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Former New Jersey Broker Charged in $700,000 Cherry-Picking Scheme
BOSTON – In a shocking turn of events, a former New Jersey broker has been arrested and charged with defrauding his clients in a multi-year ‘cherry-picking’ scheme, netting him at least $700,000 in illicit trading profits.
Michael Bressman, 61, of Montville, N.J., was taken into custody and charged in an indictment unsealed today with securities fraud and investment advisor fraud. Bressman will appear before a federal court in New Jersey later today.
According to the indictment, Bressman misused his access to an omnibus or ‘allocation’ account to place trades and cherry-pick profitable trades, which he then transferred to his own account and the accounts of two family members, while placing unprofitable trades in other customers’ accounts.
The indictment alleges that Bressman engaged in this scheme over a six-year period ending in February 2018.
The Securities and Exchange Commission (SEC) in New York has also announced civil charges against Bressman in a parallel action.
The charge of securities fraud carries a maximum sentence of 25 years in prison, five years of supervised release, and a fine of $5 million. The charge of investment advisor fraud carries a maximum sentence of five years in prison, two years of supervised release, and a fine of $250,000.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The SEC’s Market Abuse Unit in New York provided assistance with the investigation.
Assistant U.S. Attorney Eric Rosen of Lelling’s Economic Crimes Unit is prosecuting the case.
It is essential to note that the details contained in the indictment are allegations, and the defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
Key Facts
- State: Massachusetts
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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