In re Cargile Investment Management, Inc. (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest. According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $67,553.86 and prejudgment interest of $2,587.61.

SEC Order
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In re Hard Eight Futures, LLC (A.P. Sept. 30, 2019, Settled); In re Igor Chernomzav (Sept. 30, 2019, Settled)

Actions against Respondents, a trading firm and its principal, for alleged spoofing.  According to the CFTC, Respondents placed orders for E-mini futures contracts with the intent to cancel them before execution to manipulate prices.  Respondent trading firm has agreed to pay a civil penalty of $1,750,000.  Respondent principal has agreed to pay a civil penalty of $750,000 and to a nine-month trading bar.

CFTC Press Release

CFTC Order (Hard Eight)

CFTC Order (Chernomzav)
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In re Wedbush Securities, Inc. (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest.  According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $1,703,194.38 and prejudgment interest of $149,346.59.

SEC Order
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In re Henley & Company Wealth Management (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest.  According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $32,657 and prejudgment interest of $4,209.

SEC Order
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In re Nebulous, Inc. (A.P. Sept. 30, 2019, Settled)

Action against Respondent, a cloud services company, for an alleged unregistered offering.  The SEC alleges that Respondent issued and publicly sold convertible electronic notes without registering or securing an exemption from registration.  Respondent has agreed to pay disgorgement of $120,000, prejudgment interest of $24,601.85, and a civil penalty of $80,000.

SEC Order

SEC Administrative Summary
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SEC v. Dana J. Bradley, et al. (W.D.N.C. Sept. 30, 2019, Contested)

Action against Defendants, real estate development companies and their owners, for alleged fraud. The SEC alleges that Defendants solicited investments for real estate developments but instead used the proceeds to make Ponzi-like payments to earlier investors and to pay the debts of other business ventures.

SEC Complaint

SEC Litigation Release
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SEC v. Yellowstone Partners, LLC, David H. Hansen, and Cameron G. High (D. Idaho. Sept. 30, 2019, Contested)

Action against Defendants, an investment adviser and its principals, for allegedly overbilling clients for services performed and billing for services not performed.  The SEC further alleges that Defendants failed to keep adequate books and records.

SEC Complaint

SEC Litigation Release
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In re Folger Nolan Fleming Douglas Capital Management, Inc. (A.P. Sept. 30, 2019, Settled)

Action against Respondents, two investment advisers, for alleged failure to disclose conflicts of interest. According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $58,477.87 and prejudgment interest of $1,001.40.

SEC Order
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SEC v. James T. Booth (D. Conn. Sept. 30, 2019, Contested)

Action against Defendant, an investment adviser and broker, for alleged fraud. The SEC alleges that Defendant solicited funds for alternative investments and used the proceeds to make Ponzi-like payments to earlier investors and to pay personal expenses.  Defendant has been charged in a parallel criminal proceeding.

 SEC Complaint

SEC Litigation Release
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In re Outset Global, LLP (A.P. Sept. 30, 2019, Settled)

Action against Respondent, a United Kingdom-based financial services company, for alleged registration failures.  The SEC alleges that Respondent executed transactions on behalf on U.S. institutional clients without registering as a broker-dealer.  Respondent agreed to pay disgorgement of $135,000, prejudgment interest of $22,409.97, and a civil penalty of $50,000.

SEC Order

SEC Administrative Summary
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In re Bill Few Associates, Inc. (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest. According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $2,201,454.07 and prejudgment interest of $191,850.74.

SEC Order
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In re Independent Financial Group, LLC (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest.  According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $1,250,386.58 and prejudgment interest of $175,764.06.

SEC Order
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In re Saxony Capital Management, LLC (A.P. Sept. 30, 2019, Settled)

Action against Respondent, an investment adviser, for alleged failure to disclose conflicts of interest.  According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $212,324.53 and prejudgment interest of $17,896.31.

SEC Order
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In re Schulman Lobel Zand Katzen Williams & Blackman, LLP (A.P. Sept. 30, 2019, Contested); In re Marla P. Manowitz, Thomas R. Vreeland, and Kenneth J. Gralak (A.P. Sept. 30, 2019, Settled)

Actions against Respondents, an auditing firm and three CPAs, for alleged violation of auditing standards. The SEC alleges that Respondents failed to adequately investigate and perform due diligence concerning the audited company’s assertions and records.  One Respondent has agreed to a three-year accounting suspension and to pay a civil penalty of $25,000.  Another Respondent has agreed to a two-year accounting suspension and to pay a civil penalty of $15,000.  A third Respondent has agreed to
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In re Hilltop Securities, Inc., and Hilltop Securities Independent Network, Inc. (A.P. Sept. 30, 2019, Settled)

Action against Respondents, two investment advisers, for alleged failure to disclose conflicts of interest. According to the SEC, Respondent advised clients to purchase higher-cost mutual fund shares without disclosing the financial benefits Respondent received as a result.  Respondent agreed to pay disgorgement of $736,497.48 and prejudgment interest of $74,287.92.

SEC Order
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