A Greenwich, Connecticut monetary advisor waived his proper to be indicted and pleaded responsible on Thursday to defrauding over 45 shoppers out of greater than $2.7 million mixed as a part of a “cherry-picking” securities scheme, in accordance with courtroom paperwork and the Justice Division.
Jonathan Vincent Glenn, 54, who owned the agency Glenn Capital in Greenwich, pleaded responsible to 1 depend of securities fraud.
Ththe cost carries a most jail time period of 25 years and a advantageous of as much as about $5.4 million, Vanessa Roberts Avery, U.S. Lawyer for the District of Connecticut, and Robert Fuller, particular agent accountable for the New Haven Division of the Federal Bureau of Investigation, introduced Friday.
Glenn was launched, pending sentencing, which is scheduled for Dec. 28, the Justice Division stated.
“Cherry-picking” is a fraudulent securities buying and selling follow through which the perpetrator executes trades with out assigning these trades to a selected buying and selling account till she or he determines whether or not or not the commerce has turn out to be worthwhile or suffered losses, the Justice Division defined within the announcement.
The accountable particular person then allocates trades that have been worthwhile to favored accounts (typically the person’s personal accounts) and assigns unprofitable trades to disfavored consumer accounts.
By Glenn Capital, Glenn supplied his shoppers portfolio administration providers together with asset allocation and asset choice. He managed all of Glenn Capital’s advisory shoppers’ accounts and was approved to make buying and selling selections on every consumer’s behalf with out searching for approval for every commerce, in accordance with the Justice Division.
Glenn positioned trades on behalf of shoppers, himself or relations by buying and selling straight within the related particular person account, or by putting block trades in Glenn Capital’s omnibus account and allocating block trades amongst related particular person accounts.
