Dim-witted fraud
SEC dings NY firm for false B&N bid
It just seemed too good to be true for Barnes & Noble shareholders — and it was.
That’s one takeaway following news Thursday that littleknown New York investment adviser Michael Glickstein and his firm was charged with fraud by federal regulators for announcing in February 2014 that it was ready to acquire 51 percent of bookseller Barnes & Noble for $670 million.
Trouble was, Glickstein’s G Asset Management had neither the cash nor the ability to raise it.
The Post suggested as much in its reporting at the time — and B&N shares never closed near Glickstein’s $22 a share offer.
G Asset also said in a February release that it was interested in buying 51 percent of B&N’s Nook business for $5 a share. Investors responded to the offer by sending B&N’s stock from $17.05 per share to $18.99 in a matter of seconds — enough to temporarily halt trading.
Meanwhile, G Asset, according to court papers filed by the Securities and Exchange Commission, quickly sold at least 3,000 B&N shares and 3,700 B&N call options it had purchased just hours before its purchase announcement.
The move resulted in $175,000 in what the SEC called “illgotten gains and interest” for the 34yearold Glickstein and his firm.
In settling the fraud allegations, G Asset did not admit liability, but Glickstein did agree to give up the $175,000 in profits, plus pay a $100,000 civil fine, the SEC said.
“G Asset had recently purchased thousands of Barnes & Noble shares and shortterm call options, intending to profit by selling the shares and options after issuing the press release,” the SEC said in its order Thursday that charges against G Asset had been settled.
Neither G Asset nor Glickstein could be reached for comment — in part because its listed phone number was no longer in use. The name of its lawyer could not be found.
B&N shares fell 10 cents on Thursday, to $12.97.