Former Broker-Dealer Representative Settles Fraudulent Manipulation Charges with SEC
James P. Anglim, a former broker-dealer representative from New Jersey, has agreed to settle charges brought against him by the Securities and Exchange Commission (SEC) related to a fraudulent scheme involving the manipulation of stock prices. As part of the settlement, Anglim will pay a sum of $488,000.
According to the SEC’s complaint filed in federal court in Boston, Anglim was employed as a registered representative of two different U.S.-based brokerage firms that engaged in market-making activities. Market-making involves providing liquidity to the securities market by publicly quoting both buy and sell prices for stocks and offering to trade with the public at those prices. Anglim allegedly abused his position as a trader to facilitate the illegal sale of stock into the public securities market on behalf of individuals who controlled substantial amounts of stock in at least five different public companies.
The SEC’s complaint asserts that Anglim’s actions allowed those individuals to offload large quantities of stock into the market while concealing their role in these sales, thereby evading disclosure requirements mandated by federal securities laws. The individuals involved had previously been charged with fraud by the Commission and were not customers of the brokerage firms where Anglim worked. However, Anglim allegedly entered into agreements with them, enabling their fraudulent activities while benefiting himself. The complaint also alleges that the individuals artificially boosted demand for the stocks through aggressive sales communications or boiler rooms, leading retail investors to purchase the stocks based on manipulated price and volume information.
Without admitting or denying the SEC’s allegations, Anglim has agreed to a final judgment that permanently enjoins him from violating relevant securities laws and rules. The settlement will require him to disgorge $405,991 in trading profits, pay $82,009 in prejudgment interest, and imposes a penny stock bar against him. Due to his cooperation with the SEC’s investigation, the Commission decided not to seek a civil penalty in the settlement and has requested the court to refrain from imposing one.
The settlement is currently awaiting court approval.
This news highlights the SEC’s ongoing efforts to combat fraudulent schemes and market manipulation in the securities industry. By holding individuals accountable for their involvement in such activities, the SEC aims to protect investors and maintain the integrity of the financial markets.
