The Securities and Exchange Commission has charged a former investment advisor and registered rep with trading stock on material nonpublic information. The agency claims that New York-based Jack Brewer, former registered rep and owner of investment advisory Brewer Capital Management and a related consulting firm, Brewer Group, sold over $100,000 worth of COPsync shares, knowing the company was set to make an announcement that would cause the price to fall.
Brewer consulted for COPsync, a technology company that connects law enforcement officers across the nation, through his consulting firm. That’s how he obtained information that COPsync was going to do a stock offering. And while a purchase agreement obligated him not to sell any shares of the company prior to the announcement, he went ahead and sold his shares on Jan. 4 and 5, 2017, pocketing about $35,000 in profits, according to the SEC.
The SEC also claims that Brewer’s investment advice firm failed to comply by its written policies and procedures to prevent the abuse of material nonpublic information.
Separately, during a two-year period, Brewer was operating as a broker without being registered with a broker/dealer or being registered with the SEC.
The agency is hoping for a permanent injunction, disgorgement with prejudgment interest, a civil penalty and a bar on penny stocks.