The hits keep coming for JPMorgan.
The Financial Industry Regulatory Authority announced Thursday that it barred David Michael Gutman, a vice president in the conflicts office of J.P. Morgan Securities LLC, and Christopher John Tyndall, a former registered rep at Meyers Associates L.P., from the securities industry for their roles in an insider trading scheme.
FINRA says that the two were longtime close friends who grew up together on Long Island. FINRA's investigation found that Gutman improperly shared material, nonpublic information with Tyndall during conversations that took place between March 2006 and October 2007 regarding at least 15 pending corporate merger and acquisition transactions.
"Tyndall then used the information to trade ahead of at least six of the corporate announcements using personal and family accounts over nearly a two-year period, and also recommended the stocks to his customers and friends," FINRA says. Also in connection with its investigation, FINRA barred a third broker, Joseph Critelli — also a friend of Tyndall and a registered rep at Westrock Advisors Inc. at the time — in January 2013 for failing to appear for testimony related to his trading activity in this scheme.
Gutman learned about the pending merger transactions through his work in J.P. Morgan's conflicts office, which reviews all investment banking transactions for potential conflicts of interest for the firm.
