Analyst from Goldens Bridge to pay $23,400 fine
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- December
- 27
A Goldens Bridge securities analyst whose personal stock trade was at odds with what he was telling clients has agreed to a $23,400 fine and a 30-day suspension to settle disciplinary charges.
The Financial Industry Regulatory Authority said the analyst, Michael Steven Corelli, ran afoul of federal rules while working for Texas-based Prospera Financial Services in November 2004.
On Nov. 30, Corelli wrote a report on Tweeter Home Entertainment Group in which he described the company as “an interesting speculation� whose price could go higher as a result of the upcoming holiday shopping season.
On Jan. 5, however, Corelli sold 2,000 shares of Tweeter stock he owned for a profit of $3,400. Less than 90 minutes after the sale, he issued an updated research report on the company that said he was “a little more neutral on the stock� at the current price.
In settling the charge, Corelli neither admitted nor denied the agency’s findings. He has no listing in Goldens Bridge and could not be reached for comment. His case was reported in the agency’s monthly disciplinary report.
In an unrelated case, the monthly report also said that the former branch manager of Ryan Beck & Co. in Scarsdale was suspended for three months and fined $10,000 for failing to supervise an employee who was making inappropriate trades on customers’ accounts.
The former branch manager, Ralph M. Freydberg Jr. of Stamford, Conn., had been fined $135,000 by the Montana Commissioner of Securities and Insurance in the case, which occurred between May 2002 and June 2004.
Freydberg declined comment on the case. He agreed to the settlement without admitting or denying the findings.
This entry was posted
on Thursday, December 27th, 2007 at 6:56 pm by Jerry Gleeson.
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