Connecticut Brokerage Aide Must Pay $58,825 To Settle Charges He Made Unauthorized Securities Trades
The U.S. District Court for the Southern District of New York has ordered a Connecticut man to pay $58,825 in civil penalties, prejudgment interest, and disgorgement to settle charges he engaged in a scheme to take part in unauthorized securities trades, which caused prices to rise dramatically.
The Securities and Exchange Commission says that Joshua Eudowe, who worked at a brokerage firm owned by his stepfather, Lawrence Goldstein, was not a registered representative but was brought in to help with marketing and research efforts.
In 2006, the SEC says that he made several unauthorized purchases of CreditRiskMonitor.com Inc. and FRMO Corp. stocks in client accounts of investment partnerships managed by his stepfather. Eudowe also is accused of hacking into the company Web site and using Goldstein’s password to engage in unauthorized securities trades without permission.
His unauthorized trading activities reportedly caused both FRMO and CRMZ stock prices to rise, exceeding 52-week highs. The SEC says that Eudowe sold several thousand shares at inflated prices using his own brokerage account.
As part of his settlement, Eudowe is barred from violations in the future. The Securities and Exchange Commission says that by agreeing to settle, Eudowe is not admitting to or deny wrongdoing.
Engaging in securities fraud is against the law, and if you are an investor that has lost money because of the fraudulent actions of a broker, a broker aide, or anyone else involved in the securities industry, contact Shepherd Smith Edwards and Kantas, LLP today.
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