Financial Enforcement Actions | Week of August 31 to September 06

Financial-Enforcement-Actions-Week-of-August-31-to-September-06

Financial-Enforcement-Actions-Week-of-August-31-to-September-06

FTC

14 Enforcement Documents

$42,530.00 in Fines

Penalties: $42,530.00
Respondent: Google LLC and YouTube, LLC
Violation: The FTC is also authorized to initiate federal district court proceedings, by its own attorneys, to recover civil penalties for violations of the COPPA Rule, if the Attorney General fails to initiate such litigation within 45 days after receipt of notice from the FTC of its intention to initiate such litigation. 15 U.S.C. §§ 56(a). With respect to the instant proceeding, the Attorney General received such notice from the FTC and failed to initiate the proceeding within 45 days… Read More

Penalties: N/A
Respondent: 214 Technologies, Inc., Trueface.ai
Violation: The acts and practices of Respondent as alleged in this complaint constitute deceptive acts or practices, in or affecting commerce, in violation of Section 5(a) of the Federal Trade Commission Act… Read More

Penalties: N/A
Respondent: Thru, Inc.
Violation: Companies under the jurisdiction of the FTC, as well as the U.S. Department of Transportation, are eligible to join the EU-U.S. Privacy Shield framework. A company under the FTC’s jurisdiction that claims it has self-certified to the Privacy Shield Principles, but failed to self-certify to Commerce, may be subject to an enforcement action based on the FTC’s deception authority under Section 5 of the FTC Act… Read More

Penalties: N/A
Respondent: DCR Workforce, Inc.
Violation: The acts and practices of Respondent as alleged in this complaint constitute deceptive acts or practices, in or affecting commerce, in violation of Section 5(a) of the Federal Trade Commission Act… Read More

Penalties: N/A
Respondent: Fidelity National Financial, Inc., et al.
Violation: The FTC alleges that if consummated, the merger would reduce an industry dominated by “the Big 4” players to the Big 3. Post-merger, Fidelity would control more than 43 percent of all title insurance sales nationwide, and over 40 percent of sales for large commercial transactions in most state-level markets. The FTC also authorized staff to seek in federal court a temporary restraining order and a preliminary injunction to prevent the parties from consummating the merger, and to maintain the status quo pending the administrative proceeding… Read More

Penalties: N/A
Respondent: AH Media Group, LLC
Violation: The FTC is authorized to initiate federal district court proceedings by its own attorneys, to enjoin violations of the FTC Act, ROSCA, and EFTA, and to secure such equitable relief as may be appropriate in each case, including rescission or reformation of contracts, restitution, the refund of monies paid, and the disgorgement of ill-gotten monies. 15 U.S.C. §§ 53(b), 57b, 8404 and 1693o(c)… Read More

Penalties: N/A
Respondent: Global Processing Solutions, Advanced Mediation Group, Lamar Snow, Jahaan McDuffie, and Glentis Wallace
Violation: Defendants falsely represent that a consumer has committed a crime and will face a lawsuit or arrest if the debt is not paid. For example, scripts used by Defendants contain misrepre8entation.s that consumers have engaged in check fraud, and that there are “pending” allegations or charges against the consumer for “breach of contract and malicious intent to defraud a financial institution.”… Read More

CFPB

3 Enforcement Documents

$489,000.00 in Fines

Penalties: $489,000.00
Respondent: Forensic Loan Auditors, LLC, Andrew Lehman, and Michael Carrigan
Violation: The complaint alleges that CFLA and Lehman have engaged in deceptive and abusive acts and practices and have charged unlawful advance fees in connection with the marketing and sale of financial advisory and mortgage assistance relief services to consumers. CFLA is a foreclosure relief services company incorporated in California and headquartered in Houston, Texas. Lehman is CFLA’s president and CEO… Read More

Penalties: N/A
Respondent: Certified Forensic Loan Auditors, LLC; Andrew Lehman; and Michael Carrigan
Violation: Carrigan provided substantial assistance or support to CFLA and Lehman when Carrigan knew or consciously avoided knowing that CFLA and Lehman were engaged in prohibited representations in violation of Regulation O. 12 C.F.R. § 1015.6… Read More

SEC

32 Enforcement Documents

$17,951,432.02 in Fines

Penalties: $1,288,735.20
Respondent: Lefavi Wealth Management, Inc.
Violation: LWM failed to disclose that it could have invested advisory client assets in the same Alternative Investment at a lower share price and that LWM did, in almost all instances, recommend and invest advisory client assets in Alternative Investments with higher share prices that included seven percent commissions… Read More

Penalties: N/A
Respondent: Karen McKinley
Violation: Financial Industry Regulatory Authority (FINRA), a self-regulatory organization that, among other things, regulates brokerage firms, permanently barred McKinley from associating with any FINRA member in any capacity for her failure to provide documents and information requested by FINRA during the course of its investigation into allegations relating to her compliance with pre-trade client confirmations in non-discretionary accounts… Read More

Penalties: $25,000.00
Respondent: Thomas C. Muldoon
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. As a result of the conduct described above, Muldoon willfully violated Section 10(b) of the Exchange Act and Rule 10b-5(a) and (c) thereunder, as well as MSRB Rule G-17… Read More

Penalties: $41,846.00
Respondent: Jayat P. Kanetkar and Guaranteed Investigations, Inc
Violation: The complaint charges Kanetkar and Guaranteed with aiding and abetting primary violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Kanetkar and Guaranteed have agreed to settle the charges without admitting or denying the allegations in the complaint and have consented to the issuance of final judgments permanently enjoining them from future violations of the antifraud provisions charged in the complaint… Read More

Penalties: N/A
Respondent: Tongli Pharmaceuticals (USA), Inc., and Vansen Pharma, 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. As a result of the foregoing, Respondents failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder… Read More

Penalties: N/A
Respondent: Hengyi International Industries Group, Inc., Jacobs Financial Group, Inc., and Ranger Gold Corp.,
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. As a result of the foregoing, Respondents failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder… Read More

Penalties: $94,713.00
Respondent: Mitchell J. Friedman
Violation: Mitchell Friedman’s failure to disclose to Sharpe 4 Partners, L.P., a private fund he advised, his material conflicts of interest arising from an arrangement with a separate private foreclosure fund (the “Foreclosure Fund”) pursuant to which he received fees based on the amount of assets invested therein by Sharpe 4 Partners. Friedman also misled two investors who unknowingly purchased Friedman’s own investment in the Foreclosure Fund. By virtue of his conduct, Friedman willfully violated Sections 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder… Read More

Penalties: $15,000,000.00
Respondent: The Options Clearing Corporation
Violation: OCC failed to establish, implement, maintain, and enforce policies and procedures reasonably designed to manage the legal risk that arises in or is borne by OCC. Specifically, as described below, OCC’s policies and procedures were not reasonably designed to provide for a well-founded, clear, transparent, and enforceable legal basis for each aspect of its activities in all relevant jurisdictions because OCC failed to file proposed rules before adopting certain policies and implemented certain policies prior to approval of the Commission… Read More

Penalties: N/A
Respondent: Comarco, Inc. and Eco-Shift Power Corp
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. As a result of the foregoing, Respondents failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder… Read More

Penalties: N/A
Respondent: Black Stallion Oil & Gas, Inc. n/k/a Arize Therapeutics, Inc. and Cannabis Science, 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. As a result of the foregoing, Respondents failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder… Read More

Penalties: N/A
Respondent: E. Herbert Hafen
Violation: Hafen instructed his clients to withdraw their money from the financial institution, including liquidating stock holdings and personal retirement accounts; deposit that money into their personal bank accounts; and then transfer or wire the money to Hafen’s personal bank account. The complaint further alleges that, once Hafen received his clients’ money, he did not invest it as promised, but instead used it for his own personal purposes, including paying house, car, and credit card expenses for himself and family members… Read More

Penalties: $130,000.00
Respondent: Daniel Khesin
Violation: DS Healthcare’s reported financial statements in its Forms 10-Q for the first three quarters of 2015, in its August 4, 2014 and June 2, 2015 Form S-3 Registration Statements, and in its May 1, 2015 S-8 Registration Statement were materially false and misleading. The Forms 10-Q for each of these periods contained false officer and SarbanesOxley certifications signed by Khesin… Read More

Penalties: $45,414.02
Respondent: Brendan Pollitz
Violation: Pollitz engaged in the foregoing conduct even though he knew or should have known that Gemini, Founder, and the sales representatives were not registered as broker-dealers or associated with registered broker-dealers, while soliciting investor capital for the KMI-TGLMG offering. Pollitz received $31,280 from Gemini for engaging in the foregoing conduct… Read More

Penalties: $1,073,349.80
Respondent: Alfred C. Teran
Violation: On December 11, 2018, the Commission entered an order by consent (the “Consent Order”) in this proceeding as to Teran. The Consent Order imposed certain sanctions against Teran, but ordered additional proceedings to determine what, if any, disgorgement, and prejudgment interest, he should be ordered to pay. The instant Order resolves disgorgement and prejudgment interest as to Teran… Read More

Penalties: $129,058.00
Respondent: Keith G Daubenspeck and Geoffrey L Homer
Violation: The complaint charges Daubenspeck and Homer with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and seeks permanent injunctions and monetary relief. Without admitting or denying the allegations in the complaint, Daubenspeck consented to a final judgment permanently enjoining him from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule10b-5 thereunder… Read More

Penalties: $43,589.00
Respondent: Toon Goggles Inc et al
Violation: Warkol, acting as an unregistered broker, set up boiler rooms inside Toon Goggles’ offices and hired sales agents to coldcall investors. Warkol allegedly provided the sales agents with scripts to lure investors into purchasing the offered securities. According to the complaint, Toon Goggles also failed to maintain accurate and complete records of its investors, the number of shares sold to each investor, and the amount of money raised from each investor… Read More

Penalties: $80,000.00
Respondent: Abner Silva
Violation: This consisted of recognizing fictitious revenue; intentionally or severely recklessly overbilling a customer and crediting the customer in a later quarter; and shipping products that were sold pursuant to sales practices that violated the Company’s revenue recognition policies, such as shipping products at the end of quarters with no reasonable expectation of payment at the time of shipment and when the customer was on an accounts receivable hold, improper bill and hold sales, and improper consignment sales. As a result, DS Healthcare’s reported financial statements in its Forms 10-Q for the first three quarters of 2015, in its August 4, 2014 and June 2, 2015 Form S-3 Registration Statements, and in its May 1, 2015 S-8 Registration Statement were materially false and misleading… Read More

CFTC

1 Enforcement Document

$50,000,000.00 in Fines

Penalties: $50,000,000.00
Respondent: The Options Clearing Corporation
Violation: OCC failed to fully comply with the specified DCO Core Principles by failing to establish, implement, and enforce certain policies and procedures reasonably designed to (1) consider and produce margin levels commensurate with every potential risk and pmiicular attribute of each relevant product cleared by OCC; (2) effectively measure, monitor and manage its credit exposure and liquidity risk; and (3) protect the security of certain of its information systems… Read More

X