NEW YORK, Oct. 10, 2014 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (www.nasd-law.com) announced today that it is investigating Halcyon Cabot Partners, Ltd. and Meyers Associates relating to the supervision of Craig L. Josephberg ("Josephberg") and the sale of CodeSmart Holdings, Cubed, Inc., StarStream and The Staffing Group, Ltd. stock. In July of this year, the U.S. Securities and Exchange Commission ("SEC") charged individuals, including Josephberg, alleging that they pocketed millions of dollars running an elaborate pump-and-dump scheme. Josephberg was also indicted in the U.S. District Court Eastern District of New York.
According to the Indictment, "in or about and between October 2012 and July 2014, the defendants, [including Josephberg a/k/a 'Jobo'], agreed to defraud investors and potential investors in CodeSmart, Cubed, StarStream and Staffing Group…by artificially controlling the price and volume of traded shares in [these companies] through…(a) false and misleading press releases; (b) false and misleading SEC filings; (c) fraudulent concealment of the defendants' and their co-conspirators' ownership interests; (d) engineering price movements and trading volume in the stocks; and (e) unauthorized purchases of stock in accounts of unwitting investors."
During the time period at issue, Josephberg was registered with FINRA broker-dealers Halcyon Cabot Partners, Ltd. and Meyers Associates. Under FINRA Rules, Halcyon Cabot Partners, Ltd. and Meyers Associates were obligated to properly supervise the activities of Josephberg during the time he was registered with the brokerage firms. Accordingly, Halcyon Cabot Partners, Ltd. and/or Meyers Associates may be liable for failing to supervise Josephberg's activities while registered at the respective brokerage firms.
If you have information relating to this investigation, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at www.nasd-law.com.