(The following press release from the Financial Industry Regulatory
Authority was received by e-mail. The sender verified the statement.)
FINRA Bars J.P. Morgan Vice President and Broker Friend in Insider Trading
FINRA Previously Barred Westrock Advisors Broker for Failing to Provide
WASHINGTON -- The Financial Industry Regulatory Authority (FINRA) announced
today that it has barred David Michael Gutman, a Vice President in the
conflicts office of J.P. Morgan Securities, LLC, and Christopher John Tyndall,
a former registered representative at Meyers Associates, L.P., from the
securities industry for their roles in an insider trading scheme. Gutman and
Tyndall were longtime close personal friends who grew up together on Long
Island. FINRA's investigation found that Gutman improperly shared material,
non-public information with Tyndall during conversations that took place
between March 2006 to October 2007 regarding at least 15 pending corporate
merger and acquisition transactions. Tyndall then used the information to trade
ahead of at least six of the corporate announcements using personal and family
accounts over nearly a two-year period, and also recommended the stocks
to his customers and friends. Also in connection with its investigation, FINRA
barred http://disciplinaryactions.finra.org/viewdocument.aspx?DocNB=32899 a
third broker, Joseph Critelli - also a friend of Tyndall and a registered
representative at Westrock Advisors, Inc. at the time - in January 2013 for
failing to appear for testimony related to his trading activity in this scheme.
Gutman learned about the pending merger transactions through his work in J.P.
Morgan's conflicts office, which reviews all investment banking transactions
for potential conflicts of interest for the firm. The inside information that
Gutman improperly shared with Tyndall included details surrounding the
acquisitions of American Power Conversion Corporation announced on October 30,
2006, Genesis HealthCare Corporation announced on January 16, 2007, First Data
Corporation announced on April 2, 2007, SLM Corporation (Sallie Mae) announced
on April 13, 2007, Alliance Data Systems Corporation announced on May 17, 2007,
and Cytyc Corporation, announced on May 20, 2007.
Cameron K. Funkhouser, Executive Vice President of FINRA's Office of Fraud
Detection and Market Intelligence, said, "David Gutman had the keys to the
kingdom through his position at J.P. Morgan as a gatekeeper with special access
to material, non-public information. Gutman secretly gave inside information to
his longtime friend, Christopher Tyndall, who exploited it for personal gain
and passed it on to others. This case demonstrates that attempts to conceal
illicit activity may delay but will not deter FINRA from ultimately uncovering
In concluding these settlements, Gutman and Tyndall neither admitted nor denied
the charges. Gutman consented to the entry of FINRA's findings that he violated
NASD Rule 2110 in failing to comply with his obligation to observe high
standards of commercial honor and just and equitable principles of trade.
Tyndall consented to the entry of FINRA's findings that he violated NASD Rules
2110 and 2120, and Section 10(b) of the Exchange Act and Rule 10b-5 promulgated
thereunder for his role in the scheme.
FINRA's investigation was jointly conducted by the Office of Fraud Detection
and Market Intelligence and the Department of Enforcement.
Investors can obtain more information about, and the disciplinary record of,
any FINRA-registered broker or brokerage firm by using FINRA's BrokerCheck.
FINRA makes BrokerCheck available at no charge. In 2013, members of the public
used this service to conduct 16.5 million reviews of broker or firm records.
Investors can access BrokerCheck at
edium=email&utm_campaign=NewsRelease%5F011614%5FFINAL or by calling (800)
289-9999. Investors may find copies of this disciplinary action as well as
other disciplinary documents in FINRA's Disciplinary Actions Online database
FINRA, the Financial Industry Regulatory Authority, is the largest independent
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