SEC charges former J.P. Turner trader with entering fake trades

Agency says Salvadore Palermo paid customers above-market prices for CDs

Aug 8, 2018 @ 4:26 pm

By InvestmentNews

The Securities and Exchange Commission has charged a former employee of J.P. Turner & Co. with entering fictitious sales of market-linked certificates of deposit in order to avoid the firm's inventory limitations for the fixed-income products.

Seeking an injunction and civil penalties, the SEC charged that Salvadore D. Palermo paid above-market prices to the firm's customers to acquire the securities and then held them in inventory. To avoid J.P. Turner's inventory limitations, he entered dozens of fictitious trades over a seven-month period, beginning in August 2014, the SEC charged.

As a result of the sham transactions, the SEC said, the firm's trade blotters and asset and revenue account balances were incorrect, causing J.P. Turner to file inaccurate monthly regulatory reports between August 2014 and February 2015.

Mr. Palermo was discharged by J.P. Turner in July 2015 and joined First Southern Securities in Alpharetta, Ga.

(More: Money markets undergo sea change)


What do you think?

View comments

Recommended for you

Featured video


What it took to win an Excellence in Diversity & Inclusion Award

Editor Fred Gabriel and special projects editor Liz Skinner explain how InvestmentNews chose the winners of our inaugural Excellence in Diversity & Inclusion Awards.

Latest news & opinion

10 highest paid professions in America today

These are the top-paying jobs in the U.S., according to Glassdoor.

Ameriprise to pay $4.5 million to settle SEC charges that five reps stole more than $1 million from clients

Agency censures firm for not protecting clients from thieving brokers.

SEC slaps Lockwood with $200,000 fine over unseen trading costs to clients

Clients were forced to pay fees in addition to the usual wrap charges, the regulator maintains.

Gotcha! 10 lessons from brokers gone bad

These cases show why regulators nabbed reps and firms, and how to avoid their fate.

Tax-credit investigation may trip up Wells Fargo

Justice Department is investigating bank's dealings in tax credits for low-income housing, sources say.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print