{"id":85903,"date":"2023-09-15T00:09:17","date_gmt":"2023-09-15T04:09:17","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=85903"},"modified":"2023-09-15T00:01:24","modified_gmt":"2023-09-15T04:01:24","slug":"connecticut-advisory-firm-glenncap-and-its-owner-charged-with-cherry-picking","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/09\/2023\/connecticut-advisory-firm-glenncap-and-its-owner-charged-with-cherry-picking.html","title":{"rendered":"Connecticut Advisory Firm GlennCap and its Owner Charged with Cherry-Picking"},"content":{"rendered":"\n<p>(HedgeCo.Net) The Securities and Exchange Commission has settled fraud charges against <strong>GlennCap LLC, <\/strong>a Connecticut-based investment advisory firm, and its owner, <strong>Jonathan Vincent Glenn<\/strong>, for allocating profitable securities trades to favored accounts, including GlennCap\u2019s own accounts and client accounts that paid GlennCap a higher percentage of positive returns in fees, while allocating a disproportionate amount of unprofitable trades to disfavored clients, a practice known as cherry-picking.<\/p>\n\n\n\n<p>According to the SEC\u2019s order, between at least January 2020 and March 2022, Glenn, who was also an investment adviser representative of GlennCap, engaged in block trading, which allowed him to pool funds from multiple clients\u2019 accounts into trades, and then, after seeing whether a position increased or decreased in value, he allocated the more profitable trades to accounts that he favored. The probability that the favored accounts received the more profitable trades by chance was statistically nearly zero. The SEC\u2019s order finds that Glenn and GlennCap received at least <strong>$2.7 million in profits<\/strong> from the cherry-picking scheme. Further, the SEC order found that Glenn made false and misleading statements regarding GlennCap\u2019s trading practices in documents it provided to clients and prospective clients.<\/p>\n\n\n\n<p><strong><em>\u201cGlenn allocated millions of dollars from profitable trades to accounts benefitting himself while unloading unprofitable trades on GlennCap\u2019s clients,\u201d said Andrew Dean, Co-Chief of the SEC Enforcement Division\u2019s Asset Management Unit. \u201cThe SEC has the means to identify investment advisers that abuse their position through cherry-picking, as Glenn and GlennCap did. We use these methods to ensure investor trust in our markets.\u201d<\/em><\/strong><\/p>\n\n\n\n<p>The SEC\u2019s order finds that Glenn and GlennCap violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, Section 17(a) of the Securities Act of 1933, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. Glenn and GlennCap consented, without admitting or denying the SEC\u2019s findings, to the entry of a cease-and-desist order requiring them to pay more than <strong>$3 million in civil penalties,<\/strong> disgorgement, and prejudgment interest.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net) The Securities and Exchange Commission has settled fraud charges against GlennCap LLC, a Connecticut-based investment advisory firm, and its owner, Jonathan Vincent Glenn, for allocating profitable securities trades to favored accounts, including GlennCap\u2019s own accounts and client accounts that [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048,16047],"tags":[],"class_list":["post-85903","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/85903","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=85903"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/85903\/revisions"}],"predecessor-version":[{"id":85904,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/85903\/revisions\/85904"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=85903"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=85903"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=85903"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}