The Securities and Exchange Commission (SEC) is seeking entries of default against Michael Blumer, John Kuprianchik, David Page, Steven Thompson, and Joseph Todaro – defendants in a lawsuit concerning violations of Regulation Best Interest and excessive trading.
On January 2, 2024, the SEC filed the relevant motion with the New York Eastern District Court.
The document, seen by FX News Group, moves the Court to enter the defaults of defendants Michael Blumer, John Kuprianchik, David Page, Steven Thompson, and Joseph Todaro, pursuant to Rule 55(a) of the Federal Rules of Civil Procedure for failure to plead or otherwise defend the action.
Let’s recall that in September 2023 the SEC filed charges against Michael Blumer, John Kuprianchik, David Page, Steven Thompson, and Joseph Todaro, who were registered representatives of Salomon Whitney LLC, a broker-dealer doing business under the name SW Financial, for recommending a short-term, high-volume investment strategy to at least sixteen retail customers without a reasonable basis.
According to the complaint, from at least August 2018 through June 2022, Blumer, Kuprianchik, Page, Thompson and Todaro recommended and executed more than 2,000 trades in these customers’ accounts without regard for the high transaction costs incurred by these customers.
The SEC alleges that, as a result of this high volume of recommended transactions and the attendant commissions and fees, it would have been virtually impossible for these customers to achieve a positive return in their accounts. As described in the complaint, while these customers were left with aggregate losses in their accounts exceeding $1 million, Blumer, Kuprianchik, Page, Thompson, Todaro and SW Financial collectively received more than $660,000 in commissions and fees as a result of the excessive trading they recommended.
The SEC’s complaint, filed in the United States District Court for the Eastern District of New York, charges Blumer, Kuprianchik, Page, Thompson and Todaro with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, as well as Regulation Best Interest.
The complaint seeks from all defendants permanent injunctive relief, disgorgement with prejudgment interest, and civil penalties.
