January 25, 2017

Massachusetts-based investment adviser Michael J. Breton will be banned from the securities industry after the SEC uncovered an illegal cherry-picking scheme through its data analysis used to detect suspicious trading patterns.  The SEC filed charges in federal district court against Breton and his firm Strategic Capital Management, alleging they defrauded clients out of approximately $1.3 million.  Breton allegedly placed trades through a master brokerage account and then allocated profitable trades to himself while placing unprofitable trades into the client accounts.  The SEC’s Market Abuse Unit’s analysis of Breton’s trading showed that he defrauded at least 30 clients during a six-year period.  SEC

Tagged in: Financial and Investment Fraud,