FINRA

RESPONDENT MYERS FAILED TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

LETTER

Suspension

ANY CAPACITY

N/A

3/27/2015

PURSUANT TO ARTICLE VI, SECTION 3 OF FINRA BY-LAWS, AND FINRA RULE 9554, RESPONDENT MYERS IS SUSPENDED ON MARCH 27, 2015 FOR FAILURE TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

BREACH OF FIDUCIARY DUTY; UNSUITABILITY; FRAUD; VIOLATIONS OF THE SECURITIES EXCHANGE ACT OF 1934 AND THE INVESTMENT ADVISORS ACT OF 1940

$83,264.00

The Award has not been paid.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC ADMIN RELEASE 34-67709, IA RELEASE 3448, INVESTMENT COMPANY ACT OF 1940 RELEASE 30179, AUGUST 22, 2012: THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION (THE "COMMISSION") DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE INSTITUTED PURSUANT TO SECTIONS 15(B) AND 21C OF THE SECURITIES EXCHANGE ACT OF 1934 ("EXCHANGE ACT"), SECTIONS 203(E), 203(F), AND 203(K) OF THE INVESTMENT ADVISERS ACT OF 1940 ("ADVISERS ACT"), AND SECTION 9(B) OF THE INVESTMENT COMPANY ACT OF 1940 ("INVESTMENT COMPANY ACT") AGAINST NOAH L. MYERS ("MYERS") AND HIS INVESTMENT ADVISER FIRM (COLLECTIVELY, "THE RESPONDENTS"). THE DIVISION OF ENFORCEMENT ALLEGES THAT FROM APPROXIMATELY OCTOBER 2008 TO FEBRUARY 2011 (THE "RELEVANT PERIOD"), NOAH L. MYERS, THE SOLE OWNER OF A FIRM, ENGAGED IN FRAUDULENT TRADE ALLOCATION - "CHERRY-PICKING" - AT THE FIRM. DURING THE RELEVANT PERIOD, THE FIRM WAS A REGISTERED INVESTMENT ADVISER. MYERS EXECUTED HIS CHERRY-PICKING SCHEME BY UNFAIRLY ALLOCATING TRADES THAT HAD APPRECIATED IN VALUE DURING THE COURSE OF THE DAY TO HIS PERSONAL AND BUSINESS ACCOUNTS AND ALLOCATING TRADES THAT HAD DEPRECIATED IN VALUE DURING THE DAY TO THE ACCOUNTS OF HIS ADVISORY CLIENTS. HE DID THIS BY PURCHASING SECURITIES IN AN OMNIBUS ACCOUNT AND DELAYING ALLOCATION OF THE PURCHASES UNTIL LATER IN THE DAY (AND SOMETIMES THE NEXT DAY), AFTER HE SAW WHETHER THE SECURITIES APPRECIATED IN VALUE. WHEN A SECURITY APPRECIATED IN VALUE ON THE DAY OF PURCHASE, MYERS WOULD OFTEN SELL THE SECURITY AND DISPROPORTIONATELY ALLOCATE THE PURCHASE AND THE REALIZED DAY-TRADING PROFIT TO HIS OWN ACCOUNTS OR ACCOUNTS BENEFITING HIMSELF OR HIS FAMILY MEMBERS. IN CONTRAST, FOR SECURITIES THAT DID NOT APPRECIATE ON THE DAY OF PURCHASE, MYERS WOULD DISPROPORTIONATELY ALLOCATE THESE PURCHASES TO HIS CLIENTS' ACCOUNTS AND HIS CLIENTS WOULD HOLD THE POSITION FOR MORE THAN ONE DAY. MYERS CARRIED OUT HIS CHERRY-PICKING SCHEME WITH REGARD TO SEVERAL SECURITIES, BUT WAS MOST ACTIVE WITH AN INVERSE AND LEVERAGED EXCHANGE TRADED FUND (ETF). MYERS FINALLY CEASED THESE PRACTICES IN FEBRUARY 2011 WHEN ONE OF HIS EMPLOYEES THREATENED TO CONTACT THE COMMISSION. AS A RESULT OF HIS FRAUD, MYERS REALIZED ILL-GOTTEN GAINS OF APPROXIMATELY $460,000. MYERS'S CHERRY-PICKING SCHEME ALSO RESULTED IN MORE THAN $2 MILLION IN CLIENT LOSSES FROM HIS TRADING IN THE INVERSE AND LEVERAGED ETF. NEITHER THE FIRM NOR MYERS DISCLOSED TO CLIENTS THAT THEY WERE ENGAGED IN CHERRY-PICKING AND THAT THEY WOULD FAVOR MYERS' ACCOUNTS IN THE ALLOCATION OF APPRECIATED SECURITIES. IN ADDITION, MYERS AND THE FIRM FAILED TO FOLLOW THE POLICIES STATED IN THE FIRM'S ADV CONCERNING TRADE ALLOCATION. BY VIRTUE OF THEIR CONDUCT, THE RESPONDENTS WILLFULLY VIOLATED SECTION 10(B) OF THE EXCHANGE ACT [15 U.S.C. §§78J(B)] AND RULE 10B-5 [17 C.F.R. §§240.10B-5] PROMULGATED THEREUNDER, AND SECTIONS 206(1) [15 U.S.C. §80B-6(1)], 206(2) [15 U.S.C. §80B-6(2)] AND 207 [15 U.S.C. §80B-7] OF THE ADVISERS ACT.

Order

Bar (Permanent)

ASSOCIATION WITH ANY BROKER, DEALER, IA, MUNICIPAL SECURITIES DEALER OR ADVISOR, TRANSFER AGENT, OR NAT'L STATS ORG, ETC.

1/16/2013

Cease and Desist

Civil and Administrative Penalty(ies)/Fine(s)

$300,000.00

Disgorgement

$462,022.00

Monetary Penalty other than Fines

$26,096.00

Prohibition