Noah Myers Allegedly Cherry-picked Client Accounts
Noah Myers, 43, and of Essex, Connecticut, allegedly engaged in fraudulent trading practices known as “cherry picking,” according to SEC documents.
Myers, The sole owner of MiddleCove Capital, LLC, located in the Centerbrook section of Essex, allegedly cherry picked select accounts, which means that he took profits from successful investments for his own and other favored accounts, whilst dumping losses onto other accounts not in his favor, the SEC documents further note.
Myers, who registered MiddleCove with the SEC as an investment adviser in 2008, was allegedly able to pull this off by simply waiting to assign a trade to an account until after he could determine whether it was profitable or not, according to SEC documents.
Clients Reportedly Lost as much as $2 Million
This cherry picking fraud allegedly resulted in client losses of more than $2 million, while Myers reportedly brought in $460,000 for himself, according to the SEC documents.
These SEC papers further allege that many of the alleged victims who were scammed were, unfortunately, retirees or were dependent on their MiddleCove account as a main source of retirement funds, and reportedly requested for low-risk investments.
The gig was up when employees of MiddleCove were alerted, in 2010, to the alleged illegal trading through a computer program which was implemented to detect favorable allocation of profitable day trades, according to SEC documents.
Finally, the SEC reports that they have revoked MiddleCove’s registration as an investment adviser and barred Myers, who has been under investigation by both the SEC and FBI, from the securities industry.
Investment Fraud Lawyers Investigating
The Peiffer Wolf investment lawyers often represent investors who lose money as a result of investment fraud, or stockbroker misconduct. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or broket misconduct may contact the investment fraud lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.
Broker: Noah Myers
Status: INVESTIGATED by Peiffer Wolf.
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