While freezing the asset, the market regulator claimed that the accused wrongfully placed trades using his wife’s accounts before carrying large block trades for companies’ clients, which can increase the stock’s price.
More than $520,000 was collected in improper profit as the equity trader regularly bought securities and placed huge orders for the same securities on behalf of firm clients.
SEC’s Fort Worth Regional Office director David R Woodcock commented, "Bergin’s misconduct is particularly egregious because his firm depended on him to manage market exposure and risk for its investments. Instead, he pitted his clients’ financial interests against his own."
The market regulator has accused Bergin for violating the Securities Exchange Act of 1934 and among other regulations and has sought disgorgement, prejudgement interest, and a fine as well as a permanent injunction against him.
