Financial Enforcement Actions | Week of Jan 06 to Jan 11

FINRA

12 Enforcement Documents

$200,914.14 in Fines

Penalties: $13,077.94
Respondent: Todd B. Wyche
Violation: Respondent willfully failed to amend his Form U4 to disclose a federal tax lien… Read More

Penalties: $13,918.10
Respondent: Arthur Mansourian, Richard Daniel Tabizon, Sperry Randall Younger, Trevor Michael Saliba
Violation: Registered principal: (1) caused his firm to violate restrictions imposed by FINRA by functioning in a principal capacity when prohibited from doing so; (2) failed to cooperate fully with a FINRA request for information and provided false information to FINRA; (3) provided to FINRA documents he knew or should have known were false; and (4) participated in the falsification of compliance records that were provided to FINRA… Read More

Penalties: $13,918.10
Respondent: Trevor Michael Saliba, Sperry Randall Younger, Richard Daniel Tabizon, Arthur Mansourian
Violation: Registered principal: (1) caused his firm to violate restrictions imposed by FINRA by functioning in a principal capacity when prohibited from doing so; (2) failed to cooperate fully with a FINRA request for information and provided false information to FINRA; (3) provided to FINRA documents he knew or should have known were false; and (4) participated in the falsification of compliance records that were provided to FINRA… Read More

Penalties: N/A
Respondent: Daniel Todd Levine
Violation: In connection with its investigation into allegations that Levine engaged in undisclosed outside business activities, solicited a senior Firm customer to borrow funds for an outside business activity, and executed unauthorized trades, FINRA staff sent Levine a request for documents and information pursuant to FINRA Rule 8210. Levine failed to provide information requested by FINRA staff pursuant to Rule 8210. As a result, Levine violated FINRA Rules 8210 and 2010… Read More

Penalties: N/A
Respondent: Jaime E. Carvallo
Violation: From November 2011 through June 2015, Carvallo forged the signatures of ten Firm employees and used their confidential personal information to create false online bidding accounts at three auction houses in their names, and to participate in 26 auctions, without the employees’ authorization. Carvallo engaged in this conduct after the auction houses prohibited him from participating in auctions because he had previously failed to pay for or collect items he had won at auction. By virtue of this conduct, Carvallo violated FINRA Rule 2010… Read More

Penalties: N/A
Respondent: Charles Gonzalez
Violation: Between June 2017 and January 2018, while associated with Spartan, Gonzalez took significant steps to create a broker-dealer without notifying the Firm. By engaging in outside business activity without first notifying the Firm in writing, Gonzalez violated FINRA Rules 3270 and 2010. Pursuant to FINRA Rule 8210, FINRA requested documents and information from Gonzalez and required him to appear and provide testimony. Gonzalez produced falsified documents and provided false testimony to FINRA. By doing so, Gonzalez violated FINRA Rules 8210 and 2010… Read More

Penalties: $5,000.00
Respondent: Gregory Rusnak
Violation: Rusnak exercised discretion in two customer accounts, between March 2014 and May 2017, without prior written authorization from the customers or Sigma, in violation of NASD Conduct Rule 2510(b) and FINRA Rule 2010… Read More

Penalties: $125,000.00
Respondent: CFD Investments, Inc.
Violation: Between July 18, 2014, and July 18, 2016 (the “Relevant Period”), CFD failed to establish, maintain and enforce a supervisory system and written supervisory procedures reasonably designed to ensure that representatives’ recommendations of variable annuities complied with applicable securities laws and regulations and FINRA Rules. As a result, CFD violated FINRA Rules 2330(d) and (e), NASD Rule 3010 (for conduct before December 1, 2014), FINRA Rule 3110 (for conduct on and after December 1, 2014), and FINRA Rule 2010… Read More

Penalties: $5,000.00
Respondent: Deming Anthony Payne
Violation: On six occasions during August 2017, Payne received requests via email from an individual posing as a customer to process eight wire transfers from the customer’s account. Payne failed to obtain verbal verification of the instructions from the actual customer, who was unaware of the imposter’s requests, even though the imposter’s requests presented multiple red flags. On five occasions, Payne falsely attested to the Firm that he had obtained such verbal verification… Read More

Penalties: TBD
Respondent: Dennis Allen Hayes
Violation: Hayes did not provide any written or any other notification to the Firm regarding his participation in these private securities transactions. The investors suffered losses of at least $2.3 million after one of the companies filed for bankruptcy and the other companies ceased operations. By this conduct, Hayes violated NASD Conduct Rule 3040 (for conduct until September 20, 2015), FINRA Rule 3280 (for conduct beginning September 21, 2015) and FINRA Rule 2010… Read More

Penalties: N/A
Respondent: Mark Isidore Lamendola (“Lamendola”)
Violation: Lamendola made misrepresentations to customer WW by fabricating two letters that purported to come from an annuity company regarding the status of the customer’s deposit. Lamendola also altered the customer’s complaint letter to conceal that he settled away from his employing firm, WCB… Read More

Penalties: $25,000.00
Respondent: Donald Logan
Violation: Between January 2012 and October 2018, Logan willfully failed to timely amend his Uniform Application for Securities Industry Registration or Transfer Form (“Form U4”) to disclose three civil judgments and a compromise with a creditor, in violation of Article V, Section 2(c) of the FINRA By-Laws and FINRA Rules 1122 and 2010… Read More

SEC

1 Enforcement Document

$15,000,000.00 in Fines

Penalties: $15,000,000.00
Respondent: Katz, Sapper & Miller, LLP and Scott C. Price, CPA
Violation: This matter involves improper professional conduct by Respondents in completing audits pursuant to Section 206(4) of the Advisers Act and Rule 206(4)-2 thereunder (the “Custody Rule”)… Read More

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