The Securities and Exchange Commission (SEC) is seeking default entries against Michael Blumer, John Kuprianchik, David Page, Steven Thompson and Joseph Todaro – defendants in a lawsuit related to violations of the Best Interest Rule and excessive trading.
On January 2, 2024, the SEC filed the relevant application in the Eastern District Court of New York.
The document, seen by FX News Group, urges the Court to enter defendants Michael Blumer, John Kuprianchik, David Page, Steven Thompson and Joseph Todaro’s defaults pursuant to Rule 55(a) of the Federal Rules of Civil Procedure for failing . plead or otherwise defend the action.
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 doing business as SW Financial, for recommending a short-term, high-volume investment strategy to at least sixteen retail clients without a rational 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 the accounts of these clients without considering the high transaction costs incurred by them the customers.
The SEC alleges that, as a result of this high volume of recommended trades and the resulting commissions and fees, it would be virtually impossible for these clients to achieve a positive return on their accounts. As detailed in the complaint, while those customers were left with total losses in their accounts exceeding $1 million, Blumer, Kuprianchik, Page, Thompson, Todaro and SW Financial received a total of more than $660,000 in fees and charges as a result of the excessive trading is 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 anti-fraud 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 and the Best Interest Rule.
The complaint seeks permanent injunctive relief, dismissal with prejudice and civil penalties from all defendants.