Vince Glenn Allegedly Engaged in Cherry-Picking Scheme
Vince Glenn (CRD# 2272521), formerly an adviser registered with Glenn Capital, recently settled Securities and Exchange Commission that he defrauded investors. MDF Law is investigating the former Greenwich, Connecticut-based financial professional for similar conduct. If you have concerns about your portfolio, contact us for a free consultation.
To learn more about the charges against Mr. Glenn, continue reading this post. The information below is based on a review of his BrokerCheck profile, a Financial Industry Regulatory Authority record, on October 8, 2024.
Why Did the SEC Bar and Fine Vince Glenn?
On September 14, 2023, the SEC undertook an administrative proceeding against Mr. Glenn. As a disclosure on his BrokerCheck record lays out, the SEC alleged that he and his firm, GlennCap, engaged in an undisclosed practice called “cherry-picking.” This is a form of securities fraud, the SEC explains, in which an adviser allocates “profitable trades to favored accounts at the expense of other advisory clients.” Mr. Glenn allegedly carried out this scheme by conducting block trades in the firm’s “omnibus brokerage account.” Later, once it was clear which positions rose or fell in value, he allocated the trades “to either favored or disfavored accounts.”
Finding that his activities violated securities law, the SEC instituted a number of sanctions against him. In addition to barring him from acting as a broker or investment adviser, it ordered him to pay a fine of $500,000, disgorgement of $2,743,616, and a monetary penalty of $251,357.
SEC Releases Statement about Cherry-Picking Allegations
A press release issued by the SEC on September 14, 2024 includes a statement regarding the settlement. “[Mr.] Glenn allocated millions of dollars from profitable trades to accounts benefitting himself while unloading unprofitable trades on GlennCap’s clients,” the Co-Chief of the SEC Enforcement Division’s Asset Management Unit said. “The SEC has the means to identify investment advisers that abuse their position through cherry-picking, as Glenn and GlennCap did. We use these methods to ensure investor trust in our markets.”
Connecticut Banking Commissioner Issues Bar
Following his settlement with the SEC, Mr. Glenn was also subject to a consent order by the Connecticut Banking Commissioner. As a disclosure on his BrokerCheck record notes, the Commissioner entered the order on February 6, 2024. It alleged that he violated state securities law by engaging in “cherry-picking” on behalf of GlennCap. He received more than $2.7 million “ill[-]gotten gains from the cherry picking and the resulting increase in performance fees attributable to accounts in which gains were assigned more favorably,” according to the allegations. As a result of these findings, the Commissioner barred him from registering in the state for a period of seven years and revoked his investment adviser agent registration.
FINRA: Broker Last Registered in Greenwich, Connecticut
Vince Glenn launched his career as a broker when he registered with Kidder Peabody & Company in 1993. He went on to work at a number of firms, including UBS Painewebber, Morgan Stanley, and Wells Fargo. According to his SEC Investment Adviser Public Disclosure form (IAPD), he was registered with Glenn Capital in Greenwich, Connecticut from 2020 until 2024. He is currently barred from acting as a broker or investment adviser.
Investment Losses? You May Have Recovery Options
Contact MDF Law if you have complaints about investments recommended by Vince Glenn. Our attorneys have proven experience navigating the FINRA arbitration process, securing tens of millions in recoveries for the victims of broker fraud. In addition to taking cases on a contingency basis, we also offer free consultations nationwide. Call 800-767-8040 to speak with one of our seasoned investor advocates today.