The Securities and Exchange Commission has brought forth a complaint against Nomura International Securities’ senior traders Ross Shapiro (CRD# 4260687), Michael Gramins (CRD# 4826040), and Tyler Peters (CRD# 4988743). The three traders are accused of lying and misleading customers about trades and securities and making concealed profits for Nomura.
Shapiro started working with Nomura in August of 2009. He was hired as a senior trader and was the head trader for the residential mortgage-backed securities (RMBS) desk and also bought and sold manufactured housing asset-backed securities (MHABS). He was placed on administrative leave in November 2014. Graminswas also hired as an Executive Director and senior trader in August 2009. He worked with Nomura until May 2015. Peterswas hired in July 2009 and worked as an Executive Director and senior trader until May 2015.
The three senior traders are accused of misleading customers about RMBS and MHABS trades. Because these types of securities are generally considered illiquid and hard to quantify based on market value, customers usually need to rely on broker-dealers. According to the SEC, the traders took advantage of their customers’ ignorance.
Between July 2010 and November 2013, Shapiro, Gramins, and Peters allegedly lied about:
Supposedly, the men misstated how much Nomura was going to pay or was expected to pay on trades, misleading customers into paying more. Employees at the desks were also encouraged to participate in the misconduct and were given specific lies to say, according to the SEC complaint. The alleged fraud made the firm over $7 million in profit.
According to the SEC, Shapiro, Gramins, and Peters violated three counts of securities laws. The traders are charged with violating Section 17(a) of the Securities Act of 1933, Section 10 (b) of the Securities Act of 1934, and Rule 10b-5.
Based on these alleged violations, the SEC seeks:
Our investment fraud lawyers at Meyer Wilson are currently investigating charges against the Nomura traders. If you or someone you know has traded with the broker-dealers and believe you may have been lied to, contact our experienced attorneys today. Schedule a consultation to learn about your legal rights.