SEC Brings Fraud Charges Against FCG Advisors Broker Michael Bressman

SEC Brings Fraud Charges Against FCG Advisors Broker Michael Bressman
Michael Allan Bressman (CRD#: 873973, Chatham, New Jersey) has been a registered representative of FCG Advisors, LLC from February 4, 2000 to May 16, 2018. The Securities and Exchange Commission (“SEC”) filed a Complaint against Bressman on September 12, 2018 (Case# 1:18cv11925) that alleged Bressman committed securities fraud through a cherry picking scheme while registered with FCG Wealth Management, LLC and FCG Advisors, LLC.

SEC Alleged FCG Advisors' Michael Bressman Committed Fraud

The SEC’s Complaint alleged that Bressman used his status of securities broker to engage in a cherry picking scheme from January 2012 to February 2018. Apparently, during that time, Bressman concealed that he was accessing customers’ brokerage accounts in order to generate financial gains while causing customers harm. The SEC alleged that Bressman accumulated illicit gains totaling $700,000.00.
According to the SEC, cherry-picking involves a broker who purchases and sells securities for customers, and then commits fraud through determining the movement in stock values prior to allocating the trades to the customers’ accounts. Chery picking typically involves a broker allocating the profitable trades to the personal account instead of the customer’s account, while allocating the unprofitable trades to the customer’s account.
The Complaint stated that Bressman often bought a large quantity of stocks through an allocation account or via block trading. Bressman apparently purchased the stocks even though he had not specified at that time whether the trades would be designated for his personal account or the accounts of his customers. Bressman allegedly waited for information about the movement in the stock prices during the day before making decisions about which account would be affected by the trade.
Bressman was accused of allocating profitable trades to either his personal account or a family account set up for the benefit of his sister-in-law and her husband. Bressman apparently designated the unprofitable trades to customer accounts, where those positions were held by customers for a longer period of time. However, profitable trades allocated to Bressman’s account were closed out the day they were designated for his personal account, enabling Bressman to recognize a locked-in gain.
SEC stated that Bressman avoided losses and misappropriated profits by way of his cherry picking scheme. As a result, SEC charged Bressman with violating Section 10(b) of the Securities Exchange Act, Rule 10b-5(a), Rule 10b-5(c), and Section 17(a)(1) and 17(a)(3) of the Securities Act.
FINRA BrokerCheck discloses a chronology of Bressman’s alleged misconduct. Particularly, On October 31, 2002, the New York Stock Exchange (“NYSE”) issued a Hearing Panel Decision #02-184 fining Bressman $15,000.00 and barring him for two months for unauthorized trading. Bressman was found liable for trading in Merrill Lynch customer accounts without generating the customer’s written consent in violation of Rule 408(a) and 408(b). On January 5, 2003, the Florida Bureau of Securities issued an Order revoking Bressman’s registration for having been suspended by NYSE.
On February 13, 2018, the SEC launched its investigation into Bressman’s alleged fraudulent trading practices. The Investigation was reportedly focused on Bressman failing to appropriately use the firm’s allocation accounts in relation to the trades Bressman allocated for his personal account. On May 4, 2018, FCG Advisors, LLC discharged Bressman for misusing FCG’s allocation accounts in reference to Bressman’s personal trading.
In addition, four customer disputes have been filed concerning Bressman’s unauthorized trading in their investment accounts. Between April 1, 1987 and July 26, 2002, at least four customers contended that Bressman traded in their accounts without first obtaining their permission. All of those customer disputes were settled for a total of $190,000.00 in damages.

Investors who have incurred losses from Michael Allan Bressman are encouraged to contact Soreide Law Group at (888) 760-6552 for a free consultation. Our firm has recovered millions of dollars for investors who have suffered losses due to broker and brokerage firm misconduct. We represent clients on a contingency fee basis and advance all costs.