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Raymond James Broker Daniel Peltier Pays Fine for Market Manipulation of Over the Counter Stock

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.

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