Finra slaps $20,000 fine on former JMP Securities analyst

Michael King Jr. wrote research reports on the company offering him a job.
OCT 31, 2019
The Financial Industry Regulatory Authority Inc. has suspended former JMP Securities analyst Michael King Jr. for 14 months and fined him $20,000 for writing research reports on a company with which he was engaged in employment discussions. Beginning in late February 2018, Mr. King held advanced employment discussions with the chairman of one of the 38 companies he followed in the biotechnology sector. On March 20, 2018, Mr. King received an offer letter from the company and on April 11, 2018, accepted the offer. Between March 16 and April 23, 2018, however, he co-authored five research reports on the company without disclosing in any of the reports the material conflict of interest arising from his employment discussions. One of the reports reiterated his market outperform rating. During the two weeks after Mr. King received the employment offer, his firm published three more reports co-authored by the analyst about the company. Since May 2018, Mr. King has held the title of entrepreneur in residence at Fortress Biotech. [Recommended video: Protecting against the insider cybersecurity threat]

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