Michael Allan Bressman of Chatham New Jersey a stockbroker formerly registered with FCG Advisors LLC has been barred from associating with any FINRA member in any capacity supported by allegations that the stockbroker neglected to respond to FINRA’s request for information. FINRA Case No. 2019061168201 (Jan 13, 2020).
According to FINRA Public Disclosure, Bressman was initially issued a Notice of Suspension letter by FINRA on October 10, 2019 and then issued a Suspension from Association letter on November 4, 2019. The stockbroker neglected to ask FINRA’s permission for his suspension to be lifted within three months of being notified about it. The stockbroker was automatically barred by FINRA on January 13, 2020.
On September 12, 2018, Securities and Exchange Commission (SEC) brought an enforcement action against Bressman founded on accusations that the stockbroker engaged in a fraudulent cherry picking scheme. Securities and Exchange Commission v. Michael A. Bressman No. 1:18-cv-11925.
According to the Complaint, between January of 2012 and February of 2018, Bressman misused an allocation account to procure $700,000.00 in profits. Profitable trades had been cherry-picked and allocated to Bressman’s account as well as the accounts of his family members. Bressman’s customers were allocated unprofitable trades. SEC alleged that Bressman committed fraud in violation of Securities Act of 1933 Section 17(a) as well as Securities Exchange Act of 1934 Section 10(b) and SEC Rule 10b-5.
Bressman was also fined $15,000.00 and barred by New York Stock Exchange based upon findings of the stockbroker effecting trades in a customer’s account on a discretionary basis without generating pre-trade confirmation from the customer.
FINRA Public Disclosure reveals that Bressman has been referenced in at least five customer initiated investment related disputes containing allegations of his wrongdoing during the time that he was associated with securities broker dealers including Merrill Lynch Pierce Fenner Smith Incorporated and FCG Advisors. A customer initiated investment related complaint involving Bressman’s conduct was settled for $25,000.00 in damages based upon allegations of unauthorized trading in the Merrill Lynch customer’s account. Another customer initiated investment related complaint pertaining to Bressman’s activities had been resolved for $15,000.00 in damages supported by accusations of trades failing to be authorized by the Merrill Lynch customer.
Bressman is also referenced in a customer initiated investment related arbitration claim which was settled for $90,000.00 in damages based upon allegations of his unauthorized trading while employed by Merrill Lynch. The stockbroker is the subject of another customer initiated investment related arbitration claim which was resolved for $25,000.00 in damages based upon accusations that an unreasonable portion of the customer’s assets were allocated in over-the-counter equities and that Bressman’s trading failed to be suitable for the FCG Advisors customer. FINRA Arbitration No. 18-04103 (Dec. 12, 2019).
On May 4, 2018, FCG Wealth Management discharged Bressman supported by allegations of his misuse of the securities broker dealer’s allocation account to effect personal trades.