Securities Lawyers Blog
Gana Weinstein LLP is examining claims made by the United States Securities and Exchange Commission against broker Michael Siva (Siva). According to BrokerCheck records, Siva and five other individuals allegedly engaged in securities fraud and profited by over $5 million by trading on insider information about dozens of impending corporate mergers, acquisitions, and tender offers.
Siva entered the industry in 1996. He is currently employed at Morgan Stanley and has worked there for 8 years. Between October 2014 and April 2017, Siva allegedly used inside information to make profitable trades for his clients, earning commissions for himself in the process. Mr. Siva also allegedly traded on behalf of himself and his wife based on two of the tips he received.
Securities fraud (a/k/a investment fraud) stems from a variety of deceptive practice in the stock or commodities markets. Securities fraud stems from intentionally false information or the omission of material information that induces an investor to make purchase or sales decisions. Securities fraud violates state and federal securities laws. Securities fraud encompass a wide range of illegal activity, including violations of section 10(b) of the Securities Exchange Act of 1934, insider trading, and other illicit activity on trading floors of stock and commodities exchanges. Insider trading is the illegal practice of trading on the stock exchange to one’s own advantage through having access to confidential information.
According to Investment News, Prosecutors for the U.S. Attorney’s Office for the Southern District of New York said that an IT employee of a large multinational bank leaked material nonpublic information about potential mergers, acquisitions and tender offers, involving clients and prospective clients, and Siva traded on the tips. The IT employee had access to highly-confidential information about hundreds of potential business combinations that had not yet been announced to the public. For more than two years, the IT employee misappropriated material nonpublic information about dozens of impending deals by repeatedly passing the information through three different tipping chains. The Direct Tippees traded on the information and passed the IT employee’s tips to others, including Siva. According to BrokerCheck records, by engaging in the conduct described, Siva allegedly violated Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder.
The securities attorneys at Gana Weinstein LLP have a wide ranging securities fraud practice. We have represented hundreds of investors in securities related litigation. On behalf of our clients we successfully brought claims against some of the largest broker-dealers and registered investment advisers in the country. The majority of these claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.