The Securities and Exchange Commission announced that it has obtained a final judgment against a New York broker charged with defrauding his customers.
Ross Barish, a registered representative at a broker-dealer in Mineola, Long Island, was the subject of a complaint originally filed by the SEC in 2020 federal district court. According to the agency, Barish “engaged in a high-cost, in-and-out trading strategy” for retail customers but did not conduct reasonable due diligence on whether this plan could produce a profit. He was also accused of widespread unauthorized trading in the accounts of his customers. The SEC said Barish’s strategy delivered over $400,000 in commissions for him and his firm but caused over $800,000 in losses to the customers.
Under terms of the final judgment announced last week, Barish consented to be permanently enjoined from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. He was also ordered to pay disgorgement in the amount of $171,150.63, a civil penalty of $171,150.63, and prejudgment interest of $16,683.20, bringing the total amount to $358,984.46.
The SEC’s Office of Compliance Inspections and Examinations’ Risk Analysis Examination Team led the investigation into the case.
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