Financial Enforcement Actions | Week of December 21 to December 27

Financial-Enforcement-Actions-Week-of-December-21-to-December-27

Financial-Enforcement-Actions-Week-of-December-21-to-December-28

SEC

6 Enforcement Documents

$9,949,187.00 in Fines

Penalties: $3,949,189.00
Respondent: Navnoor S. Kang, Gregg Z. Schonhorn, and Deborah D. Kelley
Violation: The SEC’s complaint alleged that Kang breached his fiduciary duty to disclose his solicitation and receipt of the gifts and entertainment he received from Schonhorn and Kelley. Schonhorn and Kelley allegedly knew Kang was not disclosing his activities to the Fund, and they took steps to keep the benefits a secret. The Court entered the final judgments based upon Kang’s, Schonhorn’s, and Kelley’s consent to resolve all claims. The final judgments permanently enjoin Kang, Schonhorn, and Kelley from violating 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, and permanently enjoin Kang from participating in any decisions involving investments in securities by public pensions as a trustee, officer, employee, or agent… Read More

Penalties: $5,999,998.00
Respondent: Amir Waldman, et al.
Violation: The amended complaints allege that the Mobileye founders provided material nonpublic information about the tender offer to James Shaoul, who in turn tipped his brother Roger Shaoul and his friend Amir Waldman. As alleged, Roger Shaoul and Waldman both traded in advance of the tender offer announcement, earning illicit profits of $925,436 and approximately $7.1 million, respectively.The final judgments against Roger Shaoul and James Shaoul enjoin them 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: Thomas J. Connerton and Safety Technologies LLC
Violation: In the parallel civil action, filed in June 2016, the SEC charged Connerton and his company, Safety Technologies LLC, with making false and misleading statements to investors about potential business deals and misappropriating investor fund for his personal use. The victims of Connerton’s alleged scheme included several women Connerton met through an online dating website. When the SEC filed its case it stopped the ongoing fraud and froze Connerton’s assets. In early 2017, Connerton and Safety Technologies agreed to settle the SEC’s charges and pay more than $1.89 million in disgorgement, interest, and civil penalties. They also consented to a lifetime ban on participating in the issuance, purchase, offer, or sale of any security… Read More

Penalties: N/A
Respondent: Fieldstone Financial Management Group, LLC and Kristofor R. Behn
Violation: On July 1, 2019, the Commission issued an Order Instituting Administrative and Ceaseand-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Section 21C of the Securities Exchange Act of 1934, Sections 203(e), 203(f) and 203(k) of the Investment Advisers Act of 1940, and Section 9(b) of the Investment Company Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order (“Order”)1 against Fieldstone Financial Management Group, LLC and Kristofor R. Behn (collectively, the “Respondents”)… Read More

Penalties: N/A
Respondent: FCA US LLC and Fiat Chrysler Automobiles N.V.
Violation: On September 27, 2019, the Commission issued 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 Remedial Sanctions and a Cease-and-Desist Order (“Order”)1 against FCA US LLC and Fiat Chrysler Automobiles N.V. (collectively, the “Respondents”)… Read More

Penalties: N/A
Respondent: Bill Tsai
Violation: The Commission’s complaint in the Civil Action alleged that Tsai engaged in insider trading while employed as a junior analyst at Investment Bank A, where, in the course of his work, he learned in March 2019 that an affiliate of the private equity firm Siris Capital Group, LLC (“Siris”) had agreed to acquire the digital printing technology company Electronics for Imaging, Inc. (“EFII”). Shortly thereafter, Tsai misappropriated this material nonpublic information by purchasing out-of-the-money EFII call options in a personal brokerage account that he had concealed from his employer. Accordingly, it is hereby ORDERED pursuant to Section 15(b)(6) of the Exchange Act, and Section 203(f) of the Advisers Act, that Respondent Tsai be, and hereby is barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipa advisor, transfer agent, or nationally recognized statistical rating organization… Read More

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