Compliance.ai

January 2019 Enforcement Action Summary

CFPB

1 Enforcement Document

$1.00 in Fines

Penalties: $1.00
Respondent: Mark Corbett
Violation: Corbett violated the Consumer Financial Protection Act of 2010 by misrepresenting to consumers that the contracts he facilitates are valid and enforceable when, in fact, the contracts are void because veterans’ pension payments are unassignable under federal law; misrepresenting to consumers that the offered product is a purchase of payments and not a high-interest credit offer; misrepresenting to consumers when they will receive their funds; and failing to disclose to consumers the applicable interest rate on the credit offer… Read More

FINRA

5 Enforcement Documents

$175,000.00 in Fines

Penalties: TBD
Respondent: Thomas Lee Johnson
Violation: Johnson falsely stated that, at his request, two sales assistants at the Firm researched the transaction and value of his Doosan stock and confirmed that the $1,059,544.98 he received from the sale of his Doosan stock and warrants was accurate. By providing false and misleading information to FINRA, Johnson violated FINRA Rules 8210 and 2010… Read More

Penalties: $5,000.00
Respondent: Bruce Zaro
Violation: In October 2017, Respondent, without prior knowledge or authorization by his Firm customer, signed the signature of his Firm customer on an IRA/ESA Distribution Request (“Distribution Request”). By engaging in this conduct, Respondent violated FINRA Rule 2010. Respondent also violated FINRA Rules 4511 and 2010 by causing the Firm to maintain inaccurate books and records in violation of Section 17(a) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 17a-3 thereunder… Read More

Penalties: $165,000.00
Respondent: Hennion & Walsh, Inc.
Violation: The Firm’s registered representatives did not reasonably assess whether the alleged benefits to the customers from the switches outweighed the additional sales charges the customers would incur by making the switch. The Firm also failed to establish and maintain a supervisory system, including written supervisory procedures, reasonably designed to detect and prevent unsuitable series-to-series UIT switching… Read More

Penalties: N/A
Respondent: Kristian Gaudet
Violation: Gaudet has refused to appear for testimony requested pursuant to FINRA Rule 8210 on the date scheduled or at any time. By refusing to provide on-the-record testimony as requested pursuant to FINRA Rule 8210, Gaudet violates FINRA Rules 8210 and 2010… Read More

Penalties: $5,000.00
Respondent: Jenna A. Brown
Violation: Between January 10, 2018 and January 25, 2018 (the “Relevant Period”), Brown forged signatures on more than twenty investment advisory agreements, in violation of FINRA Rule 2010… Read More

SEC

3 Enforcement Documents

$652,731.00 in Fines

Penalties: $652,731.00
Respondent: American Growth Funding II, LLC, et al.
Violation: Between March 2011 and December 2013, AGF II and Johnson falsely claimed that AGF II’s financial statements were being audited each year. AGF II made misrepresentations in its offering documents about its management and concealed details about deteriorating loan values that could imperil full payment of the promised returns to investors… Read More

Penalties: N/A
Respondent: Final Judgment – AGF II; – American Growth Funding II, LLC, et al.
Violation: Between March 2011 and December 2013, AGF II and Johnson falsely claimed that AGF II’s financial statements were being audited each year. AGF II made misrepresentations in its offering documents about its management and concealed details about deteriorating loan values that could imperil full payment of the promised returns to investors… Read More

Penalties: N/A
Respondent: Judgment – Johnson – American Growth Funding II, LLC, et al.
Violation: Between March 2011 and December 2013, AGF II and Johnson falsely claimed that AGF II’s financial statements were being audited each year. AGF II made misrepresentations in its offering documents about its management and concealed details about deteriorating loan values that could imperil full payment of the promised returns to investors… Read More

Financial Enforcement Actions | Week of Jan 20 to Jan 25