Financial Enforcement Actions | Week of Aug 29 to Sep 04

Enforcement Report Aug 29 - 04 feat img

Enforcement Report Aug 29 - Sep 04

FTC

1 Enforcement Document

$0.00 in Fines

Penalties: N/A
Respondent: AGE OF LEARNING, INC., a corporation, also d/b/a ABCmouse and ABCmouse.com,
Violation: Based on the facts and violations of law alleged in this Complaint, the FTC has reason to believe that Defendant is violating or is about to violate laws enforced by the Commission because, among other things... Read More

CFTC

23 Enforcement Documents

$0.00 in Fines

Penalties: N/A
Respondent: Granttradefx.com,
Violation: Respondent is not a registered FCM or RFED or the person who received the NFA ID number. Thus, Respondent has violated and is violating Section 6(c)(1) of the Act, 7 U.S.C. § 9(1) (2018), and Commission Regulation 180.1(a), 17 C.F.R. § 180.1(a) (2019)... Read More

Penalties: N/A
Respondent: Toptradecapitalfx.com
Violation: Respondent has violated and is violating Section 6(c)(1) of the Act, 7 U.S.C. § 9(1) (2018), and Commission Regulation 180.1(a), 17 C.F.R. § 180.1(a) (2019)... Read More

Penalties: N/A
Respondent: Westtechtrade.com,
Violation: Respondent is not a registered FCM or RFED or the person who received the NFA ID number... Read More

Penalties: N/A
Respondent: Ultracapitals,
Violation: Respondent has violated and is violating Section 6(c)(1) of the Act, 7 U.S.C. § 9(1) (2018), and Commission Regulation 180.1(a), 17 C.F.R. § 180.1(a) (2019)... Read More

Penalties: N/A
Respondent: DSTCLOUDS International Limited,
Violation: the listed entity is not registered with the Commission or a member of the National Futures Association (“NFA”). Although that entity received an NFA ID by filing a notice of exemption from registering as a commodity pool operator, it was not a member of the NFA and not subject to NFA oversight... Read More

Penalties: N/A
Respondent: Westintrade.com
Violation: Respondent further advertises that it is a registered FCM and RFED and a member of the National Futures Association (“NFA”), and provides an NFA ID number, thus attempting to create a false perception of legitimacy in connection with soliciting customers. However, in truth, Respondent is not a registered FCM or RFED or the person who received the NFA ID number... Read More

Penalties: N/A
Respondent: Yobcryptotrade24.com,
Violation: Respondent is not a registered FCM or RFED; nor is Respondent the person to whom NFA assigned the advertised NFA ID number... Read More

Penalties: N/A
Respondent: Bullet Capital & Contract Occurrence Management Merchants,
Violation: Respondent markets itself by linking to NFA database entry for another unrelated entity with a similar name that was registered at the time... Read More

Penalties: N/A
Respondent: Goldman Global Investment Funds Ltd.,
Violation: Although that entity received an NFA ID by filing a notice of exemption from registering as a commodity pool operator, it was not a member of the NFA and not subject to NFA oversight... Read More

Penalties: N/A
Respondent: Merryl Morgan,
Violation: Respondent has violated and is violating Section 6(c)(1) of the Act, 7 U.S.C. § 9(1) (2018), and Commission Regulation 180.1(a), 17 C.F.R. § 180.1(a) (2019)... Read More

Penalties: N/A
Respondent: Swiss FX Trade,
Violation: Respondent has violated and is violating Section 6(c)(1) of the Act, 7 U.S.C. § 9(1) (2018), and Commission Regulation 180.1(a), 17 C.F.R. § 180.1(a) (2019)... Read More

Penalties: N/A
Respondent: Vertex Holdings Limited,
Violation: Respondent has violated and is violating 2 Section 6(c)(1) of the Act, 7 U.S.C. § 9(1) (2018), and Commission Regulation 180.1(a), 17 C.F.R. § 180.1(a)... Read More

Penalties: N/A
Respondent: ESOM a/k/a ESO MM LLC,
Violation: Respondent violated Section 6(c)(1) of the Act, 7 U.S.C. § 9(1) (2018), and Commission Regulation 180.1(a), 17 C.F.R. § 180.1(a) (2019)... Read More

Penalties: N/A
Respondent: Fidelityfxtrade.com,
Violation: Respondent has violated and is violating Section 6(c)(1) of the Act, 7 U.S.C. § 9(1) (2018), and Commission Regulation 180.1(a), 17 C.F.R. § 180.1(a) (2019)... Read More

Penalties: N/A
Respondent: United Financial Limited,
Violation: Respondent has violated and is violating Section 6(c)(1) of the Act, 7 U.S.C. § 9(1) (2018), and Commission Regulation 180.1(a), 17 C.F.R. § 180.1(a) (2019)... Read More

Penalties: N/A
Respondent: Zenithoptionstrade.net,
Violation: Respondent has violated and is violating Section 6(c)(1) of the Act, 7 U.S.C. § 9(1) (2018), and Commission Regulation 180.1(a), 17 C.F.R. § 180.1(a) (2019)... Read More

Penalties: N/A
Respondent: iMarketsserviceFX.com,
Violation: Respondent has violated and is violating Section 6(c)(1) of the Act, 7 U.S.C. § 9(1) (2018), and Commission Regulation 180.1(a), 17 C.F.R. § 180.1(a) (2019)... Read More

Penalties: N/A
Respondent: Zenithtradermarkets.com,
Violation: Respondent has violated and is violating Section 6(c)(1) of the Act, 7 U.S.C. § 9(1) (2018), and Commission Regulation 180.1(a), 17 C.F.R. § 180.1(a) (2019)... Read More

Penalties: N/A
Respondent: Bitfx24option.com,
Violation: Respondent has violated and is violating Section 6(c)(1) of the Act, 7 U.S.C. § 9(1) (2018), and Commission Regulation 180.1(a), 17 C.F.R. § 180.1(a) (2019)... Read More

Penalties: N/A
Respondent: Sumtrades,
Violation: Respondent has violated and is violating Section 6(c)(1) of the Act, 7 U.S.C. § 9(1) (2018), and Commission Regulation 180.1(a), 17 C.F.R. § 180.1(a) (2019)... Read More

FINRA

10 Enforcement Documents

$2,290,168.00 in Fines

Penalties: $40,000.00
Respondent: Stifel, Nicolaus & Company, Inc.
Violation: From October 31, 2017 through February 27, 2020 (the review period), Stifel lacked a supervisory system, including written supervisory procedures (WSPs), reasonably designed to detect and prevent Stifel and its registered representatives from executing pre-arranged transactions... Read More

Penalties: $75,000.00
Respondent: State Street Global Markets, LLC
Violation: The examination found that although State Street Global Markets reported its maker-taker model payment for order flow arrangements with its top routing venues, which included other broker-dealers and U.S. equity exchanges, it failed to specify certain material aspects (specifically, amounts per share or per order) with respect to those payment for order flow arrangements for various quarters between 2008 and 2016... Read More

Penalties: $30,000.00
Respondent: Citadel Securities LLC
Violation: During the Review Period, the Firm also failed to establish and maintain a system to supervise, including written supervisory procedures (“WSPs”), reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA rules, with respect to FINRA Rule 6432 (Supplementary Material .01). As a result, the Firm violated FINRA Rules 3110 and 2010... Read More

Penalties: $5,000.00
Respondent: Chih-Ming Huang
Violation: Huang violated FINRA Rules 1122 and 2010 and Article V, Section 2(c) of FINRA’s ByLaws for willfully failing to disclose on his Uniform Application For Securities Industry Registration Or Transfer (Form U4) five felony charges and a misdemeanor theft charge 2 in March 2019, and his subsequent nolo contendere plea to the misdemeanor theft charge in May 2019... Read More

Penalties: $5,000.00
Respondent: Christina Jane Shepard
Violation: for paperwork on at least five accounts, Shepard used Wite-Out to alter dates on outdated account opening and transfer forms. By altering the signed customer documents, Shepard violated FINRA Rule 2010. In addition, Shepard separately violated FINRA Rules 4511 and 2010 by causing her firm to maintain inaccurate books and records... Read More

Penalties: $2,120,167.50
Respondent: Wells Fargo Clearing Services, LLC, Wells Fargo Advisors Financial Network, LLC
Violation: From January 2011 through August 2016 (the “Relevant Period”), Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC (together “Wells Fargo” or the “Firm”) failed to establish and maintain a supervisory system, and failed to enforce written supervisory procedures (“WSPs”), that were reasonably designed to achieve compliance with FINRA’s suitability rule as it pertains to switches from variable annuities to investment company products... Read More

Penalties: N/A
Respondent: Peter Vincent Ianace
Violation: In connection with FINRA's investigation into Ianace's potential failure to disclose outside business activities to the Firm, FINRA staff issued Ianace a request for documents and information pursuant to FINRA Rule 8210. Ianace refused to provide the documents and information requested in violation of FINRA Rules 8210 and 2010... Read More

Penalties: $10,000.00
Respondent: Kimberley Schkade-Hill
Violation: While associated with LSF, Hill caused at least 49 different customers to sign at least 79 blank or incomplete account forms intended to process account openings and transfers, which were later filled in by an LSF registered sales assistant... Read More

Penalties: N/A
Respondent: Michael Rubel
Violation: Between June 12, 2015 and March 15, 2017 (the "Relevant Period"), Rubel engaged in an unsuitable pattern of short-term trading of Unit Investment Trusts in customer accounts. Based on the foregoing, Rubel violated FINRA Rules 2111 and 2010... Read More

Penalties: $5,000.00
Respondent: John R. Jaramillo
Violation: Between April and September 2016, Jaramillo participated in unapproved private securities transactions involving the sale of promissory notes totaling $250,000. Jaramillo's conduct violated FINRA Rules 3280 and 2010... Read More

SEC

21 Enforcement Documents

$79,500,539.00 in Fines

Penalties: N/A
Respondent: Sean R. Stewart
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”) and Section 203(f) of the Investment Advisers Act of 1940 (“Advisers Act”) against Sean R. Stewart (“Respondent” or “Stewart”)... Read More

Penalties: N/A
Respondent: Northsight Capital Inc.
Violation: As discussed in more detail above, the Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it on February 27, 2020, by the Comission’s Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter. As a result of the foregoing, the Respondent failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder... Read More

Penalties: $43,218.00
Respondent: Yue Li
Violation: As a result of the conduct described above, Li violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, which prohibit fraudulent conduct in connection with the purchase or sale of securities... Read More

Penalties: N/A
Respondent: Unifunds Limited,
Violation: As discussed in more detail above, the Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it on February 27, 2020, by the Comission’s Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter... Read More

Penalties: N/A
Respondent: FuelCell Energy, Inc.
Violation: As a result, FuelCell violated Section 5(b)(2) of the Securities Act by failing to deliver to investors prospectuses containing the information required under Section 10(a) of the Securities Act and the rules thereunder... Read More

Penalties: N/A
Respondent: Vladislav Khalupsky
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 Vladislav Khalupsky (“Respondent”)... Read More

Penalties: N/A
Respondent: Green Technology Solutions, Inc.,
Violation: As discussed in more detail above, the Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it on February 27, 2020, by the Comission’s Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter. As a result of the foregoing, the Respondent failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder... Read More

Penalties: N/A
Respondent: Wilmington Trust Corporation
Violation: The Commission found, among other things, that the Bank omitted almost $339 million in matured loans past due 90 days or more from its disclosures in its filings with the Commission for the third quarter of 2009; omitted over $330 million in matured loans past due 90 days or more from its disclosures in its filings for the year ended 2009; and incorporated its false and misleading Form 10-K for 2009 by reference in the offering materials for a February 2010 public offering in which the Bank sold $287 million of its common stock... Read More

Penalties: N/A
Respondent: Token Communities Ltd.
Violation: As discussed in more detail above, the Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it on June 12, 2020 , by the Comission’s Division of Corporation Finance requesting compliance with its periodic filing obligations, which was delivered... Read More

Penalties: $80,000.00
Respondent: Signature Financial Services, Ltd.
Violation: Respondent willfully violated Section 206(2) of the Advisers Act, which makes it unlawful for any investment adviser, directly or indirectly, to “engage in any transaction, practice or course of business which operates as a fraud or deceit upon any client or prospective client.” Scienter is not required to establish a violation of Section 206(2), but rather a violation may rest on a finding of negligence... Read More

Penalties: N/A
Respondent: Covalent Collective, Inc.
Violation: As a result of the conduct described above, Covalent violated Section 5(a) of the Securities Act, which prohibits the sale of securities through interstate commerce or the mails unless a registration statement is in effect, and Section 5(c) of the Securities Act, which prohibits the offer to sell any security through interstate commerce or the mails, unless a registration statement has been filed as to such security with the Commission... Read More

Penalties: $2,461,193.00
Respondent: National Financial Services LLC
Violation: NFS violated Section 5(b)(2) of the Securities Act by failing to deliver final prospectuses to purchasers of these securities. NFS also violated Rule 173 of the Securities Act by failing to provide purchasers with copies of the final prospectus or notice that the sales were pursuant to a registration statement... Read More

Penalties: $75,000.00
Respondent: SQN Capital Management, LLC
Violation: Section 206(4) of the Advisers Act prohibits an investment adviser from engaging in acts, practices or courses of business that are fraudulent, deceptive, or manipulative, as defined by the Commission in rules and regulations promulgated under the statute. Proof of scienter is not required to establish a violation of Section 206(4) of the Advisers Act and the rules thereunder... Read More

Penalties: N/A
Respondent: Cür Media, Inc., Crednology Holding Corporation (n/k/a Corptech Holding, Inc.)
Violation: COHO (CIK No. 1101588) is a delinquent Delaware corporation located in Northridge, California with a class of securities registered with the Commission under Exchange Act Section 12(g)... Read More

Penalties: N/A
Respondent: US VR Global.com Inc
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it on February 27, 2020, by the Comission’s Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter. As a result of the foregoing, the Respondent failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder... Read More

Penalties: N/A
Respondent: Anton Senderov and Lior Barbazara
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 Anton Senderov and Lior Barbazara (“Respondents”)... Read More

Penalties: N/A
Respondent: Rorine International Holding Corporation
Violation: As discussed in more detail above, the Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it on February 27, 2020, by the Comission’s Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter. As a result of the foregoing, the Respondent failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder... Read More

Penalties: N/A
Respondent: Oncolix, Inc.,
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it on June 19, 2020, by the Commission’s Division of Corporation Finance requesting compliance with its periodic filing obligations, which was delivered... Read More

Penalties: $18,545,896.00
Respondent: Wilmington Trust Corporation
Violation: The Commission found, among other things, that the Bank omitted almost $339 million in matured loans past due 90 days or more from its disclosures in its filings with the Commission for the third quarter of 2009; omitted over $330 million in matured loans past due 90 days or more from its disclosures in its filings for the year ended 2009; and incorporated its false and misleading Form 10-K for 2009 by reference in the offering materials for a February 2010 public offering in which the Bank sold $287 million of its common stock... Read More

Penalties: $8,000,000.00
Respondent: Vereit, Inc.
Violation: On June 23, 2020, the Commission instituted and simultaneously settled a cease-anddesist proceeding by issuing 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 a Cease-and-Desist Order (“Order”)1 against VEREIT, Inc. (formerly known as American Realty Capital Properties, Inc.) (the “Company” or the “Respondent”)... Read More

Penalties: $50,295,232.00
Respondent: Bethany Liou and Golden California Regional Center, LLC
Violation: On November 4, 2019, the Commission issued an Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Making Findings, and Imposing a Cease-and-Desist Order (the “Order”)1 against Bethany Liou (“Liou”) and Golden California Regional Center, LLC (“GCRC”) (collectively, the “Respondents”). In the Order, the Commission found that beginning in July 2016, the Respondents raised at least $45,000 from at least 90 investors through an offering of limited partnership interests in the GCRC Cupertino Fund (the “Cupertino Fund”)... Read More

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