An Offer of Settlement was issued in which Nemer was assessed a deferred fine of $20,000 and suspended from association with any FINRA member in all capacities for two years. Without admitting or denying the allegations, Nemer consented to the sanctions and to the entry of findings that he published multiple research reports on a company while engaged in employment discussions with that company and failed to disclose his conflict of interest, either to his member firm or in the research reports concerning the company. The findings stated that Nemer authored a research report on the company and failed to disclose in the research report that he had a financial interest in the company’s securities, as a result of his acceptance of an employment offer from the company that was inclusive of the company’s securities. Nemer did not disclose to his member firm his employment discussions with and acceptance of an employment offer from the company to,in part, preserve his ability to receive his annual bonus from the firm. As planned, Nemer resigned from the firm, after receiving his annual bonus with the intent to join the other company. The company rescinded its employment offer to Nemer during the employment retention period following his resignation from his firm. The findings also stated that Nemer failed to disclose material conflicts of interest in five research reports he authored. As a result of Nemer’s failure to disclose those material conflicts of interest, these research reports that were published were misleading. In addition, Nemer failed to disclose his financial interest in a covered company in a research report he authored that was published. As a result of Nemer’s failure to disclose his financial interest, that research report was misleading. The suspension is in effect from October 2, 2017, through October 1, 2019. (FINRA Case #2016051925301)
