2025-02-13 sec-litreleases litigation_release 65 KB 1,613 chars

SEC v. Michael A. Gramins, No. LR-26246, Southern District of New York (Feb. 13, 2025) — Press Release

raw: Michael A. Gramins

Michael A. Gramins, No. 1:15-cv-07045 (S.D.N.Y. Feb. 13, 2025)

Caption
Securities and Exchange Commission v. Shapiro
Source PDF JSON
summary

Former Nomura RMBS trader Michael A. Gramins faced final judgment for fraud involving misrepresentations of mortgage-backed securities prices to inflate firm revenue.

paragraph

Michael A. Gramins, a former trader at Nomura Securities International, was charged with violating Section 10(b) of the Securities Exchange Act and Section 17(a) of the Securities Act. He allegedly misrepresented RMBS bids, offers, and trading spreads to generate additional revenue for Nomura's trading desk. The final judgment entered by the Southern District of New York permanently enjoins Gramins from future violations of federal antifraud provisions.

narrative

The SEC successfully secured a final judgment against Michael A. Gramins, a former residential mortgage-backed securities (RMBS) trader at Nomura Securities International. Gramins was accused of committing fraud by misrepresenting RMBS bids, offers, and trade prices to investors to inflate revenue for Nomura’s trading desk. Specifically, he omitted material information regarding the spreads the firm earned for intermediating trades. The litigation addressed violations of Section 10(b) of the Securities Exchange Act of 1934 and Section 17(a) of the Securities Act of 1933. This final judgment fully resolves the Commission's civil case and permanently enjoins Gramins from future antifraud violations. The enforcement action was handled by the SEC’s Boston Regional Office.

Enriched metadata

Scheme
accounting-fraud (95%)
Court
Southern District of New York
Case No.
1:15-cv-07045
Entity
Michael A. Gramins
Classified accounting-fraud(confidence 95%). EDGAR detection: forms 10-K/10-Q/8-K/NT 10-K· recall 80% / precision 48%. detection rule →
Statutes
Section 17(a) of the Securities ActRule 10b-5
Parties
Securities and Exchange CommissionRoss B. ShapiroPutnam Investments LLCTyler G. PetersAlliancebernstein, L.P.Michael A. Gramins
Keywords
graminsmichael graminssecuritiesnomurasecurities exchangenomura rmbsmichaelrmbsgramins securitiesexchange commissionexchangecommissionfinalagainstlitigation

Exhibits & Attached Documents (2)

Extracted insights

Entities 3
  • person final judgment
  • agency Securities and Exchange Commission
  • court united states district court for the southern district of new york
Triples 11
  • U.S. Securities And Exchange Commission filed civil lawsuit against Michael a. Gramins
  • United States District Court For The Southern District Of New York entered final judgment against Michael a. Gramins
  • Michael a. Gramins made misrepresentations to investors in order to generate additional revenue for Nomura’s Rmbs desk
  • Michael a. Gramins omitted material information to investors in order to generate additional revenue for Nomura’s Rmbs desk
  • Michael a. Gramins misrepresented bids and offers being provided to Nomura for Rmbs
  • Michael a. Gramins misrepresented prices at which Nomura bought and sold Rmbs
  • Michael a. Gramins misrepresented spreads the firm earned for intermediating trades
  • Securities And Exchange Commission charged Michael a. Gramins with violations of Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5
  • Securities And Exchange Commission charged Michael a. Gramins with violations of Section 17(a) of the Securities Act of 1933
  • Final Judgment permanently enjoins Michael a. Gramins from violating antifraud provisions of the federal securities laws
  • Rua Kelly, Al Day, And Celia Moore are handling the case for the Boston Regional Office
PDF (from attached: complaint)
against defendants Ross B. Shapiro (“Shapiro”), Michael A. Gramins (“Gramins”), and Tyler G. · Source
Text layers
Extracted body text (1,613c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26246 / February 13, 2025 Securities and Exchange Commission v. Michael A. Gramins, Civil Action No. 1:15-cv-07045 (S.D.N.Y filed Sept. 08, 2015) Court Enters Final Judgment Against Former Nomura Rmbs Trader Michael A. Gramins On January 28, 2025, the United States District Court for the Southern District of New York entered final judgment in a previously filed civil lawsuit that included allegations of fraud against defendant Michael A. Gramins, a former trader on the residential mortgage-backed securities (“RMBS”) trading desk at broker-dealer Nomura Securities International (“Nomura”) in New York. This settlement fully resolves the Commission’s case against Gramins. The SEC complaint alleged that Gramins made misrepresentations and omitted material information to investors in order to generate additional revenue for Nomura’s RMBS desk. Among other things, Gramins allegedly misrepresented the bids and offers being provided to Nomura for RMBS, as well as the prices at which Nomura bought and sold RMBS, and the spreads the firm earned for intermediating trades. The SEC’s complaint charged Gramins with violations of Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 as well as Section 17(a) of the Securities Act of 1933. The final judgment permanently enjoins Gramins from violating these antifraud provisions of the federal securities laws. The case is being handled by Rua Kelly, Al Day, and Celia Moore of the Boston Regional Office. For further information see Litigation Release No. 23336 (Sept. 8, 2015).
OCR text (1,613c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26246 / February 13, 2025 Securities and Exchange Commission v. Michael A. Gramins, Civil Action No. 1:15-cv-07045 (S.D.N.Y filed Sept. 08, 2015) Court Enters Final Judgment Against Former Nomura Rmbs Trader Michael A. Gramins On January 28, 2025, the United States District Court for the Southern District of New York entered final judgment in a previously filed civil lawsuit that included allegations of fraud against defendant Michael A. Gramins, a former trader on the residential mortgage-backed securities (“RMBS”) trading desk at broker-dealer Nomura Securities International (“Nomura”) in New York. This settlement fully resolves the Commission’s case against Gramins. The SEC complaint alleged that Gramins made misrepresentations and omitted material information to investors in order to generate additional revenue for Nomura’s RMBS desk. Among other things, Gramins allegedly misrepresented the bids and offers being provided to Nomura for RMBS, as well as the prices at which Nomura bought and sold RMBS, and the spreads the firm earned for intermediating trades. The SEC’s complaint charged Gramins with violations of Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 as well as Section 17(a) of the Securities Act of 1933. The final judgment permanently enjoins Gramins from violating these antifraud provisions of the federal securities laws. The case is being handled by Rua Kelly, Al Day, and Celia Moore of the Boston Regional Office. For further information see Litigation Release No. 23336 (Sept. 8, 2015).

Related documents (2)