Investor Daniel Edward Peltier was suspended from his position and must
pay a $40,000 fine over accusations of market manipulation while he was
at Raymond James.
Daniel Peltier is still currently registered, but has been suspended for
10 months. Accusations of market manipulation center on the sale of an
“over the counter stock” called MIXX that he sold to Raymond
James clients. Peltier is based in Edina, Minnesota. In addition to the
$40,000 fine, he is barred from associating with any Financial Industry
Regulatory Authority (FINRA) member in any way.
The former Raymond James broker is accused of manipulating the market.
Daniel E. Peltier consented to findings that he caused stock issued for
Mix 1 Life Inc. (MIXX) to be maintained at a 26 percent higher rate than
the company’s market volume between July 2014 and February 2015.
The findings indicate that Peltier relied on a stock promotor to determine
the number of shares of the over the counter stock to be purchased, as
well as the timing of the purchases.
“Over the counter” stock refers to stock that is not traded
on a major exchange; Instead, individuals trade the stock via phone and
computer. Over the counter stock is generally used for companies that
cannot not meet the requirements of or have been delisted from a major exchange.
According to the FINRA report, Daniel Peltier placed 60 buy limit orders
to purchase MIXX on behalf of his clients and those orders were matched
by another brokerage. Additionally, the prices of Peltier’s orders
were commonly higher than the best ask price, artificially maintaining
a high price of MIXX stock.
The FINRA report concludes that Daniel Peltier should have known that maintaining
the high price was market manipulation. Additionally, Peltier was found
to have violated Raymond James’ policies by marking 30 solicited
orders as unsolicited.
Relatedly, in 2016 the former Raymond James broker was accused of inappropriately
placing over the counter MIXX stock in a client’s portfolio. The
client alleged damages of $103,000 and the claims were settled for $45,033.63.
Peltier’s FINRA report identifies two other disputes. Once in 2001
when Peltier was at RBC Capital Markets LLC and Merrill Lynch. According
to his client, the broker effected unsuitable equity transactions. The
dispute was settled for $2,777.60. In 2002, Peltier was accused of excessive
trading with alleged damages of $27,000.
Stockbroker Fraud, Misrepresentation and/or Omission
Stockbrokers have a fiduciary duty to their clients to provide complete,
factual information about their recommendations concerning investments.
Brokers who provide false or inaccurate information or who fail to provide
complete information may be liable for their clients’ losses.
Incidents of securities fraud by brokers are on the rise, including recommendations
by brokers to purchase subprime mortgage products and private placements
like over the counter stock. Over the counter stock has come under increased
scrutiny after several highly-publicized failures of private placements.
If you invested with Daniel Peltier or are concerned about over the counter
stock, call the experienced investment attorneys at Meyer Wilson today
for a free consultation.