SEC Accuses New York Brokers of In-and-Out Trading Fraud

Two brokers at a now-defunct broker-dealer firm in New York state used a fraudulent in-and-out strategy that netted them about $800,000 but cost customers nearly $1.4 million, the Securities and Exchange Commission alleged in a Jan. 9 complaint (SEC v. Dean, S.D.N.Y., No. 1:17-cv-00139, 1/9/17)

Gregory T. Dean and Donald J. Fowler of J.D. Nicholas & Associates Inc. defrauded 27 clients in a scheme that generally involved selling securities within two weeks of purchasing them and charging commissions for each transaction, according to a filing with the U.S. District Court for the Southern District of New York. The ...