Financial Enforcement Actions | Week of March 07 to March 13

Enforcement Report Mar 7 - 13

Enforcement Report Mar 07-13

CFPB

2 Enforcement Documents

$0.00 in Fines

Penalties: N/A
Respondent: Fifth Third Bank, National Association
Violation: Fifth Third’s conduct, described above, violated and, where uncorrected, continues to violate the CFPA, TILA, TISA, and their implementing regulations... Read More

FINRA

4 Enforcement Documents

$57,500.00 in Fines

Penalties: $7,500.00
Respondent: William Blake McGowan
Violation: In July 2017, McGowan participated in a private securities transaction without providing prior written notice to his firm, in violation of FINRA Rules 3280 and 2010... Read More

Penalties: N/A
Respondent: David Hall
Violation: Hall refused to provide documents and information requested pursuant to FINRA Rule 8210. As a result, he violated FINRA Rules 8210 and 2010... Read More

Penalties: N/A
Respondent: David R. Oakes
Violation: Between August 2016 and December 2017 (the "Relevant Period"), David Oakes structured three cash deposits and six cash withdrawals totaling $61,500 for the purpose of attempting to evade federal reporting requirements... Read More

Penalties: $50,000.00
Respondent: GFI Securities LLC
Violation: From November 2014 to August 2018 (the "Relevant Period"), GFI failed to establish, document, and maintain a system of risk management controls and supervisory procedures reasonably designed to manage the financial, regulatory, and other risks of this business activity... Read More

FTC

4 Enforcement Documents

$6,630,678.00 in Fines

Penalties: N/A
Respondent: American Immigration Center
Violation: American Immigration Center falsely implied that its websites were affiliated with the U.S. government and collected money from people who thought they were paying government application fees... Read More

Penalties: $6,630,678.00
Respondent: BoostMyScore LLC
Violation: Misled consumers with promises to “drastically and immediately” improve credit scores and increase access to lower rates on mortgages... Read More

SEC

17 Enforcement Documents

$22,812,357.99 in Fines

Penalties: $16,246,196.99
Respondent: ICOBox
Violation: The court found that the defendants illegally offered and sold ICOS tokens, which the court concluded were securities subject to the registration requirements of the federal securities laws. The court also found that the defendants acted as unregistered brokers. The court permanently enjoined ICOBox and Evdokimov from violating the securities registration provisions of Sections 5(a) and 5(c) of the Securities Act of 1933 and the broker registration provisions of Section 15(a) of the Securities Exchange Act of 1934... Read More

Penalties: N/A
Respondent: Bruce C. Worthington
Violation: The Securities and Exchange Commission (“Commission”) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Section 203(f) of the Investment Advisers Act of 1940 (“Advisers Act”) against Bruce C. Worthington (“Respondent” or “Worthington”)... Read More

Penalties: N/A
Respondent: Travis, Dwayne
Violation: Licensee failed to comply with certain provisions of the Illinois Income Tax Act (35 ILCS 5/101 et seq.) by having an unpaid Individual Income Tax liability, failing to file tax return, and failing to pay tax liabilities for such unfiled returns, if any, and Revenue referred the Licensee for further action against his insurance producer license in accordance with Section 917 of the Illinois Income Tax Act (35 ILCS 5/917) and applicable provisions of the Illinois Insurance Code (215 ILCS 5/1 et seq.)... Read More

Penalties: N/A
Respondent: Wells Fargo & Company
Violation: The Commission issued the “Omnibus Order Directing the Appointment of Tax Administrator in Administrative Proceedings that Establish Distribution Funds” (“Omnibus Order”),1 authorizing the Secretary to issue orders for calendar years 2019-2021 appointing, upon request by the Commission staff, Miller Kaplan Arase LLP (“Miller Kaplan”), a certified public accounting firm, with one of their offices located in San Fransciso, California, as tax administrator (“Tax Administrator”) in administrative proceedings where the distribution fund may incur tax-related obligations as a Qualified Settlement Fund (“QSF”) under the Department of the Treasury Regulation § 1.468B-1(c)... Read More

Penalties: N/A
Respondent: Dennis M. Farrah
Violation: In particular, according to the Stipulation for Consent Order filed by CDS, between March and April of 2017, while employed as a sales representative at a registered broker-dealer, Farrah solicited and facilitated the sale of securities of a purported real estate investment company without the knowledge or written approval of his employer... Read More

Penalties: N/A
Respondent: Yonathan Chanoch Shields
Violation: The discipline hearing concerns allegations that Mr. Shields: (a) failed to use due diligence to learn and remain informed of the essential facts relative to certain clients, contrary to Dealer Member Rule 1300.1(a); and (b) failed to ensure that recommendations were suitable for certain clients, contrary to Dealer Member Rule 1300.1(q)... Read More

Penalties: $30,000.00
Respondent: Stacey Beane, Justin Deckert and Travis Laska
Violation: Defendants Stacey L. Beane (“Beane”), Justin N. Deckert (“Deckert”) and Travis Laska (“Laska”) assisted Stephen C. Peters (“Peters”) in his efforts to hide from the Commissiona Ponzi scheme that Peters perpetrated through three entities he controls: VisionQuest Wealth
Management, LLC (“VQ Management”)—an investment adviser in Raleigh, North Carolina that was registered with the Commission; VisionQuest Capital, LLC (“VQ Capital”), and VQ Wealth, LLC (“VQ Wealth”)(collectively, the VQ Entities)... Read More

Penalties: N/A
Respondent: Bradley C. Reifler, et. al.
Violation: Reifler diverted the $6 million to support real-estate development projects in which he had an interest and to acquire a $34 million portfolio of reinsurance trust assets in North Carolina... Read More

Penalties: $1,501,270.00
Respondent: PTG Capital Partners LTD
Violation: Defendants' coordinated attempts to fraudulently manipulate the securities in three issuers, Avon Products, Inc., Tower Group International, Ltd., and Rocky Mountain Chocolate Factory, Inc., through filing false tender offers on the SEC's EDGAR database and issuing a fraudulent press release... Read More

Penalties: $3,483,141.00
Respondent: Barry Honig, et al.
Violation: A group of South Florida-based microcap fraudsters led by Barry Honig, who entered into a bifurcated settlement with the SEC in July 2019, along with his close associates O'Rourke and Stetson, and longtime coinvestor Brauser, manipulated the stock of three public companies in classic pump-and-dump schemes... Read More

Penalties: $1,551,750.00
Respondent: E. Herbert Hafen
Violation: Defrauding his advisory clients by promoting a fraudulent investment opportunity... Read More

Penalties: N/A
Respondent: Kinetic Investment Group, LLC, et al.
Violation: Kinetic Group and Williams fraudulently raised millions of dollars by making material misrepresentations to investors who they solicited to invest in Kinetic Funds I, LLC, a purported hedge fund that they managed... Read More

X