New Jersey Man Charged by SEC in Familiar Trading Fraud

Posted on September 11th, 2020 at 2:02 PM
New Jersey Man Charged by SEC in Familiar Trading Fraud

From the Desk of Jim Eccleston at Eccleston Law LLC:

The U.S. Securities and Exchange Commission (“SEC”) has charged RRBB Asset Management, LLC, (“RRBB”) and its president, Carl Schwartz, with fraud. RRBB is based in Maplewood, New Jersey.

According to the SEC, Schwartz traded securities in the firm’s omnibus account, and did not allocate the securities to specific client accounts until he had watched the securities performance for a day. After this observation, profitable trades were allocated to favored accounts, while poor-performing trades were allocated to other client accounts, the SEC alleged. According to the SEC, profitable trades were disproportionately allocated to six client accounts associated with two elderly clients. The SEC further alleged that Schwartz and RRBB misrepresented to clients that all trades would be allocated fairly.

Schwartz and the firm are charged with a variety of violations, including violations of the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934, Sections 17(a)(1) and (a)(2) of the Securities Act of 1933 and Sections 206(1) and (2) of the Investment Advisers Act of 1940.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Tags: eccelston law, fraud, new jersey, sec

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Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

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