The Securities and Exchange Commission has brought forth a
complaint against Nomura International Securities’ senior traders Ross Shapiro (CRD# 4260687), Michael Gramins (CRD# 4826040), and Tyler Peters (CRD# 4988743). The
three traders are accused of lying and misleading customers about trades
and securities and making concealed profits for Nomura.
Shapiro started working with Nomura in August of 2009. He was hired as
a senior trader and was the head trader for the residential mortgage-backed
securities (RMBS) desk and also bought and sold manufactured housing asset-backed
securities (MHABS). He was placed on administrative leave in November
2014. Graminswas also hired as an Executive Director and senior trader
in August 2009. He worked with Nomura until May 2015. Peterswas hired
in July 2009 and worked as an Executive Director and senior trader until May 2015.
The three senior traders are accused of misleading customers about RMBS
and MHABS trades. Because these types of securities are generally considered
illiquid and hard to quantify based on market value, customers usually
need to rely on broker-dealers. According to the SEC, the traders took
advantage of their customers’ ignorance.
Between July 2010 and November 2013, Shapiro, Gramins, and Peters allegedly
- The prices of RMBS and MHABS
- How much compensation Nomura received on the trades
- Did not disclose whether customers were getting the best price for the
Supposedly, the men misstated how much Nomura was going to pay or was expected
to pay on trades, misleading customers into paying more. Employees at
the desks were also encouraged to participate in the misconduct and were
given specific lies to say, according to the SEC complaint. The alleged
fraud made the firm over $7 million in profit.
According to the SEC, Shapiro, Gramins, and Peters violated three counts
of securities laws. The traders are charged with violating Section 17(a)
of the Securities Act of 1933, Section 10 (b) of the Securities Act of
1934, and Rule 10b-5.
Based on these alleged violations, the SEC seeks:
- An injunction against Shapiro, Gramins, and Peters from further violating
- Repay illicit profit and pay interest based on sum before judgment
- Pay a civil monetary penalty
- Offer any other form of relief that the court deems appropriate
Our investment fraud lawyers at Meyer Wilson are currently investigating
charges against the Nomura traders. If you or someone you know has traded
with the broker-dealers and believe you may have been lied to, contact
our experienced attorneys today. Schedule a consultation to learn about
your legal rights.