Former Greenwich Financial Advisor Faces Prison Time for Fraudulent Trading Practices

  • Former Greenwich financial advisor sentenced to 21 months in prison for securities cherry-picking scheme
  • Over $2.7 million defrauded from more than 45 clients
  • Cherry picking involves executing trades without individual account permission
  • Glenn Capital’s code of ethics violated with retroactive allocations
  • Full restitution and three years of supervised release after prison term

A former investment advisor has been sentenced to 21 months in prison for a securities cherry-picking scheme that defrauded over 45 clients of $2.7 million. Jonathan Glenn, from Greenwich, Conn., pleaded guilty to securities fraud and was banned by the Securities and Exchange Commission last October. He will begin serving his sentence on Dec. 2. Cherry picking involves executing trades without individual account permission, and Glenn’s firm, Glenn Capital, engaged in block trades through an omnibus account for clients. The Justice Department states that Glenn allocated profitable trades to favored clients, family, and personal accounts while assigning unprofitable ones to nonfavored accounts, giving a false impression of fair allocation. He is required to make full restitution and serve three years of supervised release post-prison, including six months in home confinement.

Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about the case, including details about the crime, the consequences for the perpetrator, and the legal process. It also cites official sources such as the Justice Department and the Securities and Exchange Commission.
Noise Level: 3
Noise Justification: The article provides relevant information about a securities fraud case and its consequences for the involved parties. It does not contain any irrelevant or misleading information, and it stays on topic without diving into unrelated territories. The article also supports its claims with evidence (the court’s decision) and provides actionable insights (Glenn is required to make full restitution). However, it lacks a deeper analysis of the long-term trends or possibilities in the industry and does not explore the consequences on those who bear the risks.
Private Companies: Glenn Capital
Key People: Jonathan Glenn (Former investment advisor)

Financial Relevance: Yes
Financial Markets Impacted: Securities and investment industry
Financial Rating Justification: The article discusses a securities fraud case involving an investment advisor who defrauded clients, impacting the financial markets through manipulation of trades and allocation of profits.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
Move Size: No market move size mentioned.
Sector: Finance
Direction: Down
Magnitude: Large
Affected Instruments: Stocks

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