U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23336 / September 8, 2015
Securities and Exchange Commission v. Michael A. Gramins, Tyler G. Peters, and Ross B. Shapiro, Civil Action No. 15-cv-7045 (S.D.N.Y September 08, 2015)
SEC Charges Three RMBS Traders with Defrauding Investors
The Securities and Exchange Commission today announced fraud charges against three traders accused of repeatedly lying to customers relying on them for honest and accurate pricing information about residential mortgage-backed securities (RMBS).
The SEC alleges that Ross Shapiro, Michael Gramins, and Tyler Peters defrauded customers to illicitly generate millions of dollars in additional revenue for Nomura Securities International, the New York-based brokerage firm where they worked. They misrepresented the bids and offers being provided to Nomura for RMBS as well as the prices at which Nomura bought and sold RMBS and the spreads the firm earned intermediating RMBS trades. They also trained, coached, and directed junior traders at the firm to engage in the same misconduct.
In a parallel action, the U.S. Attorney's Office for the District of Connecticut announced criminal charges against Shapiro, Gramins, and Peters, who no longer work at Nomura.
According to the SEC's complaint filed in federal court in Manhattan:
The SEC's complaint charges Shapiro, Gramins, and Peters with violating Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 as well as Section 17(a) of the Securities Act of 1933.