SEC Uses Data Analysis To Catch Cherry-Picking Advisers

Law360, New York (September 13, 2017, 5:37 PM EDT) -- The U.S. Securities and Exchange Commission announced settled charges Tuesday against two investment advisers, ending allegations that they engaged in separate cherry-picking schemes to increase their personal profits that were discovered by the agency’s data analysis.

Jeremy A. Licht, the owner of JL Capital Management, and Garry S. Howarth, the owner of Howarth Financial Services LLC, agreed to separate settlements with the SEC without admitting or denying charges that they “cherry-picked” trades by allocating profitable trades in omnibus accounts to their own personal accounts rather than...
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