{"id":4881,"date":"2018-02-22T20:16:46","date_gmt":"2018-02-23T02:16:46","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=4881"},"modified":"2022-05-17T14:28:51","modified_gmt":"2022-05-17T19:28:51","slug":"investor-fraud-strong-investment-management-faces-allegations-cherry-picking-2-5m-financial-scam-leads-convictions-former-investment-adviser-sentenced-serve-prison-time","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/investor-fraud-strong-investment-management-faces-allegations-cherry-picking-2-5m-financial-scam-leads-convictions-former-investment-adviser-sentenced-serve-prison-time\/","title":{"rendered":"Investor Fraud: Strong Investment Management Faces Allegations of Cherry Picking, a $2.5M Financial Scam Leads to Convictions, and a Former Investment Adviser Is Sentenced to Serve Prison Time"},"content":{"rendered":"<p>&nbsp;<\/p>\n<h2><strong>SEC Accused Investment Adviser of Profiting from Cherry Picking<\/strong><\/h2>\n<p>The US Securities and Exchange Commission has filed a civil fraud case against Strong Investment Management, which is a California-based investment adviser, and its president\/owner Joseph B. Bronson. The regulator is accusing them of running a <a href=\"https:\/\/www.stockbroker-fraud.com\" target=\"_blank\" rel=\"noopener noreferrer\">cherry picking scam<\/a> that defrauded the firm\u2019s clients.<\/p>\n<p>The Commission contends that Bronson used Strong\u2019s omnibus account to trade securities but would wait to see how they performed during the day before distributing them to certain client accounts. Meantime, Bronson purportedly made healthy profits at cost to clients by cherry picking the trades. He is accused of giving himself trades that were profitable while sending unprofitable ones to firm clients.<\/p>\n<p>The SEC\u2019s complaint contends that in Forms ADV, Bronson and Strong misrepresented trading and allocation practices by falsely stating that every trade would be allocated according to the terms of pre-trade allocation statements with no preference granted to any account. Bronson\u2019s brother, ex-Strong chief compliance officer John B. Engebreston, is accused of not fulfilling his job by failing to make sure that Strong\u2019s policies and procedures for trade allocation were followed. He also is accused of \u201crepeatedly\u201d ignoring \u201cred flags\u201d when it came to Strong\u2019s allocation practices.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/investor-fraud-strong-investment-management-faces-allegations-cherry-picking-2-5m-financial-scam-leads-convictions-former-investment-adviser-sentenced-serve-prison-time\/#more-4881\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; SEC Accused Investment Adviser of Profiting from Cherry Picking The US Securities and Exchange Commission has filed a civil fraud case against Strong Investment Management, which is a California-based investment adviser, and its president\/owner Joseph B. Bronson. The regulator is accusing them of running a cherry picking scam that defrauded the firm\u2019s clients. The [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3781,3738,3801,3760,3741],"tags":[2666,2975,2976],"class_list":["post-4881","post","type-post","status-publish","format-standard","hentry","category-investment-advisers","category-investor-fraud","category-sec","category-sec-enforcement","category-securities-fraud","tag-cherry-picking","tag-investor-fraud","tag-strong-investment-management"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Investor Fraud: Strong Investment Management Faces Allegations of Cherry Picking, a $2.5M Financial Scam Leads to Convictions, and a Former Investment Adviser Is Sentenced to Serve Prison Time | SSEK Law Firm Blog<\/title>\n<meta name=\"description\" content=\"Learn More About These Investor Fraud Cases: Strong Investment Management Faces Allegations of Cherry Picking, a $2.5M Financial Scam Leads to Convictions, and a Former Investment Adviser Is Sentenced to Serve Prison Time.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/investor-fraud-strong-investment-management-faces-allegations-cherry-picking-2-5m-financial-scam-leads-convictions-former-investment-adviser-sentenced-serve-prison-time\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Investor Fraud: Strong Investment Management Faces Allegations of Cherry Picking, a $2.5M Financial Scam Leads to Convictions, and a Former Investment Adviser Is Sentenced to Serve Prison Time | SSEK Law Firm Blog\" \/>\n<meta name=\"twitter:description\" content=\"Learn More About These Investor Fraud Cases: Strong Investment Management Faces Allegations of Cherry Picking, a $2.5M Financial Scam Leads to Convictions, and a Former Investment Adviser Is Sentenced to Serve Prison Time.\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; 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