The Securities and Exchange Commission won a jury trial in U.S. District Court, Atlanta, against a New Jersey securities broker who had been charged with insider trading in advance of three M&As.
Jurors found Raymond Pirrello Jr. guilty on all five SEC claims, the Verdict Form filed Wednesday showed.
Pirrello last served as a FINRA-registered broker for Red Bank, New Jersey-based Garden State Securities in 2016, according to the BrokerCheck website, which says he was suspended from acting as a broker after working there since 2008. He was first registered with the Financial Industry Regulatory Authority in 1996, the site shows.
Asked Thursday if Garden State Securities was aware of the activities that Pirrello was accused of during his time with the firm, Robert Rabinowitz, managing partner at Becker & Poliakoff, the law firm representing Garden State, told ThinkAdvisor: “Absolutely positively not. He never would have been permitted to continue to work there had the firm had any inkling what he was doing.” Once Garden State became aware of his “malfeasance,” the firm terminated him, he said, adding that Garden State cooperated with the SEC on its investigation.
Pirrello’s attorneys didn’t immediately respond to a request for comment about the jury’s verdict.
Scheduled next is a post-trial brief by the SEC that’s due on or before Aug. 23, followed by the defendant’s response on or before Aug. 30. Unless the parties waive the need for a post-trial hearing, a hearing will be held Sept. 6, a court document showed.