Financial Enforcement Actions | Week of Aug 22 to Aug 28
Respondent: Dennis Jali, et al.
Violation: Orchestrated a Ponzi scheme that ultimately yielded over $28 million in fraudulently solicited funds from over 1,000 individuals, entities, and groups of individuals located in this District and throughout the United States (collectively, “participants”)... Read More
Violation: PHLoans sent consumers millions of mailers for VAguaranteed mortgages that contained false, misleading, and inaccurate statements or that lacked required disclosures, in violation of the Consumer Financial Protection Act’s (CFPA) prohibition against deceptive acts and practices, the Mortgage Acts and Practices—Advertising Rule (MAP Rule), and Regulation Z... Read More
Respondent: Narinder Kaur Singh
Violation: In August 2020, Singh refused to provide on-the-record testimony requested by FINRA pursuant to FINRA Rule 8210, thereby violating FINRA Rules 8210 and 2010... Read More
Respondent: Rani Soto
Violation: Rani Soto failed to disclose five outside business activities (OBAs) to his member firm, Prudential Investment Management Services LLC (Prudential), prior to engaging in the OBAs... Read More
Respondent: James Michael Rapisarda
Violation: Between February and March 2018, while registered through LPL, Rapisarda participated in private securities transactions without providing prior written notice to his firm, in violation of FINRA Rules 3280 and 2010... Read More
Respondent: Wells Fargo Advisors, LLC n/k/a Wells Fargo Clearing Services, LLC
Violation: Between November 2012 and October 2015, two former firm representatives, Charles Frieda and Charles Lynch, recommended that many of their customers invest a substantial portion of their assets at Wells Fargo in four high-risk energy securities... Read More
Respondent: Jesse T. Kovacs
Violation: In March 2018, Kovacs participated in a private securities transaction without providing prior written notice to his firm, in violation of FINRA Rules 3280 and 2010... Read More
Respondent: Barclays Capital Inc.
Violation: From April 30, 2013 to June 30, 2016 (review period), Barclays failed to fully and accurately report its short interest positions in certain foreign-listed securities. More specifically, during the review period, the Firm over-reported 35 short interest positions in foreign-listed securities by 6,489,738 shares and failed to report 18 positions in foreign-listed securities totaling 6,275,073 shares... Read More
Respondent: Jose A. Yniguez
Violation: From March through November 2018, Yniguez was employed as an assistant to AB, the founder and chairman of Company C, receiving compensation for his services. By engaging in this outside business activity without providing prior written notice to Transamerica, Yniguez violated FINRA Rules 3270 and 2010... Read More
Respondent: Lynn Dale Cawthorne
Violation: Lynn Dale Cawthorne failed to comply with FINRA’s requests for information made pursuant to FINRA Rule 8210 in June, August, September, and November 2019 in connection with an investigation of (a) his failure to disclose multiple felony charges and (b) other potential violations. As a result, Cawthorne violated FINRA Rules 8210 and 2010... Read More
Respondent: Charles D. Burchard
Violation: Burchard refused to provide any information and documents responsive to this request and, thereby, violated FINRA Rules 8210 and 2010... Read More
Respondent: Michael F. Coomes, Jr.
Violation: In December 2018, Coomes exercised discretion without written authorization in 24 customer accounts, in violation of NASD Rule 2510(b) and FINRA Rule 2010... Read More
Respondent: CFD Investments, Inc. Matthew Bahrenburg
Violation: By failing to conduct reasonable due diligence into the Payson offering, CFD and Bahrenburg violated NASD Rule 3010, and FINRA Rules 3110 and 2010... Read More
Respondent: UBS Financial Services Inc.
Violation: From August 2016 to February 2018, UBS violated F1NRA Rules 7450 and 2010 by submitting 15,863 reports to OATS that omitted data, contained inaccurate data, or contained improperly formatted data such that the orders submitted to OATS could not be matched with orders submitted to certain exchanges... Read More
Respondent: Herbalife Nutrition Ltd.
Violation: This matter concerns violations of the books and records and internal accounting controls provisions of the Foreign Corrupt Practices Act (“FCPA”) by Herbalife, a direct selling company incorporated in the Cayman Islands with headquarters in the United States... Read More
Respondent: Bankrate, Inc.
Violation: During the second quarter of 2012, Bankrate, through its chief financial officer, Edward DiMaria (“DiMaria”), vice president and director of accounting, Matthew Gamsey (“Gamsey”), and vice president of finance, Lerner, intentionally manipulated its financial results to meet and/or exceed analyst consensus estimates for key financial metrics... Read More
Respondent: Aldo Marchena
Violation: Marchena admitted that between October 2016 and January 2017, he stole more than $1 million from a client. To conceal this fraud, Marchena created and provided to his client fake account statements that purported to show the client’s investments increasing in value over time... Read More
Respondent: Vstock Transfer LLC
Violation: Between November 2017 and April 2019, Commission-registered transfer agent VStock failed to comply with certain transfer agent rules relating to the turnaround, custody, and record-keeping provisions of the Exchange Act and the rules promulgated thereunder... Read More
Respondent: Richard Barone
Violation: Dominic Tropiano engaged in unauthorized and unsuitable trading in leveraged exchange traded funds (“ETFs”) in the accounts of customers of America Northcoast Securities, Inc. (“ANS”)... Read More
Respondent: BorgWarner Inc.
Violation: From 2012 until the fourth quarter of 2016, BorgWarner failed to estimate its “incurred but not reported” or “IBNR” liability for future asbestos claims.... Read More
Respondent: Super Micro Computer, Inc.
Violation: Super Micro Computer, Inc., a producer of computer servers headquartered in California, engaged in improper accounting—prematurely recognizing revenue and understating expenses from at least fiscal year (“FY”) 2015 through FY 2017... Read More
Respondent: Howard Hideshima
Violation: Howard Hideshima, the former Chief Financial Officer of Super Micro Computer, Inc. (“Super Micro”), engaged in improper accounting and caused internal accounting controls failures, which resulted in Super Micro systematically prematurely recognizing and reporting revenue and understating expenses from at least fiscal year (”FY”) 2015 through FY 2017... Read More
Respondent: Charles Liang
Violation: Super Micro Computer, Inc., a producer of computer servers headquartered in California, engaged in improper accounting—prematurely recognizing revenue and understating expenses from at least fiscal year (“FY”) 2015 through FY 2017. As a result, Super Micro filed with the Commission materially misstated financial statements in its annual, quarterly and current reports during the period... Read More