Financial Enforcement Actions | Week of April 04 to April 10
Respondent: Neil Bartlett
Violation: Mr Bartlett is not a fit and proper person to perform any function in relation to any regulated activity carried on by any authorised person, exempt person or exempt professional firm as his conviction demonstrate a clear and serious lack of honesty and integrity... Read More
Respondent: Cantor Fitzgerald & Co.,
Violation: Respondent has submitted an Offer of Settlement (“Offer” that the Commission has determined to accept. Respondent admits the facts set forth in Section III. below, acknowledges that its conduct violated the federal securities laws, admits the Commission’s jurisdiction over it and the subject matter of these proceedings, and consents to the entry of this Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 15(b and 21C of the Securities Exchange Act of 1934... Read More
Respondent: Douglas Leighton et al
Violation: The SEC's complaint, filed in federal court in Boston, alleges that Leighton orchestrated the fraud after acquiring millions of shares in MassRoots, Inc., a cannabis-social-media company now based in Los Angeles, California. As alleged, when MassRoots began selling its shares to the public in April 2015, Leighton directed Michael Sullivan, David Hall, Zachary Harvey, Paul Dutra, Jason Harman, and Jessica Geran to manipulate the public market for MassRoots stock, including by making openmarket purchases at specific volumes and prices to create an appearance of active trading in and increase the price of MassRoots stock. According to the complaint, Sullivan also used accounts at two separate broker dealers to further create an appearance of volume in and affect the price of MassRoots stock... Read More
Respondent: International Investment Group, LLC.
Violation: Defendant is permanently restrained and enjoined from violating Sections 206(1 and 206(2 of the Investment Advisers Act of 1940 (the “Advisers Act” [15 U.S.C. §§ 80(b-6(1 and 80(b- 6(2], by, while acting as an investment adviser, using any means or instrumentalities of interstate commerce, or any means or instruments of transportation or communication in interstate commerce, or by the mails or any facility of any national securities exchange: (a to employ any device, scheme, or artifice to defraud any client or prospective client; (b to engage in any transaction, practice, or course of business which operates as a fraud or deceit upon any client or prospective client; or (c to engage in any acts, practices, or courses of business which are fraudulent, deceptive, or manipulative... Read More
Respondent: Fortress Investment Management, LLC and William M. Malloy, III
Violation: The Division of Enforcement (“Division” has requested an extension of time until November 30, 2020 to submit a Proposed Plan of Distribution under Rule 1101(a of the Commission’s Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1101(a. On February 27, 2020, the Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 203(e, 203(f and 203(k of the Investment Advisers Act of 1940 and Section 9(b of the Investment Company Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order (“Order”1 against Fortress Investment Management, LLC (“Fortress” and William M. Malloy, III (“Malloy” (collectively, the “Respondents”. These proceedings arose from improper Commission registration and failure to disclose a conflict of interest involving Malloy and two investment adviser firms under his control, MWM 1835, LLC (“MWM” and Fortress... Read More
Respondent: Geofrey J. Thompson
Violation: The Securities and Exchange Commission (“Commission” deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 203(f of the Investment Advisers Act of 1940 (“Advisers Act” against Geoffrey J. Thompson (“Thompson” or “Respondent”... Read More
Respondent: Ieremenko et al.
Violation: According to the SEC's complaint, Kwon of California, Sabodakha of Ukraine, and seven other defendants participated in a scheme to hack into EDGAR and extract material, nonpublic information to use for illegal trading. The complaint alleged that a Ukrainian hacker extracted EDGAR files containing nonpublic earnings results. Kwon and Sabodakha allegedly traded on the basis of this hacked information in the narrow window of time between when the files were extracted from EDGAR and when the information was released to the public. Sabodakha also allegedly previously traded based on material nonpublic information obtained through the hack of at least two newswire services... Read More
Respondent: Jeffrey D. Cordes et al.
Violation: The SEC's complaint, filed in the U.S. District Court for the Northern District of Texas, alleges that Cordes, Aisenberg, and Felton violated the antifraud provisions of Sections 17(a)(1) and (3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and 10b-5(c) thereunder, or in the alternative that Felton aided and abetted these violations by Cordes and Aisenberg. The complaint further alleges that Cordes and Aisenberg violated Section 10(b) of the Exchange Act and Rule 10b-5(b) thereunder. The complaint also charges Cordes, Aisenberg, and Felton with violating the reporting, books and records, and internal accounting control provisions of Sections 13(a), 13(b)(2)(A), and 13(b)(5) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11, 13a-13, 13b2-1, and 13b2-2 thereunder, and Cordes and Aisenberg with violating Section 13(b)(2)(B) of the Exchange Act and Rule 13a-14 thereunder... Read More