BROWSE BY TOPIC
Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
Ex-Wells Fargo Analyst Sanctioned for Undisclosed Material Conflicts of Interest
by Howard Haykin
Matthew Nemer agreed to a $20K fine and a 2-year suspension to settle FINRA charges that he published multiple research reports on a company while engaged in undisclosed employment discussions with that company
FINRA FINDINGS. Nemer, a former research analyst with Wells Fargo Securities, had 18 years’ experience with 4 firms. While at Wells Fargo, he covered approximately 25 companies, including several retail furnishing companies including Company X.
In August 2015, Company X personnel informed Nemer that they were interested in hiring someone with a background like his. Nemer expressed interest in the job for himself and, over the span of 7 months, he exchanged emails with Company X personnel and had numerous meetings with senior management of Company X. In early February 2016, Nemer received a written employment offer, but the following month was told that his start date would be delayed a few months. Later in March, the employment offer was rescinded.
Throughout this period - from early August to late March - Wells Fargo published 5 research reports that Nemer authored. However:
- Nemer never disclosed to Wells Fargo his employment discussions with and acceptance of an employment offer from the company to, in part, preserve his annual bonus from Wells Fargo - which he received in mid-March.
- Nemer never disclosed his material conflicts of interest in any of the research reports that he authored.
- Nemer never disclosed that he had a financial interest in the company’s securities, as a result of his acceptance of an employment offer from the company that included issuance of restricted shares of company stock.
This case was reported in FINRA Disciplinary Actions for November 2017.
For details on this case, go to ... FINRA Disciplinary Actions Online, and refer to Case # #2016051925301.