SEC Charges Florida Resident With Securities Fraud
On September 10th, 2018, the Securities and Exchange Commission (SEC) announced securities fraud charges against a former Miami Beach, Florida broker named Emil Botvinnik. In the United States District Court for the Southern District of New York, the SEC charged Mr. Botvinnik (CRD#: 4359481) in a multi-million dollar excessive trading (churning) scheme.
The alleged fraud occurred when this broker was employed at Meyers Associates, a brokerage firm that was later expelled from the industry by the Financial Industry Regulatory Authority (FINRA). In this post, our top-rated Miami churning attorneys review the allegations raised in the SEC complaint against former Miami Beach broker Emil Botvinnik.
Excessive Trading Charges: Former Miami Beach Meyers Associates Broker Emil Botvinnik
Background
From 2012 to 2014, Emil Botvinnik was a securities representative for Meyers Associates in Miami Beach, Florida. After he left the firm, Meyers Associates changed its name to Windsor Street Capital. Further, in the Spring of 2018, this brokerage firm was expelled from the securities industry for its poor record of protecting the rights and interests of investors.
Broker Misconduct
During his time at Meyers Associates, FINRA alleges that Mr. Botvinnik made unreasonable, excessive trades on behalf of several different customers. This is a violation of securities industry rules and federal law. Specifically, at least five different investors were affected by alleged fraud. According to the SEC, these investors collectively sustained more than $2.7 million in financial losses and Mr. Botvinnik took in nearly $3.9 million in ill-gotten gains from commissions.
The trading strategy that Mr. Botvinnik employed on behalf of these investors was not remotely sensible. It was certainly not within the interests of investors. The SEC determined that Mr. Botvinnik conduct very frequent, short-term trades within discretionary brokerage accounts that he oversaw. Each trade resulted in a commission payment being made directly to Mr. Botvinnik. The trades were so frequent that it made it almost impossible for the investors to achieve successful results. The SEC’s analysis determined that these investors would need to make annual returns of nearly 50 percent just to break even. Of course, they did not come close to making that, and thus lost a considerable amount of money.
The SEC is Seeking Relief
The SEC is charging former Miami Beach, FL broker Emil Botvinnik with violations of the anti-fraud provisions of federal securities law. Among other things, federal regulators are seeking:
- Findings to hold this broker legally liable for the alleged securities law violations;
- Full payment of financial restitution and disgorgement of any ill gotten gains;
- The payment of civil financial penalties; and
- Any other relief deemed appropriate by the court.
Get Help From Our Securities Law Attorneys Today
At Carlson & Associates, P.A., our experienced Florida securities fraud lawyers represent investors against bad brokers and brokerage firms. We have extensive experience handling excessive trading claims and unsuitable investment claims. To get a fully confidential review of your investment fraud case, please call our Miami law office today at 1 (305) 372-9700.
Resources:
sec.gov/news/press-release/2018-183
brokercheck.finra.org/individual/summary/4359481
sec.gov/litigation/complaints/2018/comp-pr2018-183-botvinnik.pdf