Blog Posts Tagged With Financial Institutions and Regulated Entities

Subscribe to Financial Institutions and Regulated Entities RSS Feed

In re Foundations Asset Management, LLC, et al. (A.P. July 24, 2019, Settled)

Action against Respondents, an investment advisor and two of its principals, for alleged conflicts of interest and registration violations.  According to the SEC, Respondents recommended that their clients invest in a real-estate fund and failed to disclose their compensation from the same fund.  The SEC further alleges that Respondent investment adviser acted as an unregistered broker in connection with the transactions and made false statements in its SEC filings about the compensation it received from
Continue Reading

In re N. Gary Price (A.P. July 24, 2019, Settled)

Action against Respondent, the principal of a registered investment advisor, for alleged failure to disclose conflicts of interest.  According to the SEC, Respondent advised clients to invest in promissory notes issued by a family of companies in which he had financial interests.  Respondent has agreed to pay disgorgement of $57,945, prejudgment interest of $9,088, and a civil penalty of $75,000, and to various professional bars. SEC Order SEC Administrative Summary
Continue Reading

In re Account Management LLC, et al. (July 19, 2019, Settled)

Action against an investment advisor, its principal, and its founder, for alleged breach of fiduciary duty.  According to the SEC, Respondents induced their client to amend her will, increasing her bequest to a charity that was also a client of Respondents and providing that Respondents would manage most of the donated assets.  Respondent investment advisor, Respondent principal, and Respondent founder have agreed to pay civil penalties of $100,000, $50,000, and $25,000, respectively.

SEC Order
Continue Reading

In re Salus, LP, et al. (A.P. July 17, 2019, Settled)

Action against Respondents, two investment advisors and their founders, for alleged fraud.  According to the SEC, Respondents made various misstatements in Form ADV filings, including claiming that they had assets under management when they had none and were ineligible to register as investment advisors.  The SEC also alleges that Respondents misled prospective clients about the composition and qualifications of their investment-advisory team.  Two Respondent founders have agreed to pay civil penalties of $25,000 each and
Continue Reading

In re Spring Hill Capital Markets, LLC, et al. (A.P. July 16, 2019, Settled)

Action against Respondents, a broker-dealer, two of its affiliates, and its principal, for alleged registration violations.  According to the SEC, Respondents transacted in securities without registering as a broker-dealer and kept inaccurate books and records resulting in a net capital deficiency.  Two Respondent firms have agreed to pay total disgorgement of $460,803.84, and all three Respondent firms have agreed to jointly and severally pay a civil penalty of $25,000.

SEC Order
Continue Reading

In re Dov Weinstein, CPA and Dov Weinstein & Co., CPA (A.P. July 16, 2019, Settled)

Action against Respondents, an accountant and his firm, for alleged professional misconduct.  According to the SEC, Respondents violated PCAOB standards in connection with multiple audits, including by failing to conduct engagement-quality reviews and exercise due care and professional skepticism.  Respondents have agreed to bars against practicing or appearing before the SEC as accountants.

SEC Order

SEC Administrative Summary
Continue Reading

In re Hana Woosuk Byun a/k/a Hana Kevin Byun (A.P. July 16, 2019, Settled)

Action against Respondent, an unregistered investment advisor, for alleged misappropriation of client funds.  According to the SEC, Respondent misappropriated money from the funds he managed for clients to pay personal expenses.  Respondent has agreed to pay a civil penalty of $50,000 and to officer-and-director, investment-advisor, and other bars.

SEC Order
Continue Reading

In re Dale Scott & Company, Inc. (A.P. July 16, 2019, Settled); In re School Services of California, Inc. (A.P. July 16, 2019, Settled); In re G. Wayne Oetken (A.P. July 16, 2019, Settled)

Actions against Respondents, a registered municipal advisor and two unregistered consultants, for alleged registration violations.  According to the SEC, one Respondent consultant engaged the other two Respondents to solicit municipal advisory business when the latter two were not registered as solicitor municipal advisors.  Two Respondents have agreed to pay civil penalties of $10,000 each, and the third has agreed to pay a civil penalty of $25,000.

SEC Order (Dale Scott & Company)

SEC Order (School
Continue Reading

In re Nomura Securities International, Inc. (A.P. July 15, 2019, Settled)

Actions against Respondent, a registered broker-dealer, for alleged misleading statements to customers.  According to the SEC, Respondent’s traders misled customers about the price at which Respondent purchased securities, its profit on their trades, and the current owners of the securities.  Respondent has agreed to pay total disgorgement of $17,463,150, total prejudgment interest of $4,034,909.67, and total civil penalties of $1,500,000.

SEC Order (RMBS)

SEC Order (CMBS)

SEC Press Release
Continue Reading

In re Korea Exchange Inc. (A.P. July 12, 2019, Settled)

Action against Respondent, a South Korea based exchange, for allegedly submitting a misleading certification to the CFTC.  According to the CFTC, Respondent represented that it was in compliance with the requirements of a CFTC exemptive order after it had discovered its policies and practices were inconsistent with the required standards.  Respondent has agreed to pay a civil monetary penalty of $150,000 plus post-judgment interest.

CFTC Order

CFTC Press Release
Continue Reading

In re ADM Investor Services Inc. (A.P. July 12, 2019, Settled)

Action against Respondent, a registered futures commission merchant located in Chicago, for alleged failure to supervise the handling of commodity interest accounts.  According to the CFTC, Respondent’s supervisory system failed to ensure employees and agents executed a number of orders properly.  Respondent has agreed to pay a civil money penalty of $250,000 plus post-judgment interest.

CFTC Order

CFTC Press Release
Continue Reading

In re William Dean Katzelis and Shahin Maleki d/b/a Essex Futures (A.P. July 12, 2019, Settled)

Action against Respondents, a registered guaranteed introducing broker and its principals, for allegedly improperly combining proprietary and customer trades in bunched orders for execution and alleged record-keeping violations.  The CFTC also alleges that Respondents engaged in unauthorized trading by exercising trading discretion over customer accounts for which they did not have powers of attorney or specific authorizations.  Respondents have agreed to pay a civil monetary penalty of $500,000 plus post-judgment interest.

CFTC Order

CFTC Press
Continue Reading

In re Vision Financial Markets LLC (A.P. July 12, 2019, Settled)

Action against Respondent, a securities broker-dealer and former registered futures commission merchant and commodity pool operator, for alleged failure to supervise the handling of commodity interest accounts.  According to the CFTC, Respondent’s supervisory system failed to ensure employees and agents executed a number of orders properly.  Respondent has agreed to pay a civil money penalty of $200,000 plus post-judgment interest.

CFTC Order

CFTC Press Release
Continue Reading

In re Fidelity Transfer Services, Inc. and Ruben Sanchez (A.P. July 10, 2019, Contested)

Action against Respondents, a registered transfer agent and its principal, for allegedly failing to comply with SEC requests for required records, failing to make required SEC filings, and providing false and misleading information to the SEC in filings that were made.

SEC Order

SEC Administrative Summary
Continue Reading

In re Elephas Investment Management Ltd. (A.P. July 2, 2019, Settled)

Action against Respondent, a Hong Kong-based hedge fund, for alleged violation of wheat futures speculative position limits.  According to the CFTC, Respondent held a long position in the Chicago Board of Trade’s December 2017 soft red winter wheat futures contract in excess of the spot month speculative position limit established by the CFTC.  Respondent has agreed to pay a civil money penalty of $160,000 plus post-judgment interest.

CFTC Order

CFTC Press Release
Continue Reading

In re The Parrish Group, LLC and Daryl M. Davis (A.P. July 2, 2019, Settled)

Action against Respondents, a registered investment advisor and its founder, for alleged misrepresentations to clients.  According to the SEC, Respondents misled prospective clients regarding Respondent advisor’s assets under management, its clients, the number and identity of its employees, and its registration status with the SEC.  Respondents have agreed to pay a civil money penalty of $184,767.

SEC Order
Continue Reading

In re Fieldstone Financial Management Group, LLC and Kristofor R. Behn (A.P. July 1, 2019, Settled)

Action against Respondents, an investment advisor and its principal, for alleged fraud.  According to the SEC, Respondents defrauded retail investors by failing to disclose conflicts of interest related to their investment recommendations and misusing investor funds for personal expenses.  Respondents have agreed to pay disgorgement and prejudgment interest of $1,047,971, as well as a penalty of $275,000.

SEC Order

SEC Press Release
Continue Reading

In re Thomas Chang, CPA (A.P. July 1, 2019, Settled)

Action against Respondent, an accountant at an auditing firm, for alleged violations of the auditor independence rules.  According to the SEC, Respondent audited public shell companies and issued reports stating they were performed independently despite the fact that these companies were within the control of a company with which his firm had a business relationship.  Respondent has agreed to pay disgorgement of $13,000, prejudgment interest of $1,590.45, and a civil money penalty of $13,000.

SEC
Continue Reading

SEC v. Paul Andrews Rinfret, et al. (S.D.N.Y. June 28, 2019, Contested)

Action against Defendants, an investment fund and its principal, and relief defendant, the fund’s affiliate, for alleged fraud.  According to the SEC, Defendants solicited investor funds based on false claims of returns and other misrepresentations.  The SEC further alleges that Defendant principal misappropriated investor funds and issued false account statements to conceal the scheme.  Defendant principal has been charged in a parallel criminal case.

SEC Complaint

SEC Litigation Release
Continue Reading

In re State Street Bank and Trust Company (A.P. June 27, 2019, Settled)

Action against Respondent, a financial services company, for alleged overcharges to clients.  According to the SEC, Respondent’s mutual fund and other registered investment company clients agreed to reimburse certain out-of-pocket expenses that Respondent as custodian incurred on the clients’ behalf.  The SEC alleges that Respondent routinely charged clients more than its actual expenses.  Respondent has agreed to pay disgorgement of $48,473,242, prejudgment interest of $307,619, and a civil penalty of $40 million.

SEC Order

SEC
Continue Reading

SEC v. Comer Capital Group, LLC, and Brandon Comer (N.D. Ill. June 27, 2019, Contested); In re IFS Securities (A.P. June 27, 2019, Settled)

Actions against Defendants, a municipal advisor and its principal, and Respondent, a broker-dealer, for alleged breach of fiduciary duty and violation of Municipal Securities Rulemaking Boards rules.  According to the SEC, Respondent negligently sold bonds below market value on behalf of a public library district, and Defendant failed to properly advise the library district regarding its engagement with Respondent and the pricing of the bonds.  Respondent has agreed to pay a civil penalty of $50,000.
Continue Reading

In re Wedbush Securities, Inc. (A.P. June 18, 2018, Settled)

Action against Respondent, a registered broker-dealer, in connection with an industry-wide sweep into practices related to the pre-release of American Depositary Receipts (ADRs).  According to the SEC, Respondent obtained pre-released ADRs from depositary banks pursuant to an agreement which required the broker receiving the pre-released ADRs to represent, among other things, that it beneficially owned the ordinary shares (or an equivalent security) represented by the ADRs.  The SEC alleges that Respondent’s brokers and customers did
Continue Reading

LexBlog