In a recent decision announced this Friday, the Securities and Exchange Commission (SEC) has expelled a registered investment advisor from Greenwich, Connecticut, from the finance industry. The advisor was allegedly involved in a scheme that preferentially distributed profits from successful trades to selected accounts while allocating losses to others.
Jonathan Vincent Glenn, the individual implicated in the scheme, and his controlled Registered Investment Advisor (RIA), GlennCap, reportedly executed a series of trades from January 2020 through March 2022. These trades were conducted via an omnibus account, which was subsequently used to distribute profits and losses to individual accounts in a fraudulent manner.
The alleged cherry-picking scheme favored certain accounts with gains derived from successful trades, while other clients were subjected to the losses incurred by less successful trades. This preferential treatment led to Glenn's expulsion from the finance industry.
The SEC's decision is part of its commitment to maintain fairness and integrity within the financial sector. The regulatory body continues to focus on eliminating malpractices that harm investors and undermine the confidence of stakeholders in the industry.
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