248 Enforcement Actions in the U.S. over past 30 days

-

FINRA enforcements decreased 70% over the past 30 days

-

CME issued enforcements: $1,241,754.92 over the past 30 days

-

161 Final Rules go into effect in the next 30 days

-

30 Mortgage Lending docs published in the last 7 days

-

1460 docs with 2637 extracted obligations from the last 7 days

-

68 new Proposed and Final Rules were published in the past 7 days

-

2526 new docs in pro.compliance.ai within the last 7 days

-

Considering RCM Solutions?  Here’s an RFP to get started.

-

Enforcement Report June 26 - July 02

FTC

18 Enforcement Documents

$3,000,000.00 in Fines

Penalties: N/A
Respondent: Broadcom Incorporated
Violation: The consent agreement contains a proposed order addressing allegations in the proposed complaint that (1) with regard to certain components used in CPE devices, Broadcom unlawfully maintained a monopoly and unreasonably restrained trade through exclusive dealing and related conduct, and (2) with regard to certain other components used in CPE devices, Broadcom unreasonably restrained trade through cross-product conditioning, all in violation of Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45… Read More

Penalties: $3,000,000.00
Respondent: KuuHuub Inc., Kuu Hubb OY; Recolor OY
Violation: The Complaint charges that Defendants violated the COPPA Rule and the FTC Act by failing to provide sufficient notice on its online service of the information it Collects, or is Collected on its behalf, online from Children, how it uses such information, its Disclosure practices, and all other required content; failing to provide direct notice to Parents of its information practices; and failing to Obtain Verifiable Parental Consent prior to Collecting, using, and/or Disclosing Personal Information from Children… Read More

Penalties: N/A
Respondent: FRANK ROMERO d/b/a Trend Deploy; Trendeploy; trendeploy; trendeploy.com; Frank Romero Advertising; Uvenux
Violation: Defendant willfully engaged in unlawful acts or practices by: (1) advertising N95 respirators but not delivering N95 respirators to consumers, (2) posting and distributing counterfeit government certifications to consumers, and (3) offering shipping and delivery timeframes without a reasonable basis. Finally, Defendant’s websites are still operational, and Defendant retains the means, ability, and incentive to continue his unlawful conduct in the PPE business… Read More

CFPB

2 Enforcement Documents

$38,707,854.00 in Fines

Penalties: $38,707,854.00
Respondent: Richard W. Burnham; Sang Yi; Katherine Ray Burnham & Burlington Financial Group, LLC
Violation: The Complaint alleges violations of (1) the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101–6108, and the Telemarketing Sales Rule (TSR), 16 C.F.R. pt. 310; (2) the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C. §§ 5531(a), 5536(a)(1); and (3) the Fair Business Practices Act (FBPA), O.C.G.A. §§ 10-1-390 et seq., in connection with the marketing, sale, and provision of debt-relief and credit-repair services… Read More

FINRA

13 Enforcement Documents

$12,039,723.00 in Fines

Penalties: $530,161.39
Respondent: Sanctuary Securities, Inc., (formerly known as David A. Noyes & Company)
Violation: From January 1, 2014 through December 31, 2018, Respondent failed to establish and maintain a supervisory system, including written procedures, reasonably designed to achieve compliance with FINRA Rule 2111 in relation to the solicited sales of inverse and leveraged exchange traded funds (collectively Non-Traditional ETFs or NT-ETFs) in that the firm’s supervisory system was not sufficiently tailored to address the unique features and risks of these products… Read More

Penalties: $5,000.00
Respondent: Fernando Luis Monllor Arzola
Violation: In March 2018, in two instances, Monllor used a pre-signed Letter of Authorization (LOA) from a customer to transfer assets among the customer’s accounts. By this conduct, Monllor violated FINRA Rule 2010. In addition, Monllor violated FINRA Rules 4511 and 2010 by causing Popular to create and 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: $10,000.00
Respondent: Gary M. Bowman
Violation: From February 2013 through December 2017, Bowman engaged in an unsuitable pattern of short-term trading of Unit Investment Trusts in customer accounts. Based on the foregoing, Bowman violated FINRA Rules 2111 and 2010… Read More

Penalties: $5,000.00
Respondent: Lawrence Moskowitz
Violation: From November 2012 through December 2018, while associated with the firm, Moskowitz engaged in two outside business activities – one that he requested approval and was prohibited from engaging in, and another that he failed to disclose for six years. In addition, during this time period, Moskowitz falsely attested he complied with the firm’s rules regarding outside businesses in annual compliance questionnaires… Read More

Penalties: $5,000.00
Respondent: Scott R. Mathews
Violation: Between March 2017 and August 2018, Pearl recommended the purchase of leveraged and inverse exchange traded funds (collectively Non-Traditional ETFs or NT-ETFs) to four customers without having a sufficient understanding of the risks and features associated with these products and thereby failing to have a reasonable basis to make these recommendations. As a result, Pearl violated FINRA Rules 2111 and 2010… Read More

Penalties: N/A
Respondent: Juan M. Ceja
Violation: Ceja refused to cooperate with FINRA’s May 20, 2021 request for documents and information issued pursuant to FINRA Rule 8210. By virtue of this misconduct, Ceja violates FINRA Rules 8210 and 2010… Read More

Penalties: N/A
Respondent: Christopher G. Orlando
Violation: From October 2015 through December 2018, while registered through Legend and then WCM, Orlando excessively traded 13 accounts of 12 customers in violation of FINRA Rules 2111 and 2010… Read More

Penalties: N/A
Respondent: Michael Thomas Carl
Violation: In November 2018 and March 2019, Carl submitted altered invoices to Schwab that caused it to pay expenses in excess of $19,000 on behalf of two of the firm’s advisory clients, which were not entitled to have those expenses paid… Read More

Penalties: $2,466.10
Respondent: Matthew R. Logan
Violation: Respondent Matthew R. Logan is barred from associating with any FINRA member in any capacity for using an impostor to take his FINRA Regulatory Element continuing education training and three non-FINRA continuing education courses… Read More

Penalties: $69,598,445.20
Respondent: Robinhood Financial LLC
Violation: Robinhood violated FINRA Rule 2010, which prohibits FINRA member firms from making misrepresentations to customers. Robinhood’s negligent dissemination of false and misleading information to its customers separately violated FINRA Rules 2210 and 2220, which set forth content standards for firms’ communications with customers. Because Robinhood failed to have a reasonably designed supervisory system and procedures to achieve compliance with FINRA rules and applicable securities laws requiring that communications with customers be truthful and not misleading, it also violated FINRA Rules 3110 and 2010… Read More

Penalties: $12,653.21
Respondent: Martin J. Petela
Violation: Between May 2018 and March 2019, Petela excessively and unsuitably traded one customer’s account, in violation of FINRA Rules 2111 and 2010… Read More

Penalties: N/A
Respondent: Matthew Alexander Perry
Violation: After initially cooperating with FINRA’s investigation, in May and June 2021, Perry declined to respond to requests sent pursuant to FINRA Rule 8210 for documents and information and for on-the-record testimony. Perry thereby violated FINRA Rules 8210 and 2010… Read More

Penalties: N/A
Respondent: Gregory Antonius Lewis & StockKings Capital LLC
Violation: From November 2016 to December 2018, Lewis and the Firm created and transmitted investment materials that made false, exaggerated, misleading, promissory, and unwarranted claims about StockKings Holdings, Inc. Lewis and StockKings: falsely claimed they had received a patent; overstated the progress StockKings had made toward bringing its platform to market; falsely claimed the StockKings.com platform was stalled due to a FINRA materiality consultation; and made baseless and unwarranted valuation claims and revenue projections… Read More

SEC

40 Enforcement Documents

$123,420,868.00 in Fines

Penalties: $13,560,252.00
Respondent: Gerardo De Nicolas Gutierrez; Carlos Javier Moctezuma Velasco; Ramon Lafarga Batiz; Noe Corrales Reyes
Violation: The Securities and Exchange Commission (the “SEC” or “Commission”) having filed a First Amended Complaint, Defendant Gerardo de Nicolás Gutiérrez (“Defendant”) having been duly served a summons and the First Amended Complaint, but failed to answer or otherwise defend, the Clerk of the Court having entered a default against the Defendant, and the SEC having duly noticed its Motion for Default Judgment against the Defendant under Rule 55(b)(2) of the Federal Rules of Civil Procedure and Defendant having failed to oppose said motion and failed to appear in court for the hearing on the same… Read More

Penalties: $14,040,252.00
Respondent: Gerardo de Nicolás; Carlos Moctezuma; Ramón Lafarga; Noe Corrales
Violation: The SEC’s complaint against Homex’s former Chief Executive Officer, Gerardo de Nicolás, former Chief Financial Officer, Carlos Moctezuma, former Controller, Ramón Lafarga, and former manager in the company’s operations department, Noe Corrales, alleged that Homex’s annual reports for 2010 through 2012 portrayed the company as productive and financially sound, and that de Nicolás and Moctezuma certified their accuracy, when in fact the defendants knew Homex was in a dire financial state… Read More

Penalties: N/A
Respondent: Roger Nils-Jonas Karlsson
Violation: The SEC’s complaint, filed on September 29, 2020, alleged that from November 2012 to June 2019, Karlsson, through his entity, Eastern Metal Securities, raised millions from over 2,000 retail investors located in nearly every state in the United States, as well as in over 45 countries around the world. From December 2017 through June 2019 alone, investors allegedly sent more than $3.5 million to Eastern Metal Securities. According to the complaint, Karlsson solicited the investors, through the Eastern Metal Securities website, by falsely claiming, among other things, that the investment – a “Pre Funded Reversed Pension Plan” – was run by award-winning economists and had no risk of loss. The SEC alleged that Karlsson misappropriated at least $1.5 million of investor funds to purchase real estate in Thailand and to pay other personal expenses… Read More

Penalties: N/A
Respondent: Lambert Vander Tuig; Ben Schactschneider & Capital Development Resources f/k/a Biosynetics; Biosynetics Management; Galileo Labs, Inc
Violation: According to the SEC’s complaint, from January 2018 until the present, Ben Schachtschneider and securities fraud recidivist Lambert Vander Tuig defrauded investors by using false statements and other deceptive conduct, such as aliases, to sell purported private placement investments in Biosynetics… Read More

Penalties: $4,235,961.90
Respondent: Michael B. Carter
Violation: According to the SEC’s complaint, filed on July 20, 2020, Carter, while employed at a major financial institution, misappropriated more than $6 million from elderly and other investors, primarily by making unauthorized cash wire transfers from their accounts. Carter allegedly used the money to support his lifestyle, including payments for a large home mortgage and a luxury car, and to fund cash withdrawal requests made by customers whose accounts Carter had previously depleted… Read More

Penalties: N/A
Respondent: Jeremy McAlpine; Zachary Matar; Patrick O’Hara & Dropil Inc.
Violation: According to the SEC’s complaint, which was filed in April 2020, from at least January to March 2018, Dropil sold DROP tokens, claiming that investor funds received for those tokens would be pooled to trade various digital assets by a “trading bot” called Dex. Instead of using investor money to trade with Dex, however, Dropil allegedly diverted the funds raised to other projects and to the founders’ personal digital asset and bank accounts… Read More

Penalties: $238,276.00
Respondent: Scott S. Fraser; Nathan Yeung & Contrarian Press, LLC
Violation: According to the SEC’s complaint, filed in September 2016, Scott Fraser, who was a major shareholder in Las Vegas-based penny stock issuer Empowered Products Inc., also ran Contrarian Press, a newsletter publishing business. Fraser and Contrarian Press allegedly coordinated three promotional campaigns touting Empowered Products’ stock while concealing their involvement… Read More

Penalties: N/A
Respondent: DeAndre P. Sears
Violation: The Commission’s Complaint alleged that, among other things, from at least 2014 to February 2020, Sears, through Picasso, sold the Funds’ securities. None of the Funds’ securities offerings were registered with the Commission… Read More

Penalties: $817,438.00
Respondent: Shawn F. Hackman
Violation: In 2019, Commission staff became aware of evidence that, from at least 2013, Hackman may have been violating the 2002 Order by drafting and providing legal advice regarding documents that were filed with the Commission by a number of public companies, and by directly communicating with Commission staff on behalf of his clients about SEC filings… Read More

Penalties: N/A
Respondent: Spotlight Innovation Inc; Tempus Applied Solutions Holdings, Inc
Violation: STLT has failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder because it has not filed any periodic reports with the Commission since the period ended June 30, 2018… Read More

Penalties: $51,700.00
Respondent: Mounir N. Gad
Violation: This matter involves insider trading by Mounir N. Gad and Nathan E. Guido. Gad worked at a Northern California-based bank (the “Bank”) in the Bank’s group that assisted private equity firms in financing acquisitions of other companies. Gad tipped Guido on three occasions in 2015 and 2016 using material, nonpublic information about upcoming acquisitions, two of which involved tender offers, that Gad learned about in the course of his employment. Guido then bought stock in the target companies based on those tips, and sold after the acquisitions were announced, resulting in illegal gains of $51,700. Guido shared $11,000 of these gains with Gad… Read More

Penalties: $40,700.00
Respondent: Nathan E. Guido
Violation: This matter involves insider trading by Mounir N. Gad and Nathan E. Guido. Gad worked at a Northern California-based bank (the “Bank”) in the Bank’s group that assisted private equity firms in financing acquisitions of other companies. Gad tipped Guido on three occasions in 2015 and 2016 using material, nonpublic information about upcoming acquisitions, two of which involved tender offers, that Gad learned about in the course of his employment. Guido then bought stock in the target companies based on those tips, and sold after the acquisitions were announced, resulting in illegal gains of $51,700. Guido shared $11,000 of these gains with Gad… Read More

Penalties: $1,750,000.00
Respondent: Securities America Advisors Inc.
Violation: This matter concerns SAA’s failure to implement policies and procedures reasonably designed to prevent the misappropriation of funds from investment advisory client accounts. From November 2014 to March 2018 (the “Relevant Period”), SAA failed to implement policies and procedures for the review of automatically generated surveillance alerts after client disbursements had occurred. SAA also failed to implement reasonably designed policies and procedures for reviewing client disbursement requests for possible misappropriation before the disbursements occurred. As a result of these failures, Hector May (“May”), the owner of an independent state-registered investment adviser whose clients participated in certain SAA advisory programs, misappropriated, without SAA’s detection, approximately $8 million from the SAA advisory accounts of at least fifteen SAA advisory clients… Read More

Penalties: $32,636.76
Respondent: Ronald Phillips
Violation: The SEC’s complaint, filed on September 28, 2020, alleged that Phillips, in the days and weeks after he resigned as an officer of Royal Energy in January 2018, engaged in five separate matched trades in the securities of Royal Energy through which he sold a portion of his personal holdings of the stock… Read More

Penalties: N/A
Respondent: Matthew J. Skinner & Empire West Equity, Inc; Bayside Equity, LP; Longacre Estates, LP; Freedom Equity Fund LLC; and Simple Growth, LLC
Violation: The SEC’s complaint alleges that Skinner, who touted himself to investors as a successful real estate investor and dealmaker, made multiple misrepresentations to investors and misappropriated millions of dollars of investor funds. The SEC contends that Skinner told investors their money would be used to finance specific real estate projects or investments, projecting and, in some cases, guaranteeing double-digit annual returns… Read More

Penalties: N/A
Respondent: Clement Borkowski; Sean Hawkins; Joseph Schif & SkiHawk Capital Partners, LLC; The Convergence Group, LLC
Violation: According to the SEC’s complaint, filed in the U.S. District Court for the District of Colorado, the defendants violated the securities laws in connection with three private funds. First, from 2016 to present, Borkowski and Hawkins, through SkiHawk, allegedly caused a private fund, ASI Healthcare Capital Partners I, L.P., to engage in conflicted transactions that resulted in significant financial benefits to themselves without adequate disclosure or consent… Read More

Penalties: $43,651.82
Respondent: Reuben Robert Goldman & Two Triangle Consulting Group, LLC. d/b/a Goldman Small Cap Research
Violation: Between April 28, 2016 and March 2, 2021, Goldman used GSCR’s Twitter account (@GoldmanSmallCap) to publish twenty-nine sponsored promotional tweets that failed to disclose that GSCR had been compensated by the issuers to promote their securities. Specifically, these twenty-nine tweets promoted the securities of issuers that had paid GSCR for promotional services, but did not disclose that they were paid promotions or identify the amount of GSCR’s compensation… Read More

Penalties: N/A
Respondent: Harold P. Gewerter
Violation: From at least 2007 through early 2017, Gewerter employed as a “paralegal” Shawn Hackman—a disbarred former attorney who was suspended from appearing or practicing before the Commission as an attorney on September 10, 2002… Read More

Penalties: N/A
Respondent: Elaine A. Dowling
Violation: Dowling knowingly or recklessly permitted Hackman to appear and practice before the Commission as an attorney, in violation of his suspension under Rule 102(e), by allowing him to: (a) draft documents, in whole or in part, that were filed with the Commission on behalf of EAD Law clients and provide legal advice on issues arising under the federal securities laws relating to such documents; and (b) communicate directly with the Commission’s staff regarding certain filings that he had drafted, in whole or in part, that had been filed with the Commission on behalf of EAD Law clients… Read More

Penalties: N/A
Respondent: Gregory David Paris & Barrington Asset Management, Inc
Violation: The SEC’s complaint, filed in the United States District Court for the Northern District of Illinois, alleges that over a four year period Paris reaped more than $630,000 in illgotten gains at his clients’ expense by cherry-picking trades. Paris allegedly traded securities in Barrington’s omnibus account and delayed allocating the securities to specific client accounts until he had observed the securities’ performance over the course of the trading day… Read More

Penalties: N/A
Respondent: John Robert Jones, Jr
Violation: The SEC’s complaint, filed in the U.S. District Court for the Northern District of Georgia, alleges that Jones induced at least 24 investors to invest at least $5.1 million in the two funds by falsely promising growth and safety with limited risk… Read More

Penalties: $2,750,000.00
Respondent: Neovest Inc.
Violation: From March 1996 through December 2006, Neovest was registered as a brokerdealer with the Commission and the Financial Industry Regulatory Authority (“FINRA”). After JPMorgan Chase & Co. (“JPMorgan Chase”) acquired Neovest in September 2005, Neovest deregistered with the Commission and FINRA in December 2006. Nonetheless, Neovest continued to operate as a broker-dealer by engaging in the business of effecting securities transactions for others through the receipt of transaction-based compensation for its OEMS services and its solicitation of customers for those services. By engaging in these activities without being registered as a broker-dealer with the Commission, Neovest violated Section 15(a) of the Exchange Act… Read More

Penalties: $85,320,000.00
Respondent: Petróleo Brasilerio, S.A.
Violation: As a result of the Corrupt Executives’ failure to implement Petrobras’ internal controls, their exploitation of deficiencies in these controls, and their submission of false certifications in connection with Petrobras’ internal process for preparing its Commission filings, the Commission found that Petrobras made material misstatements and omissions in filings made with the Commission and in documents relating to a public offering in 2010… Read More

Penalties: $60,000.00
Respondent: Howard Davner
Violation: These proceedings arise from Davner’s role as the CEO of the General Partner of a Private Fund from March 2016 to January 2018 (the “Relevant Period”). During the Relevant Period, Davner solicited and sold investments in Private Fund and its offshore feeder fund through materially false and misleading statements, raising over $11 million from 12 investors. The misconduct stems from three categories of false and misleading disclosures made to investors and prospective investors regarding (1) the management team of General Partner, (2) General Partner’s and its parent company’s abilities to monitor Private Fund’s investments in real time, and (3) the selection and due diligence of Private Fund’s investments… Read More

X