The Financial Industry Regulatory Authority is barring J.P. Morgan Securities, LLC (JPM) vice president David Michael Gutman and ex-Meyers Associates LP Christopher John Tyndall from the securities industry for their alleged involvement in an insider trading scheme. According to the self-regulatory organization between March 2006 and October 2007, Gutman, who works in the firm’s conflicts office, improperly shared information with Tyndall that was non-public and material about at least 15 pending corporate merger and acquisition transactions
Tyndall then purportedly used the data to trade before at least six corporate announcements and recommended that customers and friends invest in the stock too. Tyndall and Gutman are longtime friends. The latter found out about the transactions from his job.
The inside information that Gutman provided Tyndall had to do with acquisitions involving Genesis HealthCare Corporation, American Power Conversion Corporation, First Data Corporation, Alliance Data Systems Corporation, SLM Corporation (Sallie Mae), and Cytyc Corporation. By settling, Tyndall and Gutman are not denying or admitting to the securities charges.
Illegal insider trading happens when the trade is made using nonpublic, material information about a security. Often, there may be a tipster who provides the insider information to the person who makes the trade or the person with access to the nonpublic, material information may be the person who also makes the trade. Regulators have brought insider trading cases against directors, corporate officers, brokers, investment advisers, and others.
Shepherd Smith Edwards and Kantas, LTD LLP represents investors with securities fraud claims and lawsuit. Contact our securities law firm today.
FINRA Bars J.P. Morgan Vice President and Broker Friend in Insider Trading Scheme, FINRA, January 16, 2014
Insider Trading, SEC.gov
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