Financial Enforcement Actions | Week of Oct 03 to Oct 09

Enforcement Report Oct 03 - 09 feat img

FRS

1 Enforcement Document

$0.00 in Fines

Penalties: N/A
Respondent: Citigroup, Inc.
Violation: Citigroup has not adequately remediated the longstanding enterprise-wide risk management and controls deficiencies previously identified by the Federal Reserve... Read More

SEC

6 Enforcement Documents

$40,000.00 in Fines

Penalties: $15,000.00
Respondent: Francis V. Lorenzo
Violation: Frank Lorenzo then petitioned the United States Court of Appeals for the District of Columbia Circuit for review of the Commission Order. On September 29, 2017, the D.C. Circuit granted in part Frank Lorenzo’s petition, vacating the sanctions imposed by the Commission and remanding the case to the Commission for reconsideration regarding sanctions. Lorenzo v. SEC, 872 F.3d 578, 595-96 (D.C. Cir. 2017). In so ruling, the D.C. Circuit sustained the Commission’s findings that Frank Lorenzo willfully violated Exchange Act Section 10(b), Rules 10b-5(a) and (c) thereunder, and Securities Act Section 17(a)(1). The D.C. Circuit did not sustain the Commission’s finding that Frank Lorenzo violated Exchange Act Rule 10b-5(b). Id. at 588-89... Read More

Penalties: N/A
Respondent: Phillip Timothy Howard, Esq.
Violation: A final judgment was entered by consent against Howard, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), 206(2), 206(4) and 207 of the Advisers Act and Rule 206(4)-8(a) thereunder, in the civil action entitled Securities and Exchange Commission v. Cambridge Capital Group Advisors, LLC, et al., Civil Action Number 4:19-cv-00420, in the United States District Court for the Northern District of Florida... Read More

Penalties: $25,000.00
Respondent: Nicholas Tornello, CPA
Violation: The Commission filed a complaint against Tornello in SEC v. Hill International, Inc., et al. (No. 1:20-cv-00447-PAE) in the United States District Court for the Southern District of New York. Subsequently, the case was transferred to the United States District Court for the Eastern District of Pennsylvania and assigned a new civil action number, SEC v. Hill International, Inc., et al., (No. 2:20-cv-02143-TJS)... Read More

Penalties: N/A
Respondent: Gary S. Wykle a/k/a Gary S. Wyckel
Violation: A final judgment was entered by consent against Wykle, permanently enjoining him from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 (“Securities Act”), and Sections 10(b) and 15(a)(1) of the Exchange Act and Rule 10b5 thereunder, in the civil action entitled Securities and Exchange Commission v. Gary S. Wykle, et al., Civil Action Number 1:20-cv-23616, in the United States District Court for the Southern District of Florida... Read More

Penalties: N/A
Respondent: Wells Fargo & Company
Violation: Pursuant to Rule 1103 of the United States Securities and Exchange Commission’s Rules on Fair Fund and Disgorgement Plans (the “Commission’s Rules”), 17 C.F.R.§ 201.1103, the Commission published a Notice of Proposed Plan of Distribution and Opportunity to Comment (“Notice”) for the distribution of monies placed into a Fair Fund in the above-captioned matter. The Notice invited public comment on the proposed plan of distribution (“Plan”) through September 8, 2020, and the Commission received a public comment that raised various issues (the “Comment”)… Read More

Penalties: N/A
Respondent: Anthony Goldstein
Violation: A judgment was entered by consent against Goldstein, permanently enjoining him from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 (“Securities Act”), and Sections 10(b) and 15(a)(1) of the Exchange Act and Exchange Act Rule 10b-5, in the civil action entitled Securities and Exchange Commission v. Anthony Goldstein, et al., Civil Action Number 20-cv-22901, in the United States District Court for the Southern District of Florida... Read More

FINRA

10 Enforcement Documents

$85,000.00 in Fines

Penalties: N/A
Respondent: Matthew R. Logan
Violation: Matthew R. Logan, while a registered representative at Hornor, Townsend & Kent, LLC (HTK or Firm), cheated on his FINRA Regulatory Element continuing education exam by directing his Assistant, a person associated with HTK, to complete the exam on his behalf. Between October 2017 and October 2018, Logan also directed his Assistant to complete three other continuing education exams on his behalf. By engaging in this conduct, Logan violated FINRA Rule 2010... Read More

Penalties: $5,000.00
Respondent: Alexander Edward Walker
Violation: Walker violated FINRA Rules 8210 and 2010 by failing to timely respond to FINRA's request for information and by providing incomplete responses... Read More

Penalties: $5,000.00
Respondent: Donatas B. Vildzius
Violation: Between August 2015 and April 2017, Vildzius excessively traded the accounts of two customers. By reason of the foregoing, Vildzius violated FINRA Rules 2111 and 2010... Read More

Penalties: $47,500.00
Respondent: Raymond James & Associates, Inc.
Violation: Raymond James failed to submit accurate minimum denomination and maximum interest rates to the MSRB’s Short-term Obligation Rate Transparency (SHORT) System, as was required by MSRB Rule G-34. Further, from April 2009 through July 2018, Raymond James failed to establish and maintain a supervisory system, and failed to establish, maintain and enforce written supervisory procedures (WSPs), reasonably designed to ensure compliance with MSRB Rule G-34, in violation of MSRB Rule G-27... Read More

Penalties: $5,000.00
Respondent: Tracy M. Meade
Violation: Meade engaged in an outside business activity, through which she provided payroll services, without providing prior written notice to the firm, in violation of FINRA Rules 3270 and 2010... Read More

Penalties: $5,000.00
Respondent: Neemit M. Shah
Violation: From March through April 2016, Shah engaged in two undisclosed and unapproved private securities transactions in the total amount of $408,000. Shah’s conduct violated FINRA Rules 3280 and 2010... Read More

Penalties: $10,000.00
Respondent: Dwight L. Dykstra
Violation: In October 2018, while registered through VBS, Dykstra participated in private securities transactions without providing prior written notice to his firm, in violation of FINRA Rules 3280 and 2010... Read More

Penalties: N/A
Respondent: Jenna Kang
Violation: During FINRA's investigation into allegations that Kang had signed customer signatures on firm documents, FINRA Staff issued Kang a request for information and documents, pursuant to FINRA Rule 8210. Kang refused to provide the requested information and documents. As a result, Kang violated FINRA Rule 8210 and 2010... Read More

Penalties: $5,000.00
Respondent: Stephen Leroy Whittaker
Violation: Whittaker engaged in an outside business activity without providing FFEC prior written notice, in violation of FINRA Rules 3270 and 2010... Read More

Penalties: $7,500.00
Respondent: Steven Michael Gribben
Violation: From November 2017 to February 2018, Gribben negligently signed several transaction documents containing false statements. Gribben negligently signed those documents knowing that they would be submitted to courts to obtain judicial confirmation that securities issued in exchange for the satisfaction of claims against ten companies would be deemed exempted securities under Section 3(a)(10) of the Securities Act of 1933 (“Securities Act”) and thus generally not subject to the registration requirements of Section 5 of the Securities Act. By virtue of these negligent misrepresentations, Gribben violated FINRA Rule 2010... Read More

CME

3 Enforcement Documents

$115,000.00 in Fines

Penalties: $35,000.00
Respondent: William Coles
Violation: Pursuant to an offer of settlement that William Coles (“Coles”) presented at a hearing on October 6, 2020 in which Coles neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the COMEX Business Conduct Committee (“Panel”) found that between May 2, 2017 and November 30, 2018, Coles executed a series of pre-arranged trades in COMEX High-Grade Copper Trading at Settlement futures without exposing the orders subject to pre-execution communication for a minimum of five seconds... Read More

Penalties: $30,000.00
Respondent: Robbins Futures Inc.
Violation: Pursuant to an offer of settlement Robbins Futures, Inc. (“Robbins Futures”) presented at a hearing on October 6, 2020, in which Robbins Futures neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC Panel”) found that Robbins Futures provided a Leader/Follower subscription service (“Leader/Follower Program”) in which subscribers used an AutoTrade trading service to automatically mirror the live trading of a designated chosen “leader"... Read More

Penalties: $50,000.00
Respondent: Eric Zuccarelli
Violation: Pursuant to an offer of settlement that Eric Zuccarelli (“Zuccarelli”) presented at a hearing on October 6, 2020 in which Zuccarelli neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the COMEX Business Conduct Committee (“Panel”) found that between May 2, 2017 and November 30, 2018, Zuccarelli executed a series of pre-arranged trades in COMEX High-Grade Copper Trading at Settlement futures without exposing the orders subject to pre-execution communication for a minimum of five seconds. Further, the Panel found that Zuccarelli improperly allowed other traders to enter orders on Globex using his unique TAG 50 User ID... Read More

CFTC

5 Enforcement Documents

$932,534.22 in Fines

Penalties: N/A
Respondent: Phy Capital Investments LLC.
Violation: The Commission’s complaint alleged, inter alia, that PCI and Bretas engaged in multiple acts of misappropriation of commodity pool and client funds and the issuance of materially false account statements to clients, all in violation of 5 certain anti-fraud provisions of the Act... Read More

Penalties: $932,534.22
Respondent: Michael J. Salerno, et al
Violation: On April 17, 2018, Plaintiff filed a Complaint seeking emergency relief against Defendants and Relief Defendants to halt ongoing fraudulent conduct in connection with the fraudulent solicitation of members of the public to become foreign currency (“forex”) proprietary traders... Read More

Penalties: N/A
Respondent: Southwest Services, et al
Violation: Beginning from at least August 2016 through at least April 2018 (the “Relevant Period”), Southwest Services, L.L.C. a/k/a South West Services, LLC (“Southwest Services”), a Wisconsin limited liability company, offered to enter into and/or entered into agreements, contracts, or transactions in financed retail foreign currency (“forex”) with customers located in the United States who were not eligible contract participants (“ECPs”) that did not result in the delivery of forex within two (2) days of the transaction date... Read More

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