Financial Enforcement Actions | Week of June 30 to July 5

Financial Enforcement Actions | Week of June 30 to July 05

Financial Enforcement Actions | Week of June 30 to July 05

Penalties: N/A
Respondent: Craig Mitchison
Violation: On the basis of the facts and matters and conclusions described in the Warning Notice, and in the Decision Notice, it appears to the Authority that Mr. Mitchison is failing to satisfy the suitability Threshold Condition, in that the Authority is not satisfied that Mr. Mitchison is a fit and proper person having regard to all the circumstances, including whether Mr. Mitchison managed his business in such a way as to ensure that his affairs were conducted in a sound and prudent manner… Read More

Penalties: N/A
Respondent: Carnwood Investments Limited
Violation: CIL has failed to manage its business in such a way as to ensure that its affairs are conducted in a sound and prudent manner, that it is not a fit and proper person, and that it is therefore failing to satisfy the Threshold Conditions in relation to the regulated activities for which CIL was granted a Part 4A permission… Read More

Penalties: N/A
Respondent: Grandison Garage Ltd
Violation: GGL has failed to manage its business in such a way as to ensure that its affairs are conducted in a sound and prudent manner, that it is not a fit and proper person, and that it is therefore failing to satisfy the Threshold Conditions in relation to the regulated activities for which GGL was granted a Part 4A permission… Read More

Penalties: N/A
Respondent: Redacted
Violation: Claimant 2’s failed to submit a timely response contesting the preliminary determination constituted a failure to exhaust administrative remedies… Read More

FINRA

15 Enforcement Documents

$1,100,380.44 in Fines

Penalties: N/A
Respondent: Tina Marie Martinez
Violation: Respondent refused to provide testimony requested pursuant to FINRA Rule 8210 on the scheduled date or at any time. By virtue of this misconduct, Respondent violates FINRA Rules 8210 and 2010… Read More

Penalties: N/A
Respondent: Wilfredo Felix ; Primex Prime Electronic Execution, Inc. d/b/a Primex
Violation: Felix falsified Primex’s books and records by misclassifying hundreds of thousands of dollars of his personal expenses as business expenses of the firm on Primex’s general ledger and in other of the firm’s books and records for the years 2013, 2014 and 2015. By falsifying the firm’s books and records, Felix violated FINRA Rule 2010… Read More

Penalties: N/A
Respondent: James T. Booth
Violation: Between at least approximately April 2014 and May 2019 (the “Relevant Period”), while associated with FINRA member firms, Booth converted customer funds in violation of FINRA Rules 2150(a) and 2010… Read More

Penalties: $883,296.44
Respondent: Summit Brokerage Services, Inc.
Violation: From January 2012 through March 2017, Summit failed to establish and maintain a supervisory system, and failed to enforce written supervisory procedures (“WSPs”), that were reasonably designed to achieve compliance with FINRA’s suitability rule as it pertains to excessive trading… Read More

Penalties: N/A
Respondent: Brenda Smith
Violation: Smith failed to respond to a written request for documents and information issued pursuant to FINRA Rule 8210. As a result, Smith violated FINRA Rules 8210 and 2010… Read More

Penalties: $100,000.00
Respondent: CV Brokerage, Inc.
Violation: From February 2016 through June 2019 (the “Relevant Period”), CV Brokerage failed to establish and maintain a supervisory system, and failed to establish, maintain, and enforce written supervisory procedures (“WSPs”), reasonably designed to achieve compliance with applicable FINRA rules regarding the participation of Firm-registered representatives in private securities transactions (“PSTs”). As a result, the Firm violated FINRA Rules 3110(a) and (b), 3280, and 2010… Read More

Penalties: N/A
Respondent: David Philip Antypas
Violation: During the time period July 2014 to December 2017 (the “Relevant Period”), Antypas recommended that an elderly customer name his wife and his sister as beneficiaries on the customer’s account, in contravention of, and in an effort to circumvent, Firm policies. By virtue of this conduct, Antypas violated FINRA Rule 2010… Read More

Penalties: $5,000.00
Respondent: Ricardo de la Garza Emerich
Violation: From January 2014 through April 2016, while associated with Titleist, de la Garza sent and received business-related email with customers through an email address that was not captured by his member firm and, in addition, authorized his office assistant to send and receive business-related email with customers through an email address that was not capture by his member firm. By virtue of the foregoing, de la Garza violated FINRA Rules 4511 and 2010 by causing his member firm to fail to preserve books and records… Read More

Penalties: $5,000.00
Respondent: Scott Mason
Violation: From April 2015 to August 2016 (the “Relevant Period”), Mason violated F1NRA Rules 3240 and 2010 by (i) obtaining six loans totaling approximately $108,360 from his elderly Firm client without providing prior notice to, and receiving written approval from, LPL… Read More

Penalties: $90,000.00
Respondent: Planmember Securities Corporation
Violation: At times between July 2012 and June 2016, Planmember failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures (“WSPs”), reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable NASD and FINRA rules, with respect to four aspects of its business… Read More

Penalties: N/A
Respondent: Jeffrey Alan Blutstein
Violation: Blutstein refused to provide documents and information requested by FINRA staff pursuant to FINRA Rule 8210. Through this conduct, Blutstein violated FINRA Rules 8210 and 2010… Read More

Penalties: $17,084.00
Respondent: William Mark Heiden
Violation: Between February 2015 and June 2015, Respondent William Mark Heiden engaged in unauthorized trading in the accounts of two elderly customers in violation of FINRA Rule 2010… Read More

SEC

14 Enforcement Documents

$2,714,500.03 in Fines

Penalties: N/A
Respondent: Laverne C. Moter
Violation: The securities fraud counts to which Moter pleaded guilty were premised on his operation of a fraudulent scheme between May 2009 and December 2013, in which he misappropriated investor funds for his personal use rather than investing them in undeveloped real estate as represented to investors… Read More

Penalties: $27,590.45
Respondent: Thomas Chang
Violation: This matter arises from violations of the auditor independence rules caused by Chang between April 2016 and August 2018. These violations stem from a business relationship between Chang’s auditing firm, KCCW Accountancy Corp. (“KCCW”), and Entity A, a company that created and maintained an inventory of public companies that it made available to its customers… Read More

Penalties: $173,436.00
Respondent: GT Media, Inc.
Violation: GTM sold its stock to both accredited and non-accredited investors and failed to take reasonable steps to verify the accredited status of the investors.GTM did not provide any of the investors with an offering memorandum, financial statements, or other financial information about GTM before they invested in GTM common stock. In fact, GTM did not have audited financial statements during the relevant time period… Read More

Penalties: $732,409.00
Respondent: Gregory E. Webb, et al.
Violation: Webb and InfrAegis made false and misleading claims about the company’s commercial success and the existence of contracts for the installation of InfrAegis’ products… Read More

Penalties: $1,322,971.00
Respondent: Fieldstone Financial Management Group, LLC; Kristofor R. Behn
Violation: From 2014 to early 2016, on Behn’s recommendation, approximately 40 of Behn’s advisory clients invested more than $7 million in securities issued by Aequitas Commercial Finance, LLC (“ACF”), one of numerous entities affiliated with the Aequitas enterprise, the ultimate parent of which is Aequitas Management, LLC (collectively referred to herein as “Aequitas”). Behn and Fieldstone did not disclose to the clients that Aequitas had provided Fieldstone with a $1.5 million loan and access to a $2 million line of credit under terms that created an incentive for Behn and Fieldstone to recommend the Aequitas investments… Read More

Penalties: $24,748.58
Respondent: Tory J. R. Schalkle
Violation: From December 4, 2017, through January 12, 2018, Consulting Company A was jointly engaged by two publicly traded companies, Essendant, Inc. (“Essendant”) and Genuine Parts Company (“Genuine Parts”), to consult on a potential merger between the two companies ( “Deal”). Schalkle was a manager at Consulting Company A and was a member of the team assigned to conduct due diligence on the Deal… Read More

Penalties: N/A
Respondent: Jonathan E. Shoucair
Violation: An unregistered and fraudulent offering of securities by Jersey Consulting LLC and its principal, convicted felon Marc Andrew Tager, effected through the use of paid and unregistered solicitors, including Respondent. From September 2014 through February 2018, Jersey and Tager, with the assistance of Respondent and the other solicitors, raised at least $8 million from over 100 investors via the unregistered offer and sale of Jersey securities referred to as “Royalty Interests.” Jersey paid its solicitors transaction-based compensation, ranging from 10%-35% of investment proceeds, which Jersey and the solicitors, including Respondent, failed to disclose to investors… Read More

Penalties: N/A
Respondent: Kenneth S. Gross
Violation: An unregistered and fraudulent offering of securities by Jersey Consulting LLC and its principal, convicted felon Marc Andrew Tager, effected through the use of paid and unregistered solicitors, including Respondent. From September 2014 through February 2018, Jersey and Tager, with the assistance of Respondent and the other solicitors, raised at least $8 million from over 100 investors via the unregistered offer and sale of Jersey securities referred to as “Royalty Interests.” Jersey paid its solicitors transaction-based compensation, ranging from 10%-35% of investment proceeds, which Jersey and the solicitors, including Respondent, failed to disclose to investors… Read More

Penalties: N/A
Respondent: Edward Dean Goss
Violation: An unregistered and fraudulent offering of securities by Jersey Consulting LLC and its principal, convicted felon Marc Andrew Tager, effected through the use of paid and unregistered solicitors, including Respondent. From September 2014 through February 2018, Jersey and Tager, with the assistance of Respondent and the other solicitors, raised at least $8 million from over 100 investors via the unregistered offer and sale of Jersey securities referred to as “Royalty Interests.” Jersey paid its solicitors transaction-based compensation, ranging from 10%-35% of investment proceeds, which Jersey and the solicitors, including Respondent, failed to disclose to investors… Read More

Penalties: $184,767.00
Respondent: The Parrish Group, LLC; Daryl M. Davis
Violation: Parrish Group and Davis repeatedly misled prospective clients about, among other things, Parrish Group’s assets under management, its clients, the number and identity of its employees, and its registration status with the SEC. Through their conduct, Parrish Group and Davis violated Sections 206(1) and 206(2) of the Advisers Act… Read More

Penalties: $248,578.00
Respondent: Daniel H. Glick, et al.
Violation: Glick and FMS provided clients with false account statements that hid Glick’s improper use of client funds to pay personal expenses and his improper transfers of funds to Slagter and another individual, Edward Forte… Read More

Penalties: N/A
Respondent: James B. Catledge
Violation: Fall of 2004 until early 2009, Catledge solicited investments, through the marketing entity known as Net Worth Solutions, involving the offer and sale of over $163 million of investment contracts in unregistered transactions to approximately 1,200 investors… Read More

Penalties: N/A
Respondent: Alexander Charles White
Violation: From approximately October 2012 through approximately January 2016, White solicited investors and managed other sales agents who solicited and raised money from investors in unregistered, fraudulent securities offerings conducted by Aegis and 7S. Both Aegis and 7S offered and sold unregistered securities in the form of “joint venture units” in oil and gas development projects located in Texas. White, through his work at Aegis and 7S, received more than $7 million in commissions, which he divided between himself and sales agents under his management… Read More

Penalties: N/A
Respondent: Pedro L. Gonzalez-Seijo
Violation: Between May 2013 and June 2016, Gonzalez-Seijo converted client funds by depositing into his bank account for his own use (a) funds he received from clients intended for deposit into their insurance accounts, (b) funds he obtained by making unauthorized withdrawals from client accounts, and (c) funds the clients had authorized be withdrawn from their accounts for purpose of transferring the funds or investing the funds in a different product. Gonzalez-Seijo converted a net total of $480,813.15 from five victims… Read More

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