Cleveland’s John Phillip Correnti (CRD# 5319471) has been barred from the securities industry by FINRA (Financial Industry Regulatory Authority) for refusing to provide testimony and documents pertaining to an investigation of possible rule violations.
According to a recent look at his BrokerCheck report, John Correnti was terminated from AXA Advisors of Cleveland, Ohio in July 2016 over his “apparent involvement in the possible market manipulation of a low price security.”
John Phillip Correnti had been with AXA since September 2015. He previously worked with Forest Securities in Chicago; Grand Capital Ventures Inc. in Shaker Heights, Ohio; MVP Financial in New York City; and Jobeav Enterprises Inc. in Broadview Heights, Ohio.
While he was a registered broker with MVP Financial LLC, John Phillip Correnti was accused by a customer of mismanagement, misrepresentation, and fraudulently causing harm in investments during the period of July 2009 through May 2010. The case settled in 2012.
Market Manipulation is Investment Fraud
One of the likely ways a broker can commit market manipulation is through a “pump and dump” scam. The fraudster finds a stock that is worth very little, commonly called a “penny stock,” and buys many shares.
After promoting the stock as a way for others to get rich quickly, the fraudster sees investors start to buy shares as well, making the price rise. The fraudulent broker continues “pumping” the stock – sometimes using quotes from experts and by distributing fake press releases – to keep the price rising at a false rate of inflation.
The fraudster eventually “dumps” the stock at a huge profit. Meanwhile, the scammed investors are left with worthless shares as the price drops out of the floor.
In order to avoid such market manipulation, be wary of investment recommendations from people you don’t know, especially investments that are for a “limited time only” or that promise there’s an upcoming announcement from a company on the way.
Increasingly aggressive marketing or high-pressure sales tactics are definite red flags that market manipulation could be in the works.
Double check that the stock is trading on a national exchange before you make any investments. Be especially cautious of investment tips or offers you receive online, through your email or otherwise.
Market manipulation is an effective type of investment fraud because it appears that you are receiving the results you were promised at first. The companies often are legitimate, and the fraudsters drop their shares so quickly, honest investors don’t have time to sell before they lose their money.
Brokers who engage in market manipulation such as the pump and dump scam need to be held accountable.
The trusted investment fraud attorneys at Meyer Wilson can unravel the most tangled web of market manipulation and help you regain the money you lost. Call today for a free consultation.