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

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FRS enforcements decreased 100% over the past 30 days

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SEC issued enforcements: $59,971,440.07 over the past 30 days

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78 Final Rules go into effect in the next 30 days

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21 Mortgage Lending docs published in the last 7 days

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103 docs with 1146 extracted obligations from the last 7 days

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

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1748 new docs in pro.compliance.ai within the last 7 days

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Introducing new content from WesPay

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Enforcement Report May 23 - 29

FTC

2 Enforcement Documents

$0.00 in Fines

Penalties: N/A
Respondent: NatureCity
Violation: The company claimed that TrueAloe and AloeCran were effective treatments for a range of conditions affecting seniors, including chronic pain, ulcerative colitis, diabetes, and acid reflux. According to the FTC,
these claims were deceptive and not supported by scientific evidence… Read More

Penalties: N/A
Respondent: Bronx Honda
Violation: the defendants told sales people to charge higher financing markups and fees to African-American and Hispanic customers… Read More

SEC

16 Enforcement Documents

$2,125,145.59 in Fines

Penalties: $114,393.34
Respondent: Robert C. Weaver, Jr. ESQ.
Violation: The Commission suspended Weaver as he had been permanently enjoined, by consent, from violating provisions of the federal securities laws in an enforcement action brought by the Commission in the United States District Court for the Central District of California (“district court”).The Commission’s Order provided that the five year suspension period began on August 14, 2014, the date of the permanent injunction against Weaver, and included a provision allowing Weaver to petition the Commission for reinstatement at the conclusion of that term upon a showing by Weaver that he meets certain conditions. This matter is before the Commission on Weaver’s application for reinstatement… Read More

Penalties: N/A
Respondent: Ares Management LLC
Violation: Respondent willfully violated Section 204A of the Advisers Act. Section 204A requires investment advisers subject to Section 204 of the Advisers Act to establish, maintain, and enforce written policies and procedures reasonably designed, taking into consideration the nature of such investment adviser’s business, to prevent the misuse of material, nonpublic information by such investment adviser or any person associated with such investment adviser in violation of the Advisers Act or the Exchange Act or the rules or regulations thereunder… Read More

Penalties: N/A
Respondent: William Andrew Hightower
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 William Andrew Hightower (“Respondent”)… Read More

Penalties: $205,376.25
Respondent: Cash Capital, LLC, America’s Strategic Ore Properties, and Robert W. Wilson
Violation: Wilson violated the Securities Injunction by offering securities to unsophisticated investors and the general public in a gold milling venture. Wilson violated the Disgorgement Order by failing to pay any of the amount ordered to be disgorged. This motion will be heard at 10:30 a.m. on June 22, 2020, in the Courtroom of the Hon. M. James Lorenz, United States District Judge, at the U.S. Courthouse for the Southern District of California, located at 221 West Broadway, San Diego, California. Pursuant to Local Rule, there will be no appearances unless requested by the Court… Read More

Penalties: N/A
Respondent: Paul Horton Smith, Sr.; Northstar Communications, LLC; Planning Services, Inc.; and eGate, LLC
Violation: According to the SEC complaint, from at least January 2018 through the present, Paul Horton Smith, Sr. offered and sold securities in his company, Northstar Communications, LLC, and used his investment advisory firm, eGate, LLC, and insurance and estate planning company, Planning Services, Inc., to market the securities. Smith and Northstar, through free workshops and other investor events, allegedly promised investors guaranteed annual interest payments between 3 percent and 10.5 percent if they invested in so-called “private annuity contracts.” In reality, as the complaint alleges, Smith did not invest the funds raised in any securities and instead used new investor funds to pay investor returns in a Ponzi-like fashion. According to the complaint, Northstar raised more than $5.6 million from at least 35 investors and paid out $5.2 million to those investors as interest payments or principal returned. Smith also allegedly used investor funds to settle investor fraud lawsuits… Read More

Penalties: 1,745,376.00
Respondent: Cash Capital, LLC, America’s Strategic Ore Properties, and Robert W. Wilson
Violation: According to the SEC’s contempt action, Wilson allegedly claimed that he could generate the returns by processing abandoned stockpiles into marketable gold and silver. The SEC also contends that Wilson has not paid the court-ordered disgorgement and prejudgment interest. The SEC seeks a hearing at which the court will determine whether Wilson should be held in civil contempt and impose appropriate sanctions; a sworn accounting by Wilson with respect to any securities he controls; and expedited discovery concerning the allegations in the SEC’s motion. The SEC’s investigation was conducted by Michael D. Hoke and supervised by Jason J. Burt. The litigation will be led by Terry R. Miller and supervised by Gregory A. Kasper… Read More

Penalties: N/A
Respondent: Robert Gilbert
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”) against Robert Gilbert (“Respondent”)… Read More

Penalties: N/A
Respondent: Paul Ewer
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”) against Paul Ewer (“Respondent”)… Read More

Penalties: N/A
Respondent: American Realty Funds Corporation
Violation: “As discussed in more detail above, 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 delinquency letters 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 letters. As a result of the foregoing, Respondent failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder… Read More

Penalties: $60,000.00
Respondent: TSP Capital Management Group, LLC
Violation: Among other things, Rule 206(4)-2 requires registered investment advisers with custody of client assets to have independent public accountants conduct surprise examinations of those client funds or securities, or to have private fund clients timely distribute to their investors annual audited financial statements prepared in accordance with GAAP. Rule 206(4)-7 requires, among other things, that an investment adviser registered with the Commission adopt and implement written policies and procedures reasonably designed to prevent violation of the Advisers Act and rules thereunder. As a result of the conduct described above, TSP Capital willfully violated Section 206(4) of the Advisers Act and Rules 206(4)-2 and 206(4)-7 thereunder… Read More

FINRA

14 Enforcement Documents

$3,802,188.13 in Fines

Penalties: $75,000.00
Respondent: John Grifonetti
Violation: during the Relevant Period, Grifonetti violated NASD Rule 3010 (for conduct prior to December 1, 2014) and FINRA Rules 3110 (for conduct on or after December 1, 2014) and 2010… Read More

Penalties: N/A
Respondent: Tripoint Global Equities, LLC Mark Elenowitz
Violation: As a result of the foregoing, Respondents violated FINRA Rules 2111 and 2010… Read More

Penalties: N/A
Respondent: Douglas A. Sanzone
Violation: Sanzone violated NASD Rule 3010 (for conduct prior to December 1, 2014) and FINRA Rules 3110 (for conduct on or after December 1, 2014) and 2010… Read More

Penalties: $3,641,188.13
Respondent: Stifel, Nicolaus & Company, Incorporated
Violation: Stifel failed to establish and maintain a supervisory system, and failed to establish, maintain, and enforce written supervisory procedures (“WSPs”), that were reasonably designed to achieve compliance with FINRA’s suitability rule as it pertains to early rollovers of Unit Investment Trusts… Read More

Penalties: N/A
Respondent: Gustavo Trujillo Franco
Violation: Failing to appear for on-the-record testimony as required by FINRA Rule 8210… Read More

Penalties: $5,000.00
Respondent: Julie Reyes
Violation: Reyes violated FINRA Rules 3210 and 2010… Read More

Penalties: N/A
Respondent: Courtney James Burn
Violation: Burn violated FINRA Rule 2210(b)(1)(A), 2210(d)(1)(A), and 2010… Read More

Penalties: $20,000.00
Respondent: Michael Patrick Murphy
Violation: Suspended from associating with any FINRA member in any capacity for six months. Respondent willfully failed to timely amend his Form U4 to disclose three federal income tax liens and four State of New York income tax warrants, totaling more than $6 million, in violation of FINRA By-Laws and Rules… Read More

Penalties: $5,000.00
Respondent: Paul Liebman
Violation: In 2017, Respondent borrowed approximately $16,000 from his Firm’s customer without notifying his member firm employer in violation of FINRA Rules 3240 and 2010… Read More

Penalties: N/A
Respondent: Dustin Tylor Aiguier
Violation: Dustin Tylor Aiguier filed a claim in FINRA’s arbitration forum seeking to expunge two customer complaints from his Central Registration Depository (“CRD”) records. The arbitrator
denied expungement relief… Read More

Penalties: $8,500.00
Respondent: Robert Nicholas Korzik
Violation: Korzik personally invested $50,000 in a private securities transaction involving an energy company, and solicited and facilitated the purchase of approximately $550,000 of these securities by three Firm customers, in violation of FINRA Rules 3280 and 2010… Read More

Penalties: $5,000.00
Respondent: Michelle L. Gill
Violation: Gill caused five individuals, including three other registered representatives of Paradigm and one firm customer, to invest a total of $22,500 in a private securities offering that was not offered by Paradigm. The offering was for shares of a company for which Gill’s husband served as the president of the board of directors. Therefore, Gill violated FINRA Rule 3280 and 2010… Read More

Penalties: $37,500.00
Respondent: Axiom Capital Management, Inc.
Violation: During the period of January 2013 to December 2014 (the “Relevant Period), Axiom violated Section 15(c)(2) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 15c2-4 promulgated thereunder, and FINRA Rule 2010 by allowing investor funds to be escrowed in an account controlled by the issuer’ law firm… Read More

Penalties: $5,000.00
Respondent: Sachin Kumar
Violation: While associated with Morgan Stanley, Kumar directed a customer to sign a blank Automated Customer Account Transfer (“ACAT”) form, which Kumar thereafter completed and submitted for the purpose of transferring Customer A’s brokerage account at another FINRA member firm to Morgan Stanley. In so doing, Kumar violated FINRA Rule 2010… Read More

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