Financial Enforcement Actions | Week of April 25 to May 01

Enforcement Report Apr 25 - May 01 feat

Enforcement Report Apr 25 - May 01

UK-FCA

1 Enforcement Document

£0.00 in Fines

Penalties: N/A
Respondent: Paul Milsom
Violation: Mr Milsom pleaded guilty on 16 January 2013, at the City of Westminster Magistrates Court, to Insider Dealing, contrary to Section 52(2)(b) of the Criminal Justice Act 1993... Read More

FTC

2 Enforcement Documents

$0.00 in Fines

Penalties: N/A
Respondent: Marc Ching, Individually, and also d/b/a Whole Leaf Organics.
Violation: The Federal Trade Commission, having reason to believe that Marc Ching, also doing business as Whole Leaf Organics, (“Respondent”), has violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission that this proceeding is in the public interest, alleges: 1. Respondent Marc Ching, also doing business as Whole Leaf Organics, has his principal office or place of business at 14900 Magnolia Blvd, #57347, Sherman Oaks, California 91413. 2. Respondent has manufactured, advertised, labeled, offered for sale, sold, and distributed products to consumers, including Thrive, CBD-EX, CBD-RX, and CBD-Max. Thrive, CBD-EX, CBD-RX, and CBD-Max are “Drugs” within the meaning of Sections 12 and 15 of the Federal Trade Commission Act. 3. The acts and practices of Respondent alleged in this complaint have been in or affecting commerce, as “commerce” is defined in Section 4 of the Federal Trade Commission Act... Read More

FINRA

2 Enforcement Documents

$0.00 in Fines

Penalties: N/A
Respondent: Bryan E. Benson
Violation: Benson refused to provide information and documents that were requested pursuant to FINRA Rule 8210, in violation of FINRA Rules 8210 and 2010... Read More

Penalties: N/A
Respondent: Charles L. Doraine
Violation: Doraine violated FINRA Rules 8210 and 2010 by refusing to provide testimony requested pursuant to FINRA Rule 8210, in connection with FINRA's investigation of Doraine's suspected unsuitable recommendations of (1) short-term trading in mutual fund A shares; (2) short-term trading of Puerto Rican municipal bonds; and (3) overconcentration of customer accounts in Puerto Rican municipal bonds... Read More

SEC

22 Enforcement Documents

$503,228.00 in Fines

Penalties: N/A
Respondent: Anthony C. Ciccone
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 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) against Anthony C. Ciccone (“Anthony Ciccone” or “Respondent”)... Read More

Penalties: N/A
Respondent: William Alfred Batchelor and John Michael Zukoski
Violation: By reason of the foregoing, Batchelor and Zukoski directly or indirectly, in the offer or sale of securities, by use of the means or instruments of transportation or communication in interstate commerce or by use of the mails, engaged in transactions, practices, or courses of business which operated or would operate as a fraud or deceit upon the purchasers.By reason of the foregoing, Batchelor and Zukoski directly or indirectly, violated and unless enjoined will continue to violate, Section 17(a)(3) of the Securities Act [15 U.S.C. § 77q(a)(3)]... Read More

Penalties: N/A
Respondent: Donald J. Kellen
Violation: According to the SEC's complaint, from about May 2012 through September 2015, Kellen profited at his clients' expense by cherry-picking profitable trades using an omnibus account, which is intended to facilitate purchases of securities for multiple client accounts. Kellen allegedly delayed allocating the securities from the omnibus account to individual client accounts until after he had observed the securities' price movement over the course the trading day. Kellen allegedly disproportionately allocated profitable trades to his personal accounts and unprofitable trades to his clients' accounts. According to the complaint, this alleged misuse of his omnibus account enabled him to engage in riskless day-trading... Read More

Penalties: N/A
Respondent: Brian A. Oliver
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 Brian A. Oliver (“Oliver” or “Respondent”)... Read More

Penalties: N/A
Respondent: Penn West Petroleum Ltd., d/b/a Obsidian Energy Ltd., Todd H. Takeyasu, Jeffery A. Curran, and Waldemar Grab
Violation: The SEC's complaint alleges that from 2012 through 2014, Penn West Petroleum, Ltd., now doing business as Obsidian Energy Ltd., improperly classified certain operating expenses as capital expenses in order to lower a key publicly reported metric concerning the cost of oil extraction and processing. As alleged, this fraudulent practice was not disclosed to the company's external auditor and caused the company's financial statements to be materially inaccurate. In September 2014, the company publicly reported that it would restate its financial statements from 2012 to the first quarter of 2014 and that its historical financial statements and related audit reports could no longer be relied upon. The company and Waldemar Grab, a former operations controller at Penn West, previously settled the Commission's fraud claims... Read More

Penalties: N/A
Respondent: Praxsyn Corporation and Frank J. Brady
Violation: The SEC's complaint, filed in federal court in the Southern District of Florida, charges Praxsyn and Brady with violating the antifraud provisions of Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder, and seeks permanent injunctive relief and civil penalties. The SEC also seeks an officer and director bar against Brady. The SEC's investigation, which is ongoing, has been conducted by the Microcap Fraud Task Force and supervised by Elisha L. Frank and Glenn S. Gordon. Robert K. Levenson is leading the SEC's litigation under the supervision of Andrew O. Schiff. The SEC appreciates the assistance of the Financial Industry Regulatory Authority (FINRA)... Read More

Penalties: N/A
Respondent: Elliot R. Berman, CPA
Violation: Berman willfully violated Section 10A(j) of the Securities Exchange Act of 1934, willfully aided and abetted and caused violations of Rule 2-02 of Regulation S-X, caused violations of Section 13(a) of the Exchange Act and Rule 13a-1 thereunder, and engaged in improper professional conduct. The Commission’s findings related to Berman’s putative appointment of an unqualified person as lead partner of an audit engagement while Berman continued to provide the services of a lead partner for the same engagement for more than five consecutive years... Read More

Penalties: $503,228.00
Respondent: Semper Capital Management, L.P.
Violation: Semper willfully violated Section 206(4) of the Advisers Act and Rule 206(4)-8 thereunder, which make it unlawful for any investment adviser to a pooled investment vehicle to make any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which they were made, not misleading, to any investor or prospective investor in the pooled investment vehicle, or otherwise engage in any act, practice, or course of business that is fraudulent, deceptive, or manipulative with respect to any investor or prospective investor in the pooled investment vehicle... Read More

Penalties: N/A
Respondent: William M. Aisenberg, CPA
Violation: The Securities and Exchange Commission (“Commission”) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted against William M. Aisenberg (“Respondent” or “Aisenberg”) pursuant to Rule 102(e)(3)(i) of the Commission’s Rules of Practice... Read More

Penalties: N/A
Respondent: Lee C. Schlesinger
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 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) against Lee C. Schlesinger (“Schlesinger” or “Respondent”)... Read More

Penalties: N/A
Respondent: American Bondholders Foundation, LLC and Jonna Bianco
Violation: As a result of the conduct described above, Respondents violated Sections 5(a) and 5(c) of the Securities Act, which prohibit the direct or indirect offer and sale of securities through the mails or interstate commerce unless a registration statement has been filed or is in effect... Read More

Penalties: N/A
Respondent: Everest Capital LLC and Marko Dimitrijevic,
Violation: "Everest and Dimitrijevic willfully violated Section 206(4) of the Advisers Act and Rule 206(4)-8 thereunder, which make it unlawful for any investment adviser to a pooled investment vehicle to “make any untrue statement of a material fact or to omit to state a material fact necessary to make the statements made, in the light of the circumstances under which they were made, not misleading, to any investor or prospective investor in the pooled investment vehicle.” Steadman, 967 F.2d at 647.
A violation of Section 206(4) may rest on a finding of simple negligence; scienter is not required... Read More

Penalties: N/A
Respondent: Jerry E. Orellana
Violation: MSRB Rule G-17 provides in relevant part that, in the conduct of its municipal securities business, every broker-dealer shall deal fairly with all persons and shall not engage in any deceptive, dishonest, or unfair practice.2 Negligence is sufficient to establish a violation of MSRB Rule G-17.Orellana willfully violated MSRB Rule G-17 by (a) submitting orders to members of the underwriting syndicate as eligible retail orders, when he should have known those orders did not qualify for retail priority, and (b) supplying inaccurate zip codes with some of those orders... Read More

Penalties: N/A
Respondent: Leonardo Cornide and Jorge Falcon
Violation: On January 24, 2020, the Commission issued an Amended Order Instituting Cease-andDesist Proceedings Pursuant to Section 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing a Cease-and-Desist Order (the “Amended Order”)1 that amended the order issued on September 25, 2019,2 which simultaneously instituted and settled a cease-anddesist proceeding against Leonardo Cornide (“Cornide”) and Jorge Falcon (“Falcon”) (together “Respondents”). These proceedings arise out of Respondents’ failure to disclose conflicts of interest while acting as investment advisers to Premier Assurance Group, SPC Ltd. (“PSPC”), a Cayman Islands-registered insurance company... Read More

Penalties: N/A
Respondent: Monsoon Capital, LLC and Gautam Prakash
Violation: Respondents willfully violated Section 206(4) of the Advisers Act and Rule 206(4)-8 thereunder, which makes it unlawful for any investment adviser to a pooled investment vehicle, directly or indirectly, to make any untrue statement of a material fact or to omit to state a material fact necessary to make the statements made, in the light of the circumstances under which they were made, not misleading, to any investor or prospective investor in the pooled investment vehicle; or to otherwise engage in any act, practice, or course of business that is fraudulent, deceptive, or manipulative with respect to any investor or prospective investor in the pooled investment vehicle... Read More

Penalties: N/A
Respondent: Portfolio Advisors Alliance, Inc.
Violation: "The Commission’s complaint alleged that, from at least March 2011 to December 2013, PAA, through its owner Allen, sold AGF II securities in a private placement offering using offering documents that falsely stated that AGF II’s financial statements had previously been audited and would continue to be audited at the end of each fiscal year. The Commission’s complaint alleged that PAA, through Allen, learned by at least May or June 2012 that the offering documents were false but continued to send the false documents to investors for more than a year thereafter to solicit sales of AGF II units, without informing any investors that no audits had been performed or that the representation in the offering documents regarding an audit was false. On May 15, 2019, a jury in the above-mentioned civil action (Securities and Exchange Commission v. American Growth Funding II, LLC, et al., Civil Action Number 16- CV-828 (S.D.N.Y.)), found PAA liable for violating Section 17(a) of the Securities Act of 1933 (“Securities Act”) and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder... Read More

Penalties: N/A
Respondent: Wei Duan
Violation: On September 11, 2014, the Commission issued an Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order (the “Order”) against Wilmington Trust Corporation (“WTC” or “the Bank”), a bank holding company based in Wilmington, Delaware. According to the Order, the administrative proceeding arose out of false and misleading disclosures by WTC concerning its accruing loans past due 90 days or more over multiple quarters during 2009 and 2010, its nonaccruing loans in the third quarter of 2009, and its reserves for loan losses in the third and fourth quarters of 2009... Read More

Penalties: N/A
Respondent: Wilmington Trust Corporation
Violation: On September 11, 2014, the Commission issued an Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order (the “Order”)1 against Wilmington Trust Corporation (“WTC” or “the Bank”), a bank holding company based in Wilmington, Delaware. According to the Order, the administrative proceeding arose out of false and misleading disclosures by WTC concerning its accruing loans past due 90 days or more over multiple quarters during 2009 and 2010, its nonaccruing loans in the third quarter of 2009, and its reserves for loan losses in the third and fourth quarters of 2009... Read More

Penalties: N/A
Respondent: Todd H. Takeyasu, CA
Violation: The Securities and Exchange Commission (“Commission”) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted against Todd H. Takeyasu (“Respondent” or “Takeyasu”) pursuant to Rule 102(e)(3)(i) of the Commission’s Rules of Practice... Read More

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