Mаnley is аn investment аdviser fоr a regiоnal bank with a number оf discretionary, fee-based accounts for high-net-worth individuals. The bank’s internal policies and procedures permit trade error corrections for up to 30 days following a failure to place a trade. The policy is intended to address errors in which an adviser fails to send an order to the trade desk. To rectify the error, the adviser is permitted to buy or sell a security at the current market price, with the price differential charged to the adviser personally through an internal error account. On many occasions, Manley uses the trade error correction policy to benefit clients who are unhappy with their account performance. Manley identifies a security whose price has increased in the last 30 days. He then tells the trade desk that he had mistakenly failed to buy that particular security some days before when the price was substantially lower than the current market price. Once the request is approved, the trade desk purchases the security and charges the price differential to Manley personally through the error account. Shortly thereafter, Manley sends an order to sell the security and net a profit for the client. Manley then tells the client that he had “flipped” them a profitable trade or has given them a “gift” or “no-risk” trade. Manley’s actions are