The Wall Street Legal & Regulatory Feed
Securities Industry Commentator by Bill Singer Esq
November 12, 2020
Christopher Brummer, Plaintiff, v. Benjamin Wey, FNL Media LLC, and NYG Capital LLC d/b/a New York Global Group, Defendants (Third Amended Complaint)
http://www.brokeandbroker.com/5535/sec-whistleblower-outed/
Psst . . . do ya wanna know a secret? Okay but you gotta promise not to tell. There's this guy who says that he blew the whistle on a bank and he says that he's entitled to a share of something like $50 million. We're not supposed to know the Claimant's or the bank's name. It's the law. On the other hand, somehow, I happen to know his name and that of the bank. How? Well, that's one helluva a story. Read on.
On November 10, 2020, Georgetown University law professor Christopher Brummer filed his Third Amended Complaint in furtherance of his ongoing defamation case. Christopher Brummer, Plaintiff, v. Benjamin Wey, FNL Media LLC, and NYG Capital LLC d/b/a New York Global Group, Defendants (Third Amended Complaint, Supreme Court of the State of New York/County of New York, No. 153583/2015 / November 10, 2020)
http://brokeandbroker.com/PDF/Brummer3rdAmdComp201110.pdf
As alleged in the Introduction section of the Third Amended Complaint:
1. This action arises out of the vindictive and malicious conduct of defendant Benjamin Wey ("Wey") and the companies he controls, NYG Capital LLC d/b/a New York Global Group ("NYGG") and FNL Media LLC ("FNL Media"). Defendants have been waging a comprehensive and widespread internet defamation campaign against Professor Brummer, a Professor of Law at Georgetown University Law Center.2. As set forth in the First Amended Complaint, Defendants' campaign started as retribution for Professor Brummer's participation in professional disciplinary proceedings against Wey's friends and colleagues. It quickly exploded into an obsessive personal crusade to inflict unceasing harm on Professor Brummer's reputation and to cause him severe emotional distress. Since Professor Brummer commenced this litigation in April 2015, Defendants' unrelenting assault has spanned more than four years of continued verbal, emotional, and, now, physical abuse. In more than 100 articles in multiple online platforms, including numerous new articles published since the filing of the First Amended Complaint, Defendants have viciously and falsely disparaged Professor Brummer with fabricated allegations covering an ever-growing range of topics.3. Professor Brummer accordingly seeks, among other things, compensatory and punitive damages and an order enjoining Defendants from continuing their deliberate and relentless campaign of defamation, harassment, and intimidation, and from further tarnishing Professor Brummer's reputation.
Readers are urged to consider:
(BrokeAndBroker.com Blog, April 9, 2018)http://www.brokeandbroker.com/3912/brummer-finra-singer/As noted in part in the above 2018 blog:
I am largely persuaded by Plaintiff Brummer's allegations that he was the victim of horrific defamation, but I concede that my knowledge of the case is limited to what I have read in the pleadings, motion papers, and various court orders/decisions. I await the ultimate decision from the court and will respect its findings. Please note that I have not represented and do not represent any of the parties in the civil lawsuit, and I have never personally met any of the parties.In the federal criminal case, I was troubled by what I viewed as investigative and prosecutorial misconduct aimed at Defendant Wey and others. Defense counsel did an extraordinary job in battling the government and winning a suppression order. I applauded the subsequent dismissal of the criminal case.I am angered by online articles that have displayed my image (without my express permission) and falsely attributed comments to me. Pointedly, I am aware that there are fraudulent online postings/comments purportedly by a "Bill" or "Bill Singer" that imply my authorship. For example, the "reader comment" posted by a "Bill Singer" was not posted by me or at my direction or with my authorization and I disavow it for the garbage that it is:Bill Singer October 11, 2017 ReplyI wish more people had the resources and guts as Benjamin Wey. Nail those lying Finra motherfuckers so the next innocent soul with less resources wouldn't be fucked over. As far as a Chris Brummer, this Dr. Bratwurst is burned. Pay up asshole!I am confident that the content and context of my previously published remarks, which remain online for all to read, confirm that I am wholly sympathetic to Plaintiff Brummer in terms of his allegations that he was the victim of defamation. Any comments attributed to me to the contrary are bogus. . . .
https://www.reuters.com/article/us-banks-bonuses/most-wall-street-workers-to-get-lower-2020-bonuses-study-idUSKBN27S0HT
Cataloging the dire impact of COVID upon the US financial sector, Reuters reports, in part, that:
Retail and commercial bankers will be the hardest hit, with their year-end incentive payments expected to decline at least 25% to 30% compared with last year, while investment banking advisors can expect to see their payments decline by as much as 15% to 20%.
For the purpose of proposing a settlement of rule violations alleged by the Financial Industry Regulatory Authority ("FINRA"), without admitting or denying the findings, prior to a regulatory hearing, and without an adjudication of any issue, Michael Alan Biedny submitted a Letter of Acceptance, Waiver and Consent ("AWC"), which FINRA accepted. The AWC asserts that Michael Alan Biedny has been registered since 1979 and from May 2005 through December 2018, he was registered with Raymond James Financial Services, Inc.. The AWC asserts that Biedny "has no relevant disciplinary history." In accordance with the terms of the AWC, FINRA found that Biedny violated FINRA Rule 2010, and the self-regulator imposed upon him a $10,000 fine and a six-month suspension from associating with any FINRA member in any capacity. The AWC alleges in part that:
From May 2015 to November 2017, Biedny accepted six checks totaling $1 18,000 given to him voluntarily by a senior customer. The checks represented more than 10% of the customer's net worth at the time. To obtain the money to fund four of the checks, the customer sold a CD prior to maturity for less than face value.At all relevant times, the Raymond James written supervisory policies prohibited its registered representatives from accepting anything of value from a customer in excess of $100 per calendar year, absent prior approval by the Finn's compliance department.Biedny was aware of those written policies and acted intentionally to circumvent them. In May 2015, following receipt of the first gift, Biedny instructed the customer that if he was to accept her gift, she would have to keep it a secret. On May 2, 2016, March 27, 2017, and June 27, 2018, Biedny completed branch audit questionnaires and falsely certified that he had not accepted gifts in excess of $100. In May 2017, Biedny entered a note into the Raymond James electronic system for memorializing customer contacts stating that the customer had requested a $70,000 cash withdrawal for a real estate transaction and charitable gift unrelated to him. Within two weeks, after receiving three checks totaling $69,000 from the same customer, Biedny was aware that the note was inaccurate, but failed to correct it.In December 2018, when asked by his supervisor if he had accepted gifts from customer, Biedny falsely denied doing so. . . .
For the purpose of proposing a settlement of rule violations alleged by the Financial Industry Regulatory Authority ("FINRA"), without admitting or denying the findings, prior to a regulatory hearing, and without an adjudication of any issue, John A. Westbrook submitted a Letter of Acceptance, Waiver and Consent ("AWC"), which FINRA accepted. The AWC asserts that John A. Westbrook has been registered since 1988, and from September 4, 2014, through February 10, 2020, he was registered with Center Street Securities, Inc. The AWC asserts that Westbrook "has no relevant disciplinary history." In accordance with the terms of the AWC, FINRA found that Westbrook violated FINRA Rules 3280 and 2010, and the self-regulator imposed upon him a $5,000 fine and a five-month suspension from associating with any FINRA member in any capacity. The AWC alleges in part that:
Between October 1, 2016 and May 9, 2017, Respondent solicited three investors to purchase $350,335 in securities of Future Income Payments, LLC (FIP). FIP represented itself as a structured cash flow investment that purchased pensions at a discount from pensioners and then sold a portion of those pensions as a "pension stream" to investors. FIP generally promised investors a seven to eight-percent rate of return on their investment. 1 Respondent received a total of $14,013 in commissions in connection with his sales of FIP securities.At all times during the stated period, Respondent's employer member firm prohibited its registered representatives from participating in private securities transactions without prior written approval from the firm. Respondent did not provide notice to his employer member firm prior to participating in the FIP sales.= = = = =Footnote 1: In April 2018, FIP ceased business, owing nearly $300 million in unpaid investor payments. In a March 12, 2019 indictment, the United States charged FIP and its owner, Scott A. Kohn, with conspiracy to engage in mail and wire fraud related to FIP's operations.