Financial Enforcement Actions | Week of August 03 to August 09

Financial-Enforcement-Actions-Week-of-August-03-to-August-09.

FTC

5 Enforcement Documents

$0.00 in Fines

Penalties: N/A
Respondent: Boston Scientific and BTG
Violation: Boston Scientific’s proposed $4.2 billion acquisition of medical equipment and pharmaceutical supplier BTG plc would violate federal antitrust law… Read More

Penalties: N/A
Respondent: “RAG-STIFTUNG, EVONIK INDUSTRIES AG, EVONIK CORPORATION, EVONIK INTERNATIONAL HOLDING B.V, ONE EQUITY PARTNERS SECONDARY
FUND, L.P. and ONE EQUITY PARTNERS V, L.P., LEXINGTON CAPITAL PARTNERS VII (AIV I), L.P., PEROXYCHEM COOPERATIEF U.A. ”
Violation: “The Acquisition would result in concentration well above the amount necessary to establish a presumption of competitive harm”… Read More

UK-FCA

1 Enforcement Document

£0.00 in Fines

Penalties: N/A
Respondent: Neil Williams-Denton
Violation: Authority considers that Mr Williams-Denton should be prohibited from performing any function in relation to regulated activities carried on by an authorised person, an exempt person or by an exempt professional firm. Accordingly, it is making this prohibition order… Read More

FINRA

12 Enforcement Documents

$2,057,430.00 in Fines

Penalties: N/A
Respondent: Lisa Acca
Violation: Acca failed to produce certain required documents and information and failed to appear and provide testimony requested pursuant to FINRA Rule 8210, in violation of FINRA Rules 8210 and 2010… Read More

Penalties: $5,000.00
Respondent: Steve Baptist
Violation: Baptist engaged in unauthorized trading by placing six trades in the accounts of two customers who were deceased at the time of the trades. By this conduct, Baptist violated FINRA Rule 2010. Additionally, in 2017, Baptist exercised discretion without written authorization in the accounts of five customers, in violation of NASD Rule 2510 and FINRA Rule 2010… Read More

Penalties: N/A
Respondent: Karen Paek
Violation: Between November 2016 and December 2017, Paek created, signed, and submitted six fictitious variable annuity (“VA”) applications, along with fictitious supporting documents, to meet her minimum production requirements at Pruco. As a result of this conduct, Paek violated FINRA Rules 2010 and 4511… Read More

Penalties: $154,930.00
Respondent: Richard J. Coleman
Violation: Between October 2015 and February 2017 (the “Relevant Period”), Coleman excessively traded four customers’ accounts in violation of FINRA Rules 2111 and 2010. In addition, Coleman marked sale orders as unsolicited when, in fact, they were solicited, in violation of FINRA Rules 4511 and 2010… Read More

Penalties: $25,000.00
Respondent: Ken Kavanagh
Violation: By engaging in outside business activities without providing prior written notice to Morgan Stanley, Kavanagh violated NASD Rules 3030 (for conduct occurring before December 15, 2010) and 2110 (for conduct occurring before December 15, 2008) and FINRA Rules 3270 (for conduct occurring on or after December 15, 2010) and 2010 (for conduct occurring on or after December 15, 2008)… Read More

Penalties: N/A
Respondent: Alpine Securities Corporation
Violation: FINRA Rule 9840(c), that this Order shall remain effective and enforceable until the issuance of a decision under Rule 9268 or Rule 9269, or until a settlement offer is accepted pursuant to Rule 9270. This Order shall have the same force and effect as any order issued pursuant to FINRA Rule 9840, and Respondent hereby waives the right to challenge or contest the validity of this Order, or to appeal from this Order, in any forum… Read More

Penalties: $25,000.00
Respondent: Parthos S. Ghosh
Violation: Ghosh violated FINRA Rule 2010, which provides that “[a] member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade.” This rule also applies to persons associated with a member firm. A violation of another FINRA rule constitutes a violation of FINRA Rule 2010. And, specifically, “[a] violation of FINRA Rule 3270 constitutes a violation of FINRA Rule 2010… Read More

Penalties: $5,000.00
Respondent: Jollene J. Austin
Violation: In October 2010 and July 2011, while associated with a FINRA member, Austin borrowed a total of $665,000 from a firm customer without obtaining prior written approvals to engage in the transactions from her firm. As a result, Austin violated FINRA Rules 3240 and 2010… Read More

Penalties: $25,000.00
Respondent: Ken Kavanagh
Violation: Kavanagh also falsely attested on six Firm questionnaires that he was not involved with any outside business activities. By engaging in outside business activities without providing prior written notice to Morgan Stanley, Kavanagh violated NASD Rules 3030 (for conduct occurring before December 15, 2010) and 2110 (for conduct occurring before December 15, 2008) and FINRA Rules 3270 (for conduct occurring on or after December 15, 2010) and 2010 (for conduct occurring on or after December 15, 2008)… Read More

Penalties: N/A
Respondent: Eldridge F. Parks
Violation: On June 10, 2019, Parks failed to appear for on-the-record testimony in response to FINRA’s Rule 8210 request. In addition, Parks refused to appear for on-record testimony that FINRA scheduled for June 25, 2019, pursuant to FINRA Rule 8210. As a result, Parks violates FINRA Rules 8210 and 2010… Read More

Penalties: $10,000.00
Respondent: Thomas Raymond Williams
Violation: “On or about April 22, 2016, Williams omitted material information from an email communication to a customer regarding the status of funds held in escrow in connection with the customer’s investment in a private placement of notes for which Ross Sinclaire had been the placement agent. This omission caused the email to be misleading, and Williams thereby violated F1NRA Rules 2210(d)(1)(A) and 2010… Read More

Penalties: $250,000.00
Respondent: William Jmaes Potter
Violation: “Respondent William James Potter converted a portion of funds entrusted to him as a third party to a business agreement between two other parties. The second cause of action alleges that Potter acted unethically and misused another portion of the entrusted funds when one of the parties failed to perform as the agreement required… Read More

Penalties: $5,000.00
Respondent: Mengxuan Zhang
Violation: Zhang falsified customer signature pages on three firm account forms for three different customers between March 2017 and July 2018. Specifically, Zhang reused customer signature pages without customers’ express permission, and changed the dates on the forms to make it appear as if the customers had reexecuted the forms. Zhang’s actions were intended to expedite the processing of transactions that her customers had authorized. Through this conduct, Zhang violated FINRA Rule 2010… Read More

SEC

34 Enforcement Documents

$116,525,067.00 in Fines

Penalties: N/A
Respondent: Tanmaya Kabra et al.,
Violation: Kabra diverted them almost immediately to his own use-in one instance, to pay for a boat Kabra had agreed to purchase, and, in other instances, to pay back earlier investors in Ponzi-like distributions. The SEC alleges that Kabra repeatedly lied to investors to keep them from discovering his fraud… Read More

Penalties: $100,300,000.00
Respondent: Morgan Asset Management Inc., Morgan Keegan & Company, Inc., James C. Kelsoe, Jr., and Joseph Thompson Weller, CPA
Violation: Morgan Keegan & Company, Inc., James C. Kelsoe, Jr., and Joseph Thompson Weller, CPA, involving Respondents’ fraudulent valuation of certain subprime mortgage-backed securities in the portfolios of five (5) funds managed by Respondents… Read More

Penalties: N/A
Respondent: Dennis Gibb and Sweetwater Investments, Inc.
Violation: Gibb voluntarily undertook to liquidate the securities in Income Flood’s brokerage account and cause Income Flood to gift all assets in the liquidated account to the Disgorgement Fund pursuant to Section 308(b) of the Sarbanes-Oxley Act of 2002. Gibbs has completed this undertaking, sending approximately $1.77 million to the Disgorgement Fund… Read More

Penalties: N/A
Respondent: SCIO Diamond Technbology Corp
Violation: Scio 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 July 14, 2016 for the period ended March 31, 2016 or periodic or quarterly reports on Form 10-Q for any fiscal period subsequent to its fiscal quarter ending December 31, 2016… Read More

Penalties: 2,916.00
Respondent: Nandu Thondavadi
Violation: Thondavadi has been convicted of a felony within the meaning of Rule 102(e)(2) of the Commission’s Rules of Practice. Accordingly, it is ORDERED, that Nandu Thondavadi is forthwith suspended from appearing or practicing before the Commission pursuant to Rule 102(e)(2) of the Commission’s Rules of Practice… Read More

Penalties: N/A
Respondent: Gerard F. Hug and Kurt W. Streams
Violation: The SEC’s complaint alleges that Hug and Streams 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 Rule 10b-5 thereunder; the internal controls and books and records provisions of Section 13(b) (5) of the Exchange Act and Rule 13b2-1 thereunder; the Sarbanes-Oxley certification provision of Exchange Rule 13a-14; and the lying to the auditors provision of Exchange Act Rule 13b2-2… Read More

Penalties: N/A
Respondent: SITO Mobile, Ltd
Violation: SITO violated Section 14(a) of the Exchange Act and Rules 14a-3 and 14a-9 thereunder by soliciting proxies in connection with its 2015 and 2016 annual meetings which materially misrepresented and understated the compensation paid to Hug and Streams by failing to report their personal benefits… Read More

Penalties: N/A
Respondent: Dutch Gold Resources, Inc. and Paracap Corporation
Violation: “Respondents are delinquent in their periodic filings with the Commission, have repeatedly failed to meet their obligations to file timely periodic reports, and failed to heed delinquency letters sent to them by the Division of Corporation Finance requesting compliance with their periodic filing obligations or, through their failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letters. Respondents failed to comply with Exchange Act
Section 13(a) and Rules 13a-1 and 13a-13 thereunder… Read More

Penalties: N/A
Respondent: American Rare Earths and Materials, Corp., PureSafe Water Systems, Inc., and SpendSmart Networks, Inc.,
Violation: Respondents are delinquent in their periodic filings with the Commission, have repeatedly failed to meet their obligations to file timely periodic reports, and failed to heed delinquency letters sent to them by the Division of Corporation Finance requesting compliance with their periodic filing obligations or, through their failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letters. Respondents failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder… Read More

Penalties: $40,473.00
Respondent: Imran Husain, et al
Violation: Jaclin has consented to the entry of a judgment permanently enjoining him from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 (“Securities Act”) and Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder and the registration provisions of Sections 5(a) and 5(c) of the Securities Act, and aiding and abetting violations of Section 15(d) of the Exchange Act and Rules 12b-20, 15d-1, and 15d-13 thereunder… Read More

Penalties: N/A
Respondent: Gregg Evan Jaclin, Esq.
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 Gregg Evan Jaclin (“Respondent” or “Jaclin”) pursuant to Rule 102(e)(3)(i) of the Commission’s Rules of Practice… Read More

Penalties: N/A
Respondent: Tanmaya Kabra et al and Launchbyte.Io, LLC
Violation: Defendants violated , and unless restrained and enjoined wil continue to violate, Section 17(a) of the Securities Act of 1933 and Sec 10(b) of the Securities Exchange Act of 1934 and Rule 10-b thereunder… Read More

Penalties: N/A
Respondent: Aramex International Limited
Violation: Respondents are delinquent in their periodic filings with the Commission, have repeatedly failed to meet their obligations to file timely periodic reports, and failed to heed delinquency letters sent to them by the Division of Corporation Finance requesting compliance with their periodic filing obligations or, through their failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letters. Respondents failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder… Read More

Penalties: N/A
Respondent: Aroga Holding Corp., Global Sources Limited, and United States Properties, Inc
Violation: Respondents are delinquent in their periodic filings with the Commission, have repeatedly failed to meet their obligations to file timely periodic reports, and failed to heed delinquency letters sent to them by the Division of Corporation Finance requesting compliance with their periodic filing obligations or, through their failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letters. Respondents failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder… Read More

Penalties: N/A
Respondent: Alife Corporation, Budget Group, Inc. a/k/a BRAC Group, Inc., and Feather Valley Financial Ltd.,
Violation: Respondents are delinquent in their periodic filings with the Commission, have repeatedly failed to meet their obligations to file timely periodic reports, and failed to heed delinquency letters sent to them by the Division of Corporation Finance requesting compliance with their periodic filing obligations or, through their failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letters. Respondents failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder… Read More

Penalties: $125,000.00
Respondent: Thomas W. Avent, Jr., et al
Violation: Avent from violating the antifraud provisions of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder and orders him to pay a civil penalty of $125,000. In a separate administrative proceeding, Avent consented to the entry of a permanent bar from appearing or practicing before the Commission under Rule 102(e)(3) of the Commission’s Rules of Practice… Read More

Penalties: N/A
Respondent: Sean Kelly
Violation: Respondent fails to file the directed answer, or fails to appear at a hearing after being duly notified, the Respondent may be deemed in default and the proceedings may be determined against him upon consideration of this Order, the allegations of which may be deemed to be true as provided by Rules 155(a), 220(f), 221(f) and 310 of the Commission’s Rules of Practice, 17 C.F.R. §§ 201.155(a), 201.220(f), 201.221(f) and 201.310… Read More

Penalties: $125,0000.00
Respondent: Thomas W. Avent, Jr., CPA, Esq.
Violation: On July 7, 2016, the Commission filed a complaint against Avent in Securities and Exchange Commission v. Thomas W. Avent, Jr., et al., 1:16-cv-02459-WMR in the United States District Court for the Northern District of Georgia. On August 2, 2019, the court entered an order permanently enjoining Avent from violating the antifraud provisions of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder… Read More

Penalties: N/A
Respondent: Rolling Pin Kitchen Emporium, Inc., and Speed of Thought, Inc.,
Violation: “Respondents are delinquent in their periodic filings with the Commission, have repeatedly failed to meet their obligations to file timely periodic reports, and failed to heed delinquency letters sent to them by the Division of Corporation Finance requesting compliance with their periodic filing obligations or, through their failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letters. Respondents failed to comply with Exchange Act
Section 13(a) and Rules 13a-1 and 13a-13 thereunder… Read More

Penalties: N/A
Respondent: Oriental Magic Soup, Inc., Pan Ocean Container Supplies, Ltd. n/k/a Red Wolf Enterprises Int. or Red Wolf Enterprises, Inc., and You Han Data Tech Co Ltd
Violation: “Respondents are delinquent in their periodic filings with the Commission, have repeatedly failed to meet their obligations to file timely periodic reports, and failed to heed delinquency letters sent to them by the Division of Corporation Finance requesting compliance with their periodic filing obligations or, through their failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letters. Respondents failed to comply with Exchange Act
Section 13(a) and Rules 13a-1 and 13a-13 thereunder… Read More

Penalties: N/A
Respondent: Fighton Succession Corporation and Grand Enterprises, Inc.,
Violation: “Respondents are delinquent in their periodic filings with the Commission, have repeatedly failed to meet their obligations to file timely periodic reports, and failed to heed delinquency letters sent to them by the Division of Corporation Finance requesting compliance with their periodic filing obligations or, through their failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letters. Respondents failed to comply with Exchange Act
Section 13(a) and Rules 13a-1 and 13a-13 thereunder… Read More

Penalties: N/A
Respondent: Ceetop Inc. n/k/a S.Q Hydrogen Power, Inc., China Internet Cafe Holdings Group, Inc., and Starlight Supply Chain Management Company
Violation: “Respondents are delinquent in their periodic filings with the Commission, have repeatedly failed to meet their obligations to file timely periodic reports, and failed to heed delinquency letters sent to them by the Division of Corporation Finance requesting compliance with their periodic filing obligations or, through their failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letters. Respondents failed to comply with Exchange Act
Section 13(a) and Rules 13a-1 and 13a-13 thereunder… Read More

Penalties: N/A
Respondent: Elizabeth Oharriz
Violation: Respondent Oharriz be, and hereby is barred from participating in any offering of a penny stock, including: acting as a promoter, finder, consultant, agent or other person who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock… Read More

Penalties: N/A
Respondent: Jerry Lee Farish and New Summit Homes, Inc.
Violation: Farish and NSH did not use investor funds to build the home as promised and instead commingled investor funds in a NSH bank account with other funds, which Farish used to pay personal items, including Disney cruises, entertainment and retail expenses, and a retainer for a criminal defense lawyer for one of Farish’s sons. Despite raising more than $1 million for this single project, the real estate lot and the NSH bank account are empty today… Read More

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