Calabasas Stockbroker Charged with Stock Manipulation

FINRA alleged that Scott Neal Glazer engaged in matched trading in an attempt to manipulate the price of National Technical Systems, Inc. (“NTSC”) stock and avoid margin calls.

From January 2009 through December 2011, Mr. Glazer employed “manipulative and deceptive devices” when buying and selling NTSC shares, a Nasdaq security. Mr. Glazer personally owned significant quantities of NTSC stock and influenced the stock through matched trading in order to prevent a margin call.

Mr. Glazer entered into a Margin Lending Portfolio with an undisclosed brokerage firm that loaned Mr. Glazer money against the value of NTSC stocks in his account. Working in concert with others, Mr. Glazer engaged in matched trading in order to increase the price of NTSC stock.

Mr. Glazer would buy or sell shares of NTSC stock when he knew that a substantially offsetting transaction was going to be entered into by someone else. This kind of misleading act makes NTSC stock appear far more robust and profitable than it was. Ultimately, trading on margin makes it possible to lose your initial investment and still owe the money you borrowed from a brokerage firm plus interest. So, Mr. Glazer engaged in matched trading to stabilize and increase the price of NTSC stock and, ultimately, avoid the risk of a margin call.

Mr. Glazer clearly acted to protect himself from losing money. However, not only were his actions illegal and justifiably so, but his misrepresentation of the NTSC stock made it more appealing to the general investing public. His manipulation of the market shined an overly flattering light on the stock and made it appear far more lucrative than it was. So, anyone buying or selling NTSC stock during the time Mr. Glazer was involved in match trading could have a viable claim against him or the brokerage firm who should have been supervising his actions more closely.

If you think your stock broker has broken rules governing the securities industry or engaged in stock manipulation, you may have a claim. Contact Investor Defense Law to see if you can recover your losses.

Investor Defense Law LLP is a law firm dedicated to helping investors in California, Georgia, and Washington recover losses caused by stockbrokers, financial advisers, or investment firms. To learn more, contact an investment fraud attorney at 800.487.4660.