Written by":"Silver Law Group","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.silverlaw.com\/blog\/nyse-brings-action-against-edward-wedbush-and-wedbush-securities\/","url":"https:\/\/www.silverlaw.com\/blog\/nyse-brings-action-against-edward-wedbush-and-wedbush-securities\/","name":"NYSE Brings Action Against Edward Wedbush and Wedbush Securities &#8212; Securities Arbitration Lawyers Blog &#8212; June 8, 2018","isPartOf":{"@id":"https:\/\/www.silverlaw.com\/blog\/#website"},"datePublished":"2018-06-08T19:12:33+00:00","author":{"@id":"https:\/\/www.silverlaw.com\/blog\/#\/schema\/person\/de64d999508b1ad10d608a99f0d2e752"},"description":"Wedbush Securities is in hot water with the SEC, FINRA, and the New York Stock Exchange for a scheme involving its owner and founder, Edward Wedbush. 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