SEC Files Suit Against Illinois Investment Adviser Over Cherry-Picking Scheme

Posted on June 30th, 2021 at 12:28 PM

From the Desk of Jim Eccleston at Eccleston Law:

The Securities and Exchange Commission (SEC) has charged Barrington Asset Management, Inc. and its chief operating officer Gregory Paris with executing a multi-year cherry-picking scheme that defrauded the firm’s clients. The SEC filed a complaint with the United States District Court for the Northern District of Illinois, which alleges that Paris fraudulently earned nearly $630,000 by cherry-picking trades over a four-year period. 

Allegedly, Paris traded securities in Barrington’s omnibus account and delayed assigning the securities to individual client accounts until trading hours had concluded. After reviewing the securities’ performance during the trading day, Paris allegedly distributed profitable trades to his personal account and transferred unprofitable trades to client accounts. The complaint further alleges that Barrington and Paris falsely informed clients that all trades would be allocated fairly and that the firm reviewed all personal trading conducted by employees. The SEC is seeking injunctive relief, disgorgement of fraudulent gains with prejudgment interest, and civil penalties. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, sec, scheme

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