Financial Enforcement Actions | Week of Sep 12 to Sep 18

Enforcement Report Sep 12 - 18 feat image

Enforcement Report Sep 12 - 18

FTC

4 Enforcement Documents

$0.00 in Fines

Penalties: N/A
Respondent: Axon Enterprise Inc.
Violation: Complaint Counsel respectfully move the Court for an order pursuant to Rule 3.36 for the issuance of the attached subpoenas ad testificandum to the nine employees of various county and city governments whom Complaint Counsel have included in its Final Proposed Witness List and whom Complaint Counsel currently intend to call to testify at trial... Read More

Penalties: N/A
Respondent: Outreach Calling Inc., Outsource 300 Inc., Production Consulting Corp., Thomas Berkenbush, William English, Mark Gelvan, Damian Muziani.
Violation: Since at least 2010, Defendants, led by Mark Gelvan, have operated a deceptive fundraising scheme that solicits donations on behalf of sham charities... Read More

Penalties: N/A
Respondent: StimTein
Violation: EMR’s advertised joint pain relief claims for StimTein were false and not supported by scientific evidence... Read More

Penalties: N/A
Respondent: Online Trading Academy (OTA)
Violation: Claimed that anyone who used its patented strategy was likely to make a lot of money trading in the financial markets... Read More

CFTC

7 Enforcement Documents

$0.00 in Fines

Penalties: N/A
Respondent: Mayco Alexis Maldonado Garcia, Cesar Castaneda, Joel Castaneda Garcia, and Rodrigo Jose Castro Molina, jointly Global Trading Club
Violation: From at least August 2016 through October 2017 (the “Relevant Period”), Mayco Alexis Maldonado Garcia (“Maldonado”), Cesar Castaneda (“Cesar Castaneda”), Joel Castaneda Garcia (“Joel Castaneda”), and Rodrigo Jose Castro Molina (“Castro”), jointly d/b/a Global Trading Club (collectively, “Defendants”), operated a fraudulent scheme involving the solicitation of customer funds which were to be used to speculate in price movements of Bitcoin, a digital asset... Read More

Penalties: N/A
Respondent: Highrise Advantage LLC, Bull Run Advantage, LLC, Green Knight Investments LLC, King Royalty, LLC, SR&B Investment Enterprises, Inc. Avinash Singh, Randy Rosseau, Daniel Cologero, Hemraj Singh and Surujpaul Sahdeo
Violation: Defendants are involved in a fraudulent Ponzi-type scheme whereby Defendants solicited and accepted at least $4,750,000 from at least 150 customers in connection with commodity pools purportedly investing in retail foreign currency contracts (“forex”), (id. at 13)... Read More

Penalties: N/A
Respondent: David Seibert, et al.
Violation: Between at least March 2016 and April 2019 (“Relevant Period”), Defendant David Seibert (“Seibert”), individually and doing business as (“d/b/a”) SEI-Equity Investments, also known as (“a/k/a”) SEI Equity Investments, a/k/a Seibert Equity Investments (“SEI”), and d/b/a Great America Funding, LLC a/k/a Great American Funding, L.L.C., a/k/a Great American Funding Lender Services (“GAF”), fraudulently solicited, accepted and pooled approximately $10 million from at least eight participants... Read More

Penalties: N/A
Respondent: Edge Financial Technologies
Violation: On January 28, 2018, Plaintiff Commodity Futures Trading Commission ("Commission" or "CFTC") filed a Complaint against Defendant Edge Financial Technologies, Inc. ("Edge") seeking injunctive and other equitable relief, as well as the imposition of civil penalties, for violations of the Commodity Exchange Act, 7 U.S.C. §§ 1-26 (2018), and the Commission's Regulations ("Regulations") promulgated thereunder, 17 C.F .R. pts. 1-190 (2019)... Read More

Penalties: N/A
Respondent: High Rise Advantage, LLC, et al.
Violation: Have solicited and accepted at least $4,750,000 from at least 150 participants (“pool participants”), in connection with pooled investments in
retail foreign currency contracts (“forex”)... Read More

Penalties: N/A
Respondent: Sukarne SA de CV
Violation: Violated Section 4a(e) of the Commodity Exchange Act (“Act”), 7 U.S.C. § 6a(e) (2018)... Read More

CME

1 Enforcement Document

$25,000.00 in Fines

Penalties: $25,000.00
Respondent: Sukarne SA de CV
Violation: Pursuant to an offer of settlement in which Sukarne neither admitted nor denied the rule violations upon which the penalty is based, on September 3, 2020, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that entering into and at the close of trading on June 23, 2020, Sukarne S.A. de C.V. and Sukarne Agroindustrial S.A. de C.V. accounts, which were aggregated and controlled under the Sukarne name, combined held a short position of 500 June 2020 Live Cattle futures contracts... Read More

CFPB

6 Enforcement Documents

$625,000.00 in Fines

Penalties: N/A
Respondent: PEAKS Trust 2009-1 et al.
Violation: PEAKS provided substantial assistance to ITT Educational Services, Inc. (ITT) in engaging in unfair acts and practices in violation of the Consumer Financial Protection Act of 2010... Read More

Penalties: $625,000.00
Respondent: ClearPath Lending, Inc.
Violation: ClearPath sent consumers numerous advertisements for VA-guaranteed mortgages that, among other things, misrepresented the
credit terms of the advertised mortgage and failed to include disclosures required by Regulation Z... Read More

FINRA

7 Enforcement Documents

$885,906.38 in Fines

Penalties: $125,000.00
Respondent: Eric S. Smith
Violation: Smith fraudulently failed to disclose and misrepresented material facts to investors, in violation of Section 10(b) of the Exchange Act, Exchange Act Rule 10b-5, and FINRA Rules 2020 and 2010... Read More

Penalties: $631,737.89
Respondent: Michael Joseph Clarke
Violation: Registered representative converted funds, made material misrepresentations, and executed bad checks and failed electronic transfers... Read More

Penalties: N/A
Respondent: Alonzo C. Castillo
Violation: Castillo misrepresented to J.P. Morgan the results of a FINRA Series 6 Exam in writing. Through this conduct, Castillo violated FINRA Rule 2010... Read More

Penalties: $124,168.49
Respondent: Griffinest Asia Securities LLC
Violation: Between July 2016 and November 2018, Griffinest Asia failed to establish, maintain, and enforce a supervisory system and written supervisory procedures (WSPs) reasonably designed to supervise trades in Non-Traditional Exchange Traded Products (ETPs).1 As a result, Griffinest Asia violated FINRA Rules 3110(a), 3110(b), and 2010... Read More

Penalties: N/A
Respondent: Roger Allan Duval
Violation: From June 2017 through April 2019, while associated with MML and then Pruco, Duval converted approximately $130,000 from three elderly customers for his own personal use, thereby violating FINRA Rules 2150(a) and 2010... Read More

Penalties: N/A
Respondent: Matthew O. Clason
Violation: In September 2020, Clason refused to provide documents and information requested by FINRA pursuant to FINRA Rule 8210, thereby violating FINRA Rules 8210 and 2010... Read More

Penalties: $5,000.00
Respondent: Ferrell Lee Rollins Jr.
Violation: In September 2016, while associated with FINRA-member CIG, Rollins borrowed $70,000 from a customer in violation of FINRA Rules 3240 and 2010... Read More

SEC

40 Enforcement Documents

$21,589,590.00 in Fines

Penalties: N/A
Respondent: Tri Clean Enterprises Inc.,
Violation: Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligations 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: $40,000.00
Respondent: Thomas Vigorito
Violation: In addition, between January 2014 and October 2016, Respondent obtained certain new issue municipal bonds for Roosevelt’s account by using the flipper to place customer orders – as opposed to dealer orders – on Roosevelt’s behalf with the syndicate in certain primary offerings... Read More

Penalties: N/A
Respondent: Kenneth A. Stromsland
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 Kenneth A. Stromsland (“Respondent”)... Read More

Penalties: N/A
Respondent: Samdrew VII, Inc.
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 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. As a result of the foregoing, the Respondent failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder... Read More

Penalties: $80,000.00
Respondent: Keyport Venture Advisors LLC, et al.
Violation: As a result of the conduct described above, Respondents willfully violated Section 206(4) of the Advisers Act and Rule 206(4)-8 promulgated thereunder, which makes it unlawful for any investment adviser to a pooled investment vehicle to “[m]ake any untrue statement of a material fact or to omit to state a material fact necessary to make the statements made, in the lightof the circumstances under which they were made, not misleading, to any investor or prospective investor in the pooled investment vehicle” or “engage in any act, practice, or course of business that is fraudulent, deceptive, or manipulative with respect to any investor or prospective investor in the pooled investment vehicle.”... Read More

Penalties: N/A
Respondent: Smartag International, 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, which was delivered... Read More

Penalties: N/A
Respondent: ExeLED Holdings 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, which was delivered... Read More

Penalties: $50,000.00
Respondent: Navian Capital Securities LLC and Robert P. Jenkins
Violation: This proceeding arises out of the failure of Navian, a registered broker-dealer, to properly calculate and report its net capital. As a consequence, from July 2018 until May 2019 (the “Relevant Period”), Navian operated with a net capital deficiency and violated net capital reporting and books and records provisions. Jenkins, the chief financial officer (“CFO”) and financial and operations principal (“FINOP”), caused Navian’s violations by failing to properly compute and report Navian’s net capital... Read More

Penalties: N/A
Respondent: Peaksoft Multinet Corp.
Violation: As discussed in more detail above, Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligations 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: John Geraci
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 203(f) of the Investment Advisers Act of 1940 (“Advisers Act”) against John Geraci (“Geraci” or “Respondent”)... Read More

Penalties: N/A
Respondent: Loyal Source Market Services, et al.
Violation: Respondent’s registration statement falsely states that from inception (April 1, 2016) through January 31, 2017 it earned $127,571 in total revenue... Read More

Penalties: N/A
Respondent: The Miix Group, Incorporated
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: Source Media 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: $12,000,000.00
Respondent: Henry Seth Brock, CPA
Violation: The Securities and Exchange Commission deems it appropriate to issue an order of forthwith suspension of Henry Seth Brock (“Brock”) pursuant to Rule 102(e)(2) of the Commission’s Rules of Practice [17 C.F.R. § 201.102(e)(2)]... Read More

Penalties: $581,961.00
Respondent: Coordinated Capital Securities Inc.
Violation: These proceedings arise out of the failure of Coordinated Capital Securities, Inc., a dually-registered investment adviser and broker-dealer, to disclose it was receiving fees pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”) in connection with its mutual fund share class selection practices. CCS failed to disclose that at times, during the period from January 2014 through December 2018 (the “Relevant Period”), it purchased, recommended, or held mutual fund share classes that charged 12b-1 fees for its clients... Read More

Penalties: $500,000.00
Respondent: David F. Bandimere
Violation: Respondent violated certain antifraud provisions of the Securities Act while operating as an unregistered broker in selling unregistered investments in IV Capital Ltd. and Universal Consulting Resources LLC, two Ponzi schemes which the Commission brought actions against in 2011 and 2010 respectively... Read More

Penalties: $200,000.00
Respondent: Roosevelt & Cross, Inc.
Violation: In addition, between January 2014 and October 2016, Roosevelt, through certain Roosevelt registered representatives, obtained certain new issue municipal bonds for Roosevelt’s account by using the flippers to place customer orders – as opposed to dealer orders – on its behalf with the syndicate in certain primary offerings... Read More

Penalties: $167,629.00
Respondent: Northern Trust Hedge Fund Services LLC and Northern Trust Global Fund Services Cayman Limited
Violation: These proceedings arise out of the role of Respondents, Northern Trust Hedge Fund Services LLC and Northern Trust Global Fund Services Cayman Limited (collectively, “Northern Trust” or the “Firm”), as the fund administrators for the LR Global Frontier Master Fund, Ltd. (“Master Fund”) and two feeder funds, the LR Global Frontier Fund, Ltd. (offshore) and the LR Global Frontier Fund LP (onshore) (collectively, the “Frontier Funds” or “Funds”)... Read More

Penalties: $1,745,000.00
Respondent: Gilder Gagnon Howe & Co. LLC and Bonnie M. Haupt
Violation: From 2017 through early 2018, the dually-registered investment adviser and broker-dealer Gilder Gagnon Howe & Co. LLC (“GGHC”), failed to conduct reviews of its accounts for excessive commissions and trading, as required by its policies and procedures... Read More

Penalties: $25,000.00
Respondent: William W. Welsh
Violation: Respondent violated retail order period priority provisions in certain new issue municipal bond offerings by selling bonds intended for retail customers to two unregistered brokers that were known in the industry as “flippers.”... Read More

Penalties: $100,000.00
Respondent: WCAS Management Corporation
Violation: Welsh Carson caused the WC Funds to violate Section 13(d)(2) of the Exchange Act and Rule 13d-2 thereunder when Item 4 of the 2016 filing materially changed because Welsh Carson had abandoned its interest in acquiring Hanger, formulated a definitive intention to liquidate the entirety of its Hanger holdings, and taken steps to liquidate its Hanger shares and this material change in the facts set forth in the 2016 filing was not disclosed... Read More

Penalties: $6,100,000.00
Respondent: Unikrn, Inc.
Violation: Unikrn violated Section 5(a) of the Securities Act, which states that unless a registration statement is in effect as to a security, it shall be unlawful for any person, directly or indirectly, to make use of any means or instruments of transportation or communication in interstate commerce or of the mails to sell such security through the use or medium of any prospectus or otherwise; or to carry or cause to be carried through the mails or in interstate commerce, by any means or instruments of transportation, any such security for the purpose of sale or for delivery after sale... Read More

Penalties: N/A
Respondent: Worldtek Corp. (f/k/a Lundell Technologies, Inc.)
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 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. As a result of the foregoing, the Respondent failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder... Read More

Penalties: N/A
Respondent: Life Critical Care Corporation
Violation: As discussed in more detail above, Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligations 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. 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

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