Financial Enforcement Actions | Week of May 12 to May 17

Financial Enforcement Actions | Week of May 12 to May 17

Financial Enforcement Actions | Week of May 12 to May 17

Penalties: N/A
Respondent: Forster & Garbus, LLP
Violation: Forster & Garbus falsely represented to consumers that the Collection Suits were from attorneys when, in fact, attorneys were not meaningfully involved in preparing or filing the suits, in violation of § 807(3) and 807(10) of the FDCPA, 15 U.S.C. § 1692e(3)… Read More

Penalties: N/A
Respondent: Freddy David
Violation: Mr David Obtained a money transfer by deception contrary to section 15A of the Theft Act 1968 in that between 1 July 2003 and 14 January 2007 he dishonestly obtained for himself money transfers in the sum of £1,493,477 by deception… Read More

FINRA

11 Enforcement Documents

$18,777.14 in Fines

Penalties: N/A
Respondent: Oriental Financial Services Corp.
Violation: In August and September 2015, Oriental included language conditioning the settlement of two arbitration proceedings on the customers’ agreements to consent to, and not to oppose, expungement of their claims from the Central Registration Depository System (the “CRD System”). As a result, Oriental violated FINRA Rules 2081 and 2010… Read More

Penalties: N/A
Respondent: Dean Harrison Grant
Violation: Grant, through his counsel, informed FINRA staff in writing that he would not produce information and documents requested pursuant to FINRA Rule 8210. As a result, Grant violates FINRA Rules 8210 and 2010… Read More

Penalties: N/A
Respondent: Woodbury Financial Services, Inc
Violation: From June 2013 until June 2015, Woodbury’s system for supervising additions to existing variable annuities was not reasonably designed to achieve compliance with applicable securities laws and FINRA rules, including those governing suitability—a problem that affected more than 3,800 transactions during this period. As a result, Woodbury violated NASD Rule 3010 ) and FINRA Rules 3110… Read More

Penalties: $7,500.00
Respondent: Stephen C. Carver
Violation: Carver violated Article V, Section 2(c) of FINRA’s By-Laws and FINRA Rules 1122 and 2010 by willfully failing to timely disclose three tax liens on his Form U4. He also violated FINRA Rule 2010 by falsely attesting to his Firm on an annual questionnaire that he made all required disclosures and that he complied with FINRA’s Form U4 disclosure requirements… Read More

Penalties: N/A
Respondent: Austin Wayne Morton
Violation: Morton converted funds belonging to GR on two different occasions—once in September 2016, and once in October 2016. Specifically, Enforcement claimed that Morton stole $20,000 from GR after GR withdrew, while in Morton’s presence, $22,000 in cash from his bank account in September 2016 and GR granted Morton an undocumented $6,000 loan in October 2016, but Morton stole an additional $16,000 after Morton wrote in the order instructions on an otherwise blank check signed by GR and cashed it for $22,000. Enforcement claimed these two acts constituted conversion, of $36,000, in violation of FINRA Rule 2010… Read More

Penalties: $6,277.14
Respondent: John Anthony Vedovino
Violation: Vedovino converted funds that belonged to Wells Fargo Bank, in violation of FINRA Rule 2010, and failed to testify and to comply substantially and promptly with FINRA requests to produce documents, in violation of FINRA Rules 8210 and 2010… Read More

Penalties: N/A
Respondent: Mark Lewton Hopkins
Violation: Hopkins refused to produce the documents and information requested pursuant to FINRA Rule 8210, in violation of FINRA Rules 8210 and 2010… Read More

Penalties: $5,000.00
Respondent: Stuart Jeffries Henley
Violation: Henley exercised discretion in a customer’s account without obtaining written authorization from the customer nor receiving acceptance of the account as discretionary by his member firm, in violation of NASD Conduct Rule 2510(6) and FINRA Rule 2010… Read More

Penalties: N/A
Respondent: William Justin Poynter
Violation: Poynter violated FINRA Rules 8210 and 2010 by failing to provide documents and information and by refusing to appear and provide testimony requested pursuant to FINRA Rule 8210… Read More

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

SEC

13 Enforcement Documents

$4,892,335.92 in Fines

Penalties: N/A
Respondent: Oscar Ferrer Rivera
Violation: Ferrer pleaded guilty to one count of conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1349, and eleven counts of mail fraud, in violation of Title 18, United States Code, Section 1341, before the United States District Court for the District of Puerto Rico… Read More

Penalties: N/A
Respondent: Jonathan A. Rivera-Padilla
Violation: Rivera-Padilla pled guilty to one count of conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1349, and two counts of mail fraud, in violation of Title 18, United States Code, Section 1341, before the United States District Court for the District of Puerto Rico… Read More

Penalties: $25,000.00
Respondent: Alex Tapscott; and Nextblock Global Ltd
Violation: Respondents violated Section 17(a)(2) of the Securities Act, which prohibits any person in the offer or sale of securities from obtaining money or property by means of any untrue statement of material fact or any omission to state a material fact necessary in order to make the statements made not misleading… Read More

Penalties: $252,995.00
Respondent: Brian Fettner
Violation: Fettner surreptitiously viewed documents contemplating an acquisition of G&K Services Inc. by Cintas. Fettner then purchased G&K Services stock in the brokerage accounts of his ex-wife and a former girlfriend, and persuaded his father and another girlfriend to purchase G&K shares. The complaint further alleges that after Cintas and G&K announced the merger on Aug. 16, 2016, G&K’s stock price jumped more than 17 percent, resulting in illicit profits from Fettner’s misconduct of more than $250,000… Read More

Penalties: $300,000.00
Respondent: Wilson-Davis & Co., Inc.
Violation: “Wilson ignored numerous red flags listed in its AML policies, failed to properly investigate certain conduct, and ultimately failed to file SARs on the suspicious activity. By failing to file SARs as required, Wilson willfully violated Section 17(a) of the Exchange Act and Rule 17a-8 thereunder.”… Read More

Penalties: N/A
Respondent: Collector’s Coffee (d/b/a Collectors Café),; Mykalai Kontilai
Violation: Collectors Café and Kontilai, a New York resident, operated a fraudulent scheme that raised more than $23 million from at least 140 investors since April 2014. To entice investors, Collectors Café and Kontilai allegedly falsely stated that Collectors Café had hundreds of dealers signed up to sell billions of dollars of inventory. Additionally, Kontilai allegedly misrepresented the extent of Collectors Café’s purported interest in two contracts signed by Jackie Robinson, the first African American to play for a major league sports team, by falsely claiming the company owned a $36 million asset with the Jackie Robinson contracts, when Collectors Café owned only a fraction of such asset… Read More

Penalties: $669,965.00
Respondent: J.S. Oliver Capital Management L.p.; Ian O. Mausner
Violation: J.S. Oliver and Mausner willfully violated Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, which prohibit fraudulent conduct in the offer and sale of securities and in connection with the purchase or sale of securities… Read More

Penalties: $50,000.00
Respondent: Robert M. Schulman
Violation: Schulman was counsel to King Pharmaceuticals, Inc. when he received material nonpublic information regarding an upcoming merger of King and another company. Schulman communicated this information to his investment advisor, who traded on the basis of this information for the benefit of Schulman as well as certain of his investment advisor clients. Schulman has been convicted of a felony within the meaning of Rule 102(e)(2) of the Commission’s Rules of Practice… Read More

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