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

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FINRA enforcements decreased 70% over the past 30 days

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

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161 Final Rules go into effect in the next 30 days

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38 Mortgage Lending docs published in the last 7 days

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1460 docs with 2637 extracted obligations from the last 7 days

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

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3919 new docs in pro.compliance.ai within the last 7 days

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Enforcement Report May 15 - 21

FTC

5 Enforcement Documents

$76,166.00 in Fines

Penalties: N/A
Respondent: HeidelbergCement AG; Lehigh Hanson, Inc.; Lehigh Cement Company LLC; Elementia S.A.B. de C.V.; Giant Cement Holding, Inc.; Keystone Cement Company
Violation: The Acquisition Agreement constitutes an unfair method of competition in violation of Section 5 of the FTC Act, as amended, 15 U.S.C. § 45. The Acquisition, if consummated, may substantially lessen competition in the relevant market in violation of Section 7 of the Clayton Act, as amended, 15 U.S.C. § 18, and is an unfair method of competition in violation of Section 5 of the FTC Act, as amended, 15 U.S.C. § 45… Read More

Penalties: $15,000.00
Respondent: Frontier Communications Corporation; Frontier Communications Parent Inc.; Frontier Communications Intermediate LLC.; Frontier Communications Holdings LLC.
Violation: Since at least January 1, 2015, thousands of consumers around the country, including numerous consumers located within the geographic boundaries of each of the States of Arizona, California, Indiana, Michigan, North Carolina, and Wisconsin, have complained to Frontier and to government agencies that Frontier was not providing DSL Internet service at speeds corresponding to the tiers of service the consumers paid for… Read More

Penalties: $30,583.14
Respondent: Cody Alt & Kushly Industries LLC
Violation: This matter involves the Respondents’ advertising of products containing cannabidiol (“CBD Products”). The complaint alleges that Respondents violated Sections 5(a) and 12 of the FTC Act by disseminating false and unsubstantiated advertisements that claimed that: (1) CBD Products effectively treat, mitigate, or cure diseases or health conditions including: sleep disorders, including insomnia and narcolepsy; psychiatric disorders, including depression, bipolar disorder, post-traumatic stress disorder, psychosis, and anorexia nervosa; cancer; multiple sclerosis; Parkinson’s disease; hypertension; Alzheimer’s disease; acne, psoriasis, eczema; arthritis; muscle spasms; pain resulting from endometriosis; and dysmenorrhea; and (2) studies or scientific research prove that CBD Products effectively treat, mitigate, or cure multiple sclerosis, general anxiety disorder, post-traumatic stress disorder, panic disorder, obsessive-compulsive disorder and social anxiety disorder, depression, cancer, sleep disorders, hypertension, Parkinson’s disease, Alzheimer’s disease, acne, psoriasis, and eczema, and improve sleep… Read More

CFPB

2 Enforcement Documents

$218,162.00 in Fines

Penalties: $218,162.00
Respondent: 3rd Generation, Inc., dba California Auto Finance
Violation: Charging consumers interest for late LDW fee payments without their consent or knowledge caused them substantial injury that was not reasonably avoidable or outweighed by any countervailing benefit to consumers or to competition… Read More

FINRA

8 Enforcement Documents

$813,685.00 in Fines

Penalties: $38,812.60
Respondent: Mercer Hicks III
Violation: Respondent Mercer Hicks III is barred from associating with any FINRA member firm in any capacity for making unsuitable recommendations to five senior customers in violation of customer-specific and reasonable-basis suitability obligations… Read More

Penalties: $27,865.00
Respondent: Carl George Antaki
Violation: Between August 2017 and June 2019, Antaki excessively and unsuitably traded one customer’s account, in violation of FINRA Rules 2111 and 2010… Read More

Penalties: $10,000.00
Respondent: Christopher Peter Tranchina
Violation: Respondent Christopher Peter Tranchina engaged in conversion and unauthorized access to firm information by breaking into his former firm’s offices and taking customer files. For this misconduct, he is barred from associating with a FINRA member firm in any capacity. He also willfully failed to timely amend his Form U4 to disclose the criminal proceeding that resulted from his misconduct… Read More

Penalties: N/A
Respondent: David Daniel Lopez
Violation: From January 1.2018 through March 6.2019 (the Relevant Period). Lopez 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 Rule 15c3-5 under the Securities Exchange Act of 1934 (the Market Access Rule), in violation of FINRA Rules 3110 and 2010… Read More

Penalties: $10,000.00
Respondent: Levi William Johnson
Violation: From July 2014 through September 2017, Johnson borrowed approximately $200,000 from one of his brokerage customers, a family member, without providing required notice to the firm. He also made false statements to the firm that the loans and another transfer were gifts and, in one instance, made a false statement regarding the purpose of a withdrawal from the customer’s account. Therefore, Johnson violated FINRA Rules 3240 and 2010… Read More

Penalties: $5,000.00
Respondent: Mark William Just
Violation: While associated with Triad, Just willfully failed to timely amend his Uniform Application for Securities Industry Registration or Transfer (Form U4) to disclose two state tax liens dated January 31, 2017, and February 13, 2018, which totaled $37,333.80. By willfully failing to timely amend his Form U4 to disclose his two state tax liens, Just violated Article V, Section 2(c) of FINRA’s By-Laws and FINRA Rules 1122 and 2010… Read More

Penalties: $722,007.20
Respondent: Calton & Associates, Inc
Violation: During the period of February 2014 to February 2020, Calton failed to establish and maintain a supervisory system reasonably designed to achieve compliance with the firm’s suitability obligations in connection with sales of non-traditional and volatility-linked exchange traded products (ETPs). Non-traditional and volatility-linked ETPs are complex products intended to be held for short periods of time as part of a trading strategy rather than as buy-and-hold investments… Read More

Penalties: N/A
Respondent: Chander Ketu Goel
Violation: Goel failed to provide documents and information requested by FINRA pursuant to FINRA Rule 8210. By virtue of this misconduct, Goel violated FINRA Rules 8210 and 2010… Read More

CME

7 Enforcement Documents

$1,376,755.00 in Fines

Penalties: $40,000.00
Respondent: Capula Investment Management LLP
Violation: Pursuant to an offer of settlement in which Capula Investment Management LLP (“Capula”) neither admitted nor denied the rule violation or factual findings upon which the penalty is based, on May 18, 2021, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that on two dates between February and June 2020, Capula executed certain Exchange for Related Position (“EFRP”) transactions in the June 2020 Ultra U.S. Treasury Bond futures, June 2020 Five Year Treasury Note futures, June 2020 Ten Year Treasury Note futures, and June 2020 U.S. Treasury Bond futures contracts that were contingent upon the execution of other EFRP transactions… Read More

Penalties: $40,000.00
Respondent: William Kerstein
Violation: Pursuant to an offer of settlement in which William Kerstein neither admitted nor denied the rule violations or factual findings upon which the penalty is based, on May 18, 2021, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that on multiple occasions between June 28, 2018, and June 13, 2019, Kerstein, while acting as a local in the Standard and Poor’s 500 Stock Price Index (“S&P”) futures pit, prearranged and noncompetitively executed trades opposite other local traders. Further, Kerstein executed the trades opposite the locals without openly bidding or offering the orders… Read More

Penalties: $55,000.00
Respondent: BofA Securities, Inc
Violation: Pursuant to an offer of settlement in which BofA Securities, Inc. (“BofAS”) neither admitted nor denied the rule violation or factual findings upon which the penalty is based, on May 18, 2021, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that on March 19, 2020, and May 4, 2020, BofAS executed certain Exchange for Related Position (“EFRP”) transactions in the June 2020 Ultra U.S. Treasury Bond futures, June 2020 Five Year Treasury Note futures, June 2020 Ten Year Treasury Note futures, and June 2020 U.S. Treasury Bond futures contracts that were contingent upon the execution of other EFRP transactions. The Panel further found that BofAS executed these transactions simultaneously and without incurring material market risk… Read More

Penalties: $347,938.73
Respondent: Peter Georgantones
Violation: Pursuant to an offer of settlement in which Peter Georgantones (“Georgantones”) neither admitted nor denied the rule violations upon which the penalty is based, on May 18, 2021, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that on multiple occasions between November 21, 2012, and August 1, 2019, Georgantones, a broker, successfully requested account changes for trades he executed for customers in the E-Mini S&P 500, the E-Mini NASDAQ-100, and Lean Hog futures markets wherein certain accounts that he managed were the recipients of profitable trades that he initially executed in other accounts he managed… Read More

Penalties: $272,938.73
Respondent: Roy E. Abbott Futures Inc
Violation: Pursuant to an offer of settlement in which Roy E. Abbott Futures Inc. (“RAF”) neither admitted nor denied the rule violations upon which the penalty is based, on May 18, 2021, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that between November 21, 2012, and August 1, 2019, a broker employed by RAF, an introducing broker, successfully requested account changes for trades he executed for customers in the E-Mini S&P 500, the E-Mini NASDAQ-100, and Lean Hog futures markets wherein certain accounts that he traded on behalf of customers were the recipients of profitable trades that he initially executed in other accounts he traded… Read More

Penalties: $347,938.73
Respondent: Peter Georgantones
Violation: Pursuant to an offer of settlement in which Peter Georgantones neither admitted nor denied the rule violations upon which the penalty is based, on May 18, 2021, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that on multiple occasions between November 21, 2012, and August 1, 2019, Georgantones, a broker, successfully requested account changes for trades he executed for customers in the Kansas City Hard Red Winter Wheat, Chicago Soft Red Winter Wheat, Soybean, and Corn futures markets wherein certain accounts that he managed were the recipients of profitable trades that he initially executed in other accounts he managed… Read More

Penalties: $272,938.73
Respondent: Roy E. Abbott Futures Inc
Violation: Pursuant to an offer of settlement in which Roy E. Abbott Futures Inc. (“RAF”) neither admitted nor denied the rule violations upon which the penalty is based, on May 18, 2021, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that between November 21, 2012, and August 1, 2019, a broker employed by RAF, an introducing broker, successfully requested account changes for trades he executed for customers in the E-Mini S&P 500, the E-Mini NASDAQ-100, and Lean Hog futures markets wherein certain accounts that he traded on behalf of customers were the recipients of profitable trades that he initially executed in other accounts he traded… Read More

SEC

39 Enforcement Documents

$10,713,785.00 in Fines

Penalties: N/A
Respondent: FreeSeas Inc.
Violation: Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter… Read More

Penalties: N/A
Respondent: Generation NEXT Franchise Brands, Inc.,
Violation: Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter… Read More

Penalties: N/A
Respondent: Emil Botvinnik
Violation: The Commission’s complaint alleged as follows: From June 2012 to November 2014, Botvinnik, then a registered representative at a broker-dealer based in New York City, engaged in violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Section 17(a) of the Securities Act of 1933 involving excessive trading in the accounts of his retail customers that generated substantial commissions to enrich himself while his customers experienced significant losses… Read More

Penalties: N/A
Respondent: Josiah David, Denis Joachim, The Premier Healthcare Solution LLC., Provision Corporation LLC.
Violation: According to the SEC’s complaint, since July 2017, Premier Healthcare Solution, LLC and its founder, Josiah David (formerly known as Dennis Lee), an individual with felony convictions and an extensive history of regulatory violations, have been raising money from investors by selling them membership interests in Premier, a company that purported to offer employers a supplemental medical reimbursement plan… Read More

Penalties: N/A
Respondent: Carlos R. Irizarry Santiago
Violation: According to the SEC’s filing in U.S. District Court for the District of Columbia, the SEC is investigating whether certain individuals or entities violated the antifraud and offering registration provisions of the federal securities laws. The filing states that, based on its ongoing investigation, the SEC has reason to believe that Irizarry, the accountant and Chief Financial Officer for one of the entities, personally prepared financial statements, projections, and other documents for and on behalf of the company and attended meetings in which the company disclosed projections and financial information to investors… Read More

Penalties: $1,509,152.34
Respondent: Emil Botvinnik
Violation: On September 7, 2018, the SEC charged Emil Botvinnik, a former registered representative associated with broker-dealer Windsor Street Capital, L.P. with defrauding five retail customers by recommending frequent, short-term trades which generated large commissions for Botvinnik but were almost guaranteed to lose money for his customers… Read More

Penalties: N/A
Respondent: Clic Technology, Inc
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter… Read More

Penalties: N/A
Respondent: Creative Waste Solutions, Inc
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter… Read More

Penalties: N/A
Respondent: Stephen Michael Thompson; Steven Robert Comisar; Dale Jay Engelhardt; Ross Gregory Erskine & LFS Funding Limited Partnership
Violation: According to the SEC’s complaint, between May 2018 and May 2019, the defendants raised more than $618,000 from investors through an offering of limited partnership securities interests in LFS Funding. The SEC alleges that Thompson, an individual with a history of securities law violations, possessed undisclosed de facto control over LFS Funding despite others being named as nominal general partners to conceal Thompson’s involvement. The SEC further alleges that Thompson, acting on LFS Funding’s behalf, recruited and engaged Comisar, Engelhardt, and Erskine, none of whom were registered as a broker or dealer, as salespersons to solicit investors. As alleged in the complaint, the offering documents represented that investments would be used to fund two medical clinics… Read More

Penalties: N/A
Respondent: BTIG, LLC
Violation: According to the SEC’s complaint, from December 2016 through July 2017, BTIG violated Rule 200(g) of Regulation SHO when it mismarked more than 90 sale orders from a hedge fund customer-representing total sales of more than $250 million-as “long” and “short exempt” when those orders should have been marked as “short.” According to the complaint, as a registered broker-dealer, BTIG had independent gatekeeper responsibilities to ensure that the trades it executed were correctly marked… Read More

Penalties: N/A
Respondent: Boston Carriers, Inc.
Violation: The Respondent is delinquent in its periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter… Read More

Penalties: N/A
Respondent: Chelsea Oil & Gas Ltd.
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter… Read More

Penalties: N/A
Respondent: Arias Intel Corp.,
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter… Read More

Penalties: N/A
Respondent: AtheroNova, Inc
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter… Read More

Penalties: N/A
Respondent: Gil Beserglik; Raz Beserglik; Kai Christian Peterson
Violation: The Commission’s complaint alleged that between October 2014 and August 2017 (the “Relevant Period”), among other things, Respondents owned, operated, and/or were controlling persons of the Bloombex Brokers and the Call Centers. During this period, the Bloombex Brokers and the Call Centers each functioned as binary option brokers offering and selling securities-based binary options without being: (a) registered with the Commission as a broker or dealer or (b) associated with a registered broker or dealer… Read More

Penalties: N/A
Respondent: Aedan Financial Corporation
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter… Read More

Penalties: N/A
Respondent: Echo Therapeutics, Inc.
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it on March 19, 2021, by the Commission’s Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter… Read More

Penalties: N/A
Respondent: Seth A. Leyton
Violation: The Commission’s complaint alleged, among other things, that Leyton aided and abetted a scheme to defraud investors that involved obtaining either CMOs or cash to purchase CMOs, which the defendants represented they would pledge as collateral to obtain loans and then invest the proceeds in an offshore trading program that purported to generate astronomical profits. The complaint also alleged that from January 2010 through at least July 2011, the defendants obtained more than $18 million in cash or CMOs from more than 18 investors nationwide. The complaint also alleged that Leyton was recruited to open brokerage accounts to enable investors to transfer their CMOs to the defendants, delayed return of the CMOs to investors when the defendants were unable to obtain loans using the CMOs as collateral, sold the investors’ CMOs contrary to the agreements with investors, and transferred investors’ CMOs to other brokerage accounts contrary to agreements with investors… Read More

Penalties: N/A
Respondent: W O Group, Inc
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations… Read More

Penalties: N/A
Respondent: Traqer Corp
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter… Read More

Penalties: N/A
Respondent: YBCC, Inc
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations… Read More

Penalties: N/A
Respondent: USA Zhimingde International Group Corp
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter… Read More

Penalties: N/A
Respondent: Kirk Sperry & Sperry and Sons Capital Investments LLC.
Violation: In its complaint, the plaintiff Securities and Exchange Commission (the “Commission”) alleged defendants Kirk Sperry and Sperry and Sons Capital Investments, LLC (“Sperry and Sons”) (collectively “Defendants”) violated the federal securities laws… Read More

Penalties: $204,633.00
Respondent: Roy Y. Gagaza
Violation: The SEC’s complaint alleges that the defendant, Roy Y. Gagaza, one of 1 Global’s top sales agents, unlawfully sold more than $10.8 million of 1 Global’s unregistered securities to numerous investors. According to the complaint, Gagaza marketed 1 Global securities to investors as providing “peace of mind for some money in a volatile market” and claimed that the investments would achieve high single-digit or low double-digit annual returns. Gagaza earned approximately $403,000 in commissions on his sales, even though he was not registered as broker-dealer or associated with a registered broker-dealer… Read More

Penalties: N/A
Respondent: Spectrascience Inc.
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter… Read More

Penalties: N/A
Respondent: UPI Blockchain Internet Ltd.
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations… Read More

Penalties: $9,000,000.00
Respondent: S&P Dow Jones Indices LLC.
Violation: S&P DJI’s actions with respect to the undisclosed Auto Hold resulted in static Index values being published and disseminated to the market that were not based on the real-time 3 prices of certain VIX futures contracts. As a result, S&P DJI violated Section 17(a)(3) of the Securities Act… Read More

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