Michael Allan Bressman of Chatham New Jersey a stockbroker formerly employed by FCG Advisors LLC has been suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by accusations that Bressman neglected to cooperate with FINRA’s request for his information. Case No. 2019061168201 (Nov. 4, 2019).
According to FINRA Public Disclosure, Bressman was provided a Notice of Suspension letter from FINRA on October 10, 2019 and a Suspension from Association letter on November 4, 2019. Those letters warned Bressman that his failure to comply with FINRA’s requirements could result in sanctions up to and including a bar from the securities industry. Bressman is expected to be barred on January 13, 2019 if he fails to cooperate.
Bressman has also been charged by Securities and Exchange Commission (SEC) in a Complaint alleging that he engaged in a fraudulent scheme when he was associated with FCG Wealth Management LLC and FCG Advisors LLC. Securities and Exchange Commission v. Michael A. Bressman Civil Action No. 1:18cv11925 (D. Mass. Sept. 12, 2018).
According to the Complaint, between January of 2012 and February of 2018, customers’ brokerage accounts were inappropriately utilized by Bressman enabling him to procure $700,000.00 in illicit gains through a cherry picking scheme. SEC alleged that after customers’ investment purchases were initiated, Bressman would check to see if the price of the securities increased or decreased prior to allocating trades. The Complaint alleged that profitable trades were kept by Bressman for himself, but unprofitable trades had been allocated to customers’ accounts.
The Complaint alleged that a block trading or allocation account was used by Bressman to make large stock purchases. In cases where profitable trades were allocated to Bressman’s account, he would dispose of the position that day to lock in gains. Profits were allegedly misappropriated by Bressman through this scheme. SEC alleged that Bressman’s conduct was violative of Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5 and Securities Act of 1933 Section 17(a)(1) and 17(a)(3). Bressman has also been charged with one count of felony securities fraud; and one count of felony investment adviser fraud. Criminal Action No. 18cr10315 (D. Mass. Sept. 11, 2018).
FINRA Public Disclosure confirms that Bressman is referenced in five customer initiated investment related disputes which pertain to allegations of his violative conduct during the period in which he was associated with securities broker dealers including Merrill Lynch and FCG Advisors LLC. In particular, a customer initiated investment related arbitration claim regarding Bressman’s activities was settled for $90,000.00 in damages founded on accusations that unauthorized mutual fund and over-the-counter equities transactions were effected by the stockbroker.
Bressman is also the subject of a customer initiated investment related arbitration claim where the customer requested more than $5,000.00 in damages based upon allegations that when Bressman was employed by FCG Advisors LLC, over-the-counter equities transactions were unsuitable given the customer’s risk tolerance, objectives for investing or other circumstances; and the customer’s account was over-concentrated in these speculative and inappropriate investments. FINRA Arbitration No. 18-04103 (Dec. 10, 2018).
Bressman was discharged by FCG Wealth Management on May 4, 2018 supported by accusations that he misused FCG’s allocation account in the process of effecting trades for his personal benefit.
