Jordan Paul Meadow Barred by FINRA Over Alleged Insider Trading

The U.S. Court of Appeals for the Second Circuit has rejected Morgan Stanley’s latest attempt to avoid Vetting a broker means evaluating not just their financial performance but also how they handle conflicts of interest and uphold ethical standards. When an unscrupulous broker chooses to disregard these standards and ethics, they harm their clients and the financial institutions that employ them. This is exactly what happened to Jordan Paul Meadow (CRD #: 6116538), who had previously been a registered stockbroker  with Spartan Capital Securities, LLCin New York, New York.

The Financial Industry Regulatory Authority (FINRA) barred Meadow (Case No. 2018056490326) after he refused to provide on-the-record testimony during an investigation into potentially excessive trading activity. FINRA formally requested his appearance on February 14, 2025, but Meadow,through his attorney, declined violating FINRA Rules 8210 and 2010 resulting in a permanent bar from associating with FINRA member firms in any capacity.

Jordan Paul Meadow’s 10-Year Employment and Licensing Record

Before being barred by FINRA, Jordan Paul Meadow spent nearly a decade working for multiple brokerage firms across New York. His registration history includes:

• Saxony Securities, Inc. (Dec 2012 – Sep 2013)
• Reid & Rudiger LLC (Oct 2013 – Oct 2014)
• Maxim Group LLC (Nov 2014 – Apr 2017)
• Newbridge Securities Corporation (Mar 2017 – Jul 2018)

These first four employers were firms where Meadow had employment lasting from one to three years. However, his next and final employment lasted up to five years at Spartan Capital Securities, LLC in New York, New York, from July 2018 to June 2023. In addition, Meadow had passed the following exams: Series 7, Series 63 and the SIE (Securities Industry Essentials Examination).

SEC Allegations of Meadow’s Insider Trading Scheme

Jordan Paul Meadow’s allegations of insider trading began on June 29, 2023, when the Securities and Exchange Commission (SEC) initiated a complaint: Security and Exchange Commission v. Jordan Meadow and Steven Teixeira, Case No. 1:23-cv-05573, filed in the U.S. District Court for the Southern District of New York. 

The SEC’s complaint alleges that a scheme involving Jordan Paul Meadow and Steven Teixeira centered on insider trading in the securities of several issuers based on material nonpublic information (MNPI). Teixeira was in a romantic and live-in relationship with an executive assistant who worked at a New York investment bank during this period. 

From late 2020 to May 2022, Teixeira misappropriated material nonpublic information from the executive assistant’s laptop as the two had worked from their shared apartment during the COVID-19 pandemic. 

The information misappropriated by Teixeira primarily involved mergers and acquisitions handled by his romantic partner’s investment bank and its clients. Teixeira would use this information to purchase call options on several securities, including those of Domtar Corporation, Proofpoint, Inc., Score Media, Gaming, Inc. and VMWare, Inc., in which his illicit profits on these trades exceeded $28,000. He ultimately shared the nonpublic information with several friends, including one who passed it to Meadow, who then tried to compensate them with Rolex watches.

Additionally, as a registered New York broker, Meadow used the misappropriated material nonpublic information to take positions in several securities being influenced by insider information. His illicit profits exceeded $730,000, and further trades coordinated with a fellow broker ultimately generated millions of dollars through well-timed transactions that benefited their personal accounts and those of their brokerage clients while also earning them hundreds of thousands of dollars in commissions. Per the SEC allegations, the defendants had violated both Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.

Why Excessive Trading Puts Investors and Firms at Risk

Excessive trading occurs when a client is charged more for an increase in trades by the registered broker, who may have an incentive to perform the task more frequently. The broker may recommend a level and type of activity that does not align with the client’s investment goals, risk tolerances and financial circumstances, which can also lead to a form of securities fraud known as “churning”. 

Both transparency and compliance are core principles in financial regulation. This is why firms and clients rely on it for accuracy in records and analytical reports. However, when brokers decide to act outside of the oversight structures, they put everyone at risk. Most importantly, it erodes the firm’s integrity and investor trust. When this occurs, both credibility and reputation decline and it takes time to repair the damage and regain client trust.

Red Flags for Investors

In cases such as this one, clients should be cautious if their brokers are trading excessively and beyond the risk expectations that were previously discussed. Additionally, if the trading appears well-timed, it is worth investigating further to determine if there are any potential issues of insider trading. 

Be on the lookout for the following red flags:

• You were charged for more trades than you were expecting.
• You notice more frequent trades in your records than prior to the shift.
• You notice an unexpected change or fluctuation in your risk and portfolio value during this period.
• Your broker discourages you from inquiring about the sudden changes in the portfolio value and what influenced them to execute the trades.
• You’ve been notified that your broker is being investigated for alleged insider trading, and they refuse to offer on-the-record testimony to the regulator.

If you have any suspicions that insider trading is occurring from your broker, it may be time to consult a securities attorney to determine if the potential red flags are either true or false.

Protect Your Rights With Sonn Law Group

If you were a client of Jordan Paul Meadow and suspect possible ties to insider trading, it’s important to have your account reviewed for any irregularities.

Sonn Law Group represents investors across the U.S. in claims against brokers, brokerage firms, banks and insurance companies. The firm handles cases involving negligence, fraud, regulatory violations and investment losses. Our firm operates on a contingency fee basis, so clients pay nothing unless we successfully recover funds on your behalf.

To discuss your situation, please call us at 833-912-3000 or complete our contact form for a free, confidential consultation.