Financial Enforcement Actions | Week of Apr 21 to Apr 26

Financial Enforcement Actions | Week of Apr 21 to Apr 26

Financial Enforcement Actions | Week of Apr 21 to Apr 26

Penalties: N/A
Respondent: Jack Boxall (trading as JB Motors)
Violation: Mr. Boxall is failing to satisfy the suitability Threshold Condition, in that the Authority is not satisfied that Mr. Boxall is a fit and proper person having regard to all the circumstances, including whether Mr. Boxall managed his business in such a way as to ensure that his affairs were conducted in a sound and prudent manner… Read More

Penalties: N/A
Respondent: First Quality Finance Ltd
Violation: FQFL is failing to satisfy the suitability Threshold Condition, in that the Authority is not satisfied that FQFL is a fit and proper person having regard to all the circumstances, including whether FQFL managed its business in such a way as to ensure that its affairs were conducted in a sound and prudent manner… Read More

Penalties: N/A
Respondent: Paul Dennison (trading as Yes Car Contracts)
Violation: Mr. Dennison is failing to meet the suitability Threshold Condition, in that the Authority is not satisfied that Mr. Dennison is a fit and proper person having regard to all the circumstances, including whether Mr. Dennison managed his business in such a way as to ensure that his affairs were conducted in a sound and prudent manner… Read More

Penalties: N/A
Respondent: Scott Hawkins (trading as Home Supplies)
Violation: Mr. Hawkins is failing to satisfy the suitability Threshold Condition, in that the Authority is not satisfied that Mr. Hawkins is a fit and proper person having regard to all the circumstances, including whether Mr. Hawkins managed his business in such a way as to ensure that his affairs were conducted in a sound and prudent manner… Read More

Penalties: N/A
Respondent: James V. Grago, Jr.
Violation: Respondent is James V. Grago, Jr. (“Grago”), individually and doing business as ClixSense.com (“ClixSense”), which operates as a sole proprietorship with its principal office or place of business in Hampstead, North Carolina. Respondent Grago is the sole owner of ClixSense. Individually or in concert with others, he controlled or had the authority to control, or participated in the acts and practices alleged in this complaint… Read More

Penalties: N/A
Respondent: Surescripts LLC
Violation: Surescripts, a health information technology company, has engaged in a longrunning anticompetitive scheme to maintain its monopolies over two separate, complementary markets: electronic prescription routing (“routing”) and eligibility, which are often collectively referred to as “e-prescribing.”… Read More

Penalties: N/A
Respondent: Unixiz, Inc.
Violation: Defendants’ privacy policy failed to include information that the COPPA Rule requires operators of child-directed Web sites to disclose, such as the operator’s name, address, telephone number, and email address… Read More

CFTC

1 Enforcement Document

$0.00 in Fines

Penalties: N/A
Respondent: Oasis International Group, Mainstream Fund Services, Inc.
Violation: Defendants OIG, OM, and Satellite Holdings (acting as a common enterprise), by and through their officers, employees and agents and Defendants DaCorta, Montie, Duran, and Haas, in connection with retail forex transactions, knowingly or recklessly: (1) cheated or defrauded or attempted to cheat or defraud pool participants; (2) made or caused to be made false account statements; or (3) deceived or attempted to deceive pool participants by any means… Read More

FINRA

9 Enforcement Documents

$245,554.00 in Fines

Penalties: N/A
Respondent: Nelson Freyre-Gallardo
Violation: “FINRA staff sent a request to FreyreGallardo for on-the-record testimony pursuant to FINRA Rule 8210. Freyre-Gallardo acknowledges that he received FINRA’s request and will not appear for on-the-record testimony on the scheduled date or at any time. By refusing to appear for on-the-record testimony as requested pursuant to FINRA Rule 8210, Freyre-Gallardo violates FINRA Rules 8210 and 2010.”… Read More

Penalties: $5,000.00
Respondent: Guy Michael Cheatham
Violation: Cheatham failed to timely disclose three reportable events via the timely filing of an amended Uniform Application for Securities Industry Registration or Transfer (“Form U4”). Specifically, between 2011 and 2013, Cheatham received notice that three tax liens had been entered against him. However, he did not disclose the tax liens to Kestra, and did not update his Form U4 to reflect the liens until 2016 and 2017. By failing to timely amend his Form U4 to reflect these reportable events, Cheatham violated Article V, Section 2(c) of FINRA’s By-Laws and FINRA Rules 1122 and 2010… Read More

Penalties: $5,000.00
Respondent: Steven E. Zerbarini
Violation: Zerbarini improperly exercised discretionary trading authority in effecting 67 trades in 51 nondiscretionary customer accounts. By exercising such discretion without prior written authorization, Zerbarini violated NASD Rule 2510(b) and FINRA Rule 2010… Read More

Penalties: N/A
Respondent: Voya Financial Advisors, Inc.
Violation: Voya disadvantaged certain retirement plan and charitable organization customers that were eligible to purchase Class A shares in certain mutual funds without a frontend sales charge (“Eligible Customers”). These Eligible Customers were instead sold Class A shares with a front-end sales charge or Class B or C shares with back-end sales charges and higher ongoing fees and expenses… Read More

Penalties: $5,000.00
Respondent: James E. Bashaw
Violation: On three occasions in 2013, while registered through LPL, Bashaw borrowed a total of approximately $200,000 from a customer without notifying LPL, in violation of FINRA Rules 3240 and 2010… Read More

Penalties: N/A
Respondent: Arnold Schonbrun
Violation: In April 2019, Schonbrun refused to appear for testimony requested pursuant to FINRA Rule 8210, thereby violating FINRA Rules 8210 and 2010… Read More

Penalties: N/A
Respondent: Janet Lynn Derrick
Violation: Janet Lynn Derrick accepted more than $70,000 in monetary gifts from an elderly firm customer in violation of her firms’ policies, in violation of FINRA Rule 2010… Read More

Penalties: $5,000.00
Respondent: Gelband & Co., Inc.
Violation: Gelband failed to conduct an independent test of its Anti-Money Laundering (“AML”) Compliance Program for calendar years 2014, 2015, 2016 and 2017, in violation of FINRA Rules 3310(c) and 2010… Read More

Penalties: $225,554.00
Respondent: Buckman, Buckman & Reid, Inc; Harry John (“Chip”) Buckman, Jr.,
Violation: BBR failed to establish and maintain a supervisory system, and failed to establish, maintain, and enforce written supervisory procedures (“WSPs”), that were reasonably designed to achieve compliance with FINRA’s suitability rule. In addition, BBR and Buckman—who was the Firm’s designated supervisory principal responsible for conducting suitability reviews failed to reasonably supervise two former registered representatives, GK and RI, who, while registered through BBR, recommended excessive and unsuitable trades in multiple customer accounts… Read More

SEC

23 Enforcement Documents

$1,134,323.90 in Fines

Penalties: N/A
Respondent: David M. Loflin
Violation: Loflin engaged in a fraudulent pump-and-dump scheme that allowed him to quickly profit from the sale of Greenway shares without registering the sale of those shares as required by the federal securities laws. Loflin, violated, and unless restrained and enjoined will continue to violate, Section 10(b) of the Exchange Act, 15 U.S.C. § 78j(b), and Rules10b-5(a) and 10b-5(c) thereunder, 17 C.F.R. §§ 240.10b-5(a) and 240.10b-5(c)… Read More

Penalties: $48,461.90
Respondent: Dov Zaidman, CPA & ZBS Group LLP
Violation: Zaidman willfully violated Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Section 10A(a)(2) of the Exchange Act, and willfully aided and abetted and caused ZBS Group’s violations of Rule 2-02(b)(1) and Rule 2-06 of Regulation S-X… Read More

Penalties: N/A
Respondent: David M. Martin, CPA
Violation: Martin, while serving as the Chief Financial Officer of Life Partners Holdings, Inc. (“LPHI”), played a role in LPHI’s misleading of shareholders by failing to disclose that the company was systematically and materially underestimating the life expectancy estimates it used to price certain transactions… Read More

Penalties: N/A
Respondent: Charles Myrick Winstead
Violation: A judgment of conviction was entered against Winstead based on his plea of guilty to one count of embezzlement in violation of Section 97-23-19(d) of the Mississippi Code of 1972, before the Circuit Court of Madison County, Mississippi, in the State of Mississippi v. Charles Myrick Winstead, Cause No. 2017-0386… Read More

Penalties: N/A
Respondent: Eric D. Lyons; Sunchrony Capital GP, LLC; Synchrony Group, LLC, and Synchrony Capital Group; Synchrony Global Macro, LP.
Violation: Lyons and the Synchrony Adviser Entities, while acting as an investment adviser, directly or indirectly, by use of the mails or means and instrumentalities of interstate commerce, knowingly, willfully or recklessly: (a) employed and are employing devices, schemes, or artifices to defraud clients or prospective clients; and (b) engaged and are engaging in transactions, practices, and courses of businesses which operated and operate as a fraud or deceit upon clients or prospective clients. Lyons and the Synchrony Adviser Entities violated, and unless enjoined will continue to violate, Sections 206(1) and 206(2) of the Advisers Act [15 U.S.C. §§80b-6(1)–(2)]… Read More

Penalties: $40,000.00
Respondent: Charter Capital Management, LLC, and Steven Morris Bruce
Violation: CCM and Bruce negligently breached their fiduciary duties to the funds in violation of Section 206(2) of the Advisers Act by failing to disclose that Bruce was a creditor of the Norwegian individual and his company and the resulting conflict of interest, i.e., that Bruce had an incentive for the funds to invest so that it would provide money that could be used to repay Bruce personally. CCM and Bruce also negligently violated Section 206(4) of the Advisers Act and Rule 206(4)-8 thereunder through misleading statements to fund investors about the level of due diligence performed on the investment and the “buy-in” of CCM’s outside professionals… Read More

Penalties: $150,994.00
Respondent: Michael F. Cronin, CPA
Violation: Cronin never requested or received consent from the PCAOB or the Commission to become or remain associated with any issuer in an accountancy or financial management capacity… Read More

Penalties: N/A
Respondent: Hall Tees, Inc.
Violation: The time for filing a petition for review of the initial decision in this proceeding has expired. No such petition has been filed by Hall Tees, Inc., Hosokawa Micron International, Inc., James River Coal Company, Napa Sonoma Group, Inc. (f/k/a Andes 1, Inc.), or Self Change Corporation and the Commission has not chosen to review the decision on its own initiative… Read More

Penalties: N/A
Respondent: Universal BioEnergy, Inc.
Violation: The time for filing a petition for review of the initial decision in this proceeding has expired. No such petition has been filed by Universal Bioenergy, Inc., and the Commission has not chosen to review the decision on its own initiative… Read More

Penalties: N/A
Respondent: Kollagenx Corp., Microlin Bio, Inc., Vaccinogen, Inc., and Virtus Oil and Gas Corp.
Violation: The time for filing a petition for review of the initial decision in this proceeding has expired. No such petition has been filed by KollagenX Corp., Microlin Bio, Inc., Vaccinogen, Inc., or Virtus Oil and Gas Corp… Read More

Penalties: $500,000.00
Respondent: Deutsche Bank Trust Company Americas
Violation: DBTCA failed to also disclose that the Research Group only evaluated those Hedge Funds that would agree to share their management fees with DBTCA. This omission rendered the disclosures concerning its due diligence materially misleading. As a result, DBTCA violated Section 17(a)(2) of the Securities Act… Read More

Penalties: N/A
Respondent: Celadon Group, Inc.
Violation: Celadon, directly or indirectly, acting with scienter, by the use of the means or instrumentalities of interstate commerce, or of the mails, or of any facility of a national securities exchange, in connection with the purchase or sale of a security: (a) employed devices, schemes or artifices to defraud; (b) made untrue statements of material fact or omitted to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; and (c) engaged in acts, practices, or courses of business which operated or would operate as a fraud or deceit upon another person. Celadon violated Section 10(b) of the Exchange Act [15 U.S.C. §78j(b)] and Rule 10b-5 thereunder [17 C.F.R. 240.10b-5]… Read More

Penalties: $177,000.00
Respondent: Zachary S. Berkey, et al.
Violation: Berkey conducted in-and-out trading that was almost certain to lose money for customers while yielding commissions for himself… Read More

Penalties: N/A
Respondent: Christopher D. Dougherty, et al,
Violation: Dougherty provided investment advice to school district employees, hospital employees, veterans, and neighbors, most of whom were unsophisticated investors and trusted Dougherty completely… Read More

Penalties: N/A
Respondent: Falconridge Oil Technologies Corp., Flasr Inc., and Fonon Corp.
Violation: The time for filing a petition for review of the initial decision in this proceeding has expired. No such petition has been filed by Falconridge Oil Technologies Corp., FLASR, Inc., or Fonon Corp… Read More

Penalties: N/A
Respondent: Go EZ Corporation, Green St. Energy Inc., Hyperview LTD., and IMOGO Mobile Technologies Corp.
Violation: The time for filing a petition for review of the initial decision in this proceeding has expired. No such petition has been filed by GO EZ Corporation, Green St. Energy, Inc., Hyperview Ltd., or Imogo Mobile Technologies Corp… Read More

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