Financial Enforcement Actions | Week of Apr 28 to May 03

Financial Enforcement Actions | Week of Apr 28 to May 03

Financial Enforcement Actions | Week of Apr 28 to May 03

Penalties: $92,000.00
Respondent: Repair All
Violation: The defendants used ads designed to look like pop-up security alerts and pretended to be associated with major technology companies to trick people into giving them remote access to their computers. After gaining access, the defendants allegedly ran sham diagnostic tests and told people that their computers were infected with viruses or had been hacked. They then urged people to buy unnecessary tech repair services costing hundreds of dollars… Read More

Penalties: £409,300.00
Respondent: Linear Investments Limited
Violation: The volume of trades routed through Linear to its brokers was at a level which meant that it was not capable of being adequately monitored by the manual only process in place at Linear. Linear’s reliance on post trade surveillance undertaken by underlying brokers to discharge its regulatory obligations was incorrect… Read More

Penalties: N/A
Respondent: Karel Nallet
Violation: Mr. Nallet is failing to satisfy the suitability Threshold Condition, in that the Authority is not satisfied that Mr. Nallet is a fit and proper person having regard to all the circumstances, including whether Mr. Nallet 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: Collect Plus Limited
Violation: CPL is failing to satisfy the suitability Threshold Condition, in that the Authority is not satisfied that CPL is a fit and proper person having regard to all the circumstances, including whether CPL 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: Philips Legal Solutions Limited
Violation: PLSL is failing to satisfy the suitability Threshold Condition, in that the Authority is not satisfied that PLSL is a fit and proper person having regard to all the circumstances, including whether PLSL 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: A G Taggart & Co Limited
Violation: AGTCL is failing to satisfy the suitability Threshold Condition, in that the Authority is not satisfied that AGTCL is a fit and proper person having regard to all the circumstances, including whether AGTCL 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: Bicycle Doctor (South Wales) Ltd
Violation: BDL is failing to satisfy the suitability Threshold Condition, in that the Authority is not satisfied that BDL is a fit and proper person having regard to all the circumstances, including whether BDL managed its business in such a way as to ensure that its affairs were conducted in a sound and prudent manner… Read More

FINRA

8 Enforcement Documents

$834,961.33 in Fines

Penalties: N/A
Respondent: Michael John Ahearn
Violation: Respondent Michael John Ahearn provided false information in a written response to a FINRA Rule 8210 request and false testimony during an on-the-record-interview, in violation of FINRA Rules 8210 and 2010… Read More

Penalties: N/A
Respondent: Kajo Movsesian
Violation: On November 21, 2018, FINRA staff, pursuant to FINRA Rule 8210, sent a request to Movsesian seeking written information and documents concerning the disclosures made in the Form US. In response to that request and as stated by his counsel to FINRA staff in a December 19, 2018 letter and a February 8, 2019 phone call, and by this agreement, Movsesian acknowledges that he received FINRA’s request and will not produce the information and documents requested. By refusing to produce the information and documents as requested pursuant to FINRA Rule 8210, Movsesian violated FINRA Rules 8210 and 2010… Read More

Penalties: N/A
Respondent: Anselmo Contreras Jr.,
Violation: Contreras induced a Firm customer to give him a $10,000 check to invest in a real estate venture. Contreras deposited the check into his personal bank account, and then used the customer’s money for his own personal use without the customer’s knowledge or consent. Thus, Contreras misused and converted customer funds in violation of FINRA Rules 2150(a) and 2010… Read More

Penalties: $5,000.00
Respondent: Jamie Bennett
Violation: While assigned responsibility for Silber Bennett’s review and retention of email, CCO Bennett failed to ensure that the firm captured, retained and reviewed emails related to firm business, specifically: (1) emails sent or received by a Silber Bennett branch office from October 2013 through June 2015, and (ii) certain business-related emails sent or received by Bennett through his outside email address from January 2014 through November 2015… Read More

Penalties: $7,500.00
Respondent: Gerard N. Whelan
Violation: Whelan executed 132 securities transactions in MC’s brokerage account, primarily in blue chip or large-cap stocks in the technology, energy, and financial sectors. In that time, MC’s account increased in value from $9,339 to $12,476.40. Whelan did not receive any selling compensation in connection with the transactions he executed in MC’s account. Whelan, however, did not provide written notice to Ameriprise prior to participating in these private securities transactions, and he did not obtain written approval from the Firm. Whelan violated FINRA Rules 3280 and 2010… Read More

Penalties: $772,461.33
Respondent: AXA Advisors, LLC
Violation: AXA distributed documents that negligently misrepresented the credit quality of certain bond funds offered within group annuity contracts for 401(k) retirement plans. Specifically, certain enrollment forms, investment options attachments, and other documents, created by its affiliated life insurance company, which AXA distributed to retirement plan sponsors, misrepresented that certain bond funds were “investment-grade” when, in fact, they were not. Based on the foregoing, AXA violated FINRA Rule 2010… Read More

Penalties: $50,000.00
Respondent: Midtown Partners & Co.. LLC
Violation: Midtown failed to enforce the prohibitions in its written superb is or) procedures against trading of securities on the firm’s watch list or restricted list. In addition, it failed to designate anyone to supervise its principal officer fnm January 2014 through December 2016. Ry virtue of this conduct Midtown violated NASD Rules 3010(a) and (h), and FINRA Rules 31100) and (b) and FINRA Rule 7010… Read More

Penalties: N/A
Respondent: Stuart S. Sutton
Violation: Sutton refused to provide information requested by FINRA staff pursuant to FINRA Rule 8210. Sutton thereby violated FINRA Rules 8210 and 2010… Read More

CFPB

2 Enforcement Document

$3,900,000.00 in Fines

Penalties: $3,900,000.00
Respondent: Conduent Education Services, LLC
Violation: CES engaged in unfair practices that violated the Consumer Financial Protection Act of 2010 by failing to adjust in a timely manner principal balances of student loans made under the Federal Family Education Loan Program… Read More

Penalties: N/A
Respondent: PGX Holdings, Inc.
Violation: Defendants violated the Telemarketing Sales Rule (TSR) by requesting and receiving payment of prohibited upfront fees for their credit repair services… Read More

SEC

12 Enforcement Documents

$21,818,503.91 in Fines

Penalties: N/A
Respondent: One or More Unknown Traders in the Securities of Anadarko Petroleum Corp.
Violation: The traders, who are currently unknown, allegedly used foreign brokerage accounts in the United Kingdom and Cyprus to purchase out-of-the-money call options through U.S.-based brokerage firms and on U.S.-based exchanges in the days leading up to the announcement… Read More

Penalties: N/A
Respondent: James Siniscalchi
Violation: James Siniscalchi, Chief Compliance Officer of a company claimed to have special access to profitable and highly sought-after event tickets, knowingly misused investor money to benefit himself and his extended family… Read More

Penalties: N/A
Respondent: OMINTO, INC.
Violation: Ominto has failed to comply with Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder, while its common stock was registered with the Commission in that it has not filed an annual report on Form 10-K since the period ended September 30, 2016 or quarterly reports on Form 10-Q since the period ended June 30, 2017… Read More

Penalties: $21,675,000.00
Respondent: Taberna Capital Management, LLC; Michael Fralin and Raphael Licht
Violation: In connection with restructuring transactions undertaken between the Taberna collateralized debt obligation clients (the “Taberna CDOs”) and the issuers of the underlying obligation in Taberna CDOs’ portfolios, Taberna retained certain fees (“Exchange Fees”) that should have been paid to the Taberna CDOs. The Commission further determined that the retention of Exchange Fees created actual and potential conflicts of interest that Taberna failed to disclose to its clients. Fralin and Licht, former officers of Taberna and its parent company, respectively, participated in the misconduct… Read More

Penalties: $143,503.91
Respondent: Thomas Gutierrez
Violation: Gutierrez’s statements on the earnings call regarding GT’s expectation that it would receive from Apple the fourth prepayment by the end of October 2014, Gutierrez violated Sections 17(a)(2) and 17(a)(3) of the Securities Act, which makes it unlawful to obtain money or property through misstatements or omissions about material facts and proscribes any transaction or course of business that operates or would operate as a fraud or deceit upon a purchaser of securities… Read More

Penalties: N/A
Respondent: GT Advanced Technologies Inc.
Violation: Thomas Gutierrez (“Gutierrez”), and other officials were aware that GT failed to meet the required quantity, quality, and delivery standards, including a “fourth milestone” in the debt agreement… Read More

Penalties: N/A
Respondent: Play La Inc. and Titan Trading Analytics, Inc.
Violation: Accordingly, notice is hereby given, pursuant to Rule 360(d) of the Commission’s Rules of Practice,1 that the initial decision of the administrative law judge has become the final decision of the Commission with respect to Play La Inc. and Titan Trading Analytics, Inc… Read More

Penalties: N/A
Respondent: Paul Peter Gierten
Violation: Gierten misappropriated a total of $39,000 from one of his clients, who was an elderly military veteran. Gierten did so, by first soliciting his client to purportedly invest in an organization that was designed to benefit low-income veterans in return for promissory notes bearing six percent interest. In fact, the organization did not raise capital through investors and Gierten was not authorized to raise money on its behalf… 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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