In re Block.one (A.P. Sept. 30, 2019, Settled)

Action against Respondent, a blockchain company, for an alleged unregistered offering.  The SEC alleges that Respondent sold electronic tokens through an initial coin offering without registering or securing an exemption from registration.  Respondent has agreed to pay a civil penalty of $24,000,000.

SEC Order
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CFTC v. Jon Barry Thompson (S.D.N.Y. Sept. 30, 2019, Contested)

Action against Defendant, the principal of a Bitcoin escrow company, for alleged fraud. According to the CFTC, Defendant induced customers to send him funds for the purchase of Bitcoin based on false representations that he already had the Bitcoin in hand.  The CFTC further alleges that Defendant misappropriated the customers’ funds and failed to deliver the promised Bitcoin.

CFTC Press Release

CFTC Complaint
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In re Virtu Americans, LLC (A.P. Sept. 30, 2019, Settled)

Action against Respondent, a “dark pool” trading company, for alleged violation of Regulation SCI.  According to the SEC, Respondent operated an alternative trading system subject to Regulation SCI but failed to establish policies and procedures, file annual and quarterly reports, conduct an annual compliance review, comply with business-continuity and disaster-recovery plan requirements, and maintain books and records as required by the regulation.  Respondent has agreed to pay a civil penalty of $1,500,000.

SEC Order

SEC
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In re Michigan Advisors, 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 $295,580.55 and prejudgment interest of $32,396.17.

SEC Order
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In re Comprehensive Capital 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 has agreed to pay disgorgement of $83,401.41 and prejudgment interest of $10,230.70.

SEC Order
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In re Coby Tresner (A.P. Sept. 30, 2019, Settled)

Action against Respondent, a commodities floor broker, for alleged unauthorized trading and misappropriation.  According to the CFTC, Respondent falsely represented to clients that he was a registered commodity trading adviser and associated person of a registered introducing broker.  The CFTC further alleges that Respondent misappropriated client funds to pay personal expenses.  Respondent has agreed to pay a civil penalty of $250,000, restitution of $55,000, and post-judgment interest, and to permanent trading and registration bars.

CFTC
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In re Equity Services, 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 $535,240.67 and prejudgment interest of $51,777.05.

SEC Order
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In re IC Advisory Services, 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 $1,052,473.03 and prejudgment interest of $142,713.17.  

SEC Order
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In re Mid Atlantic Financial 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 $900,069 and prejudgment interest of $126,933.

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

Action against Respondent, a Luxembourg-based agribusiness, for alleged failure to comply with Regulation 19.01, which requires disclosure when a legal person holds certain agricultural futures in a hedging position.  According to the CFTC, Respondents held or controlled soybean futures that were hedging positions but failed to file the necessary disclosure forms.  Respondent has agreed to pay a civil penalty of $175,000.

CFTC Order

CFTC Press Release
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In re Liora Welles (A.P. Sept. 30, 2019, Settled); In re Yair Hadar (A.P. Sept. 30, 2019, Settled); In re Shira Uzan (A.P. Sept. 30, 2019, Settled)

Actions against Respondents, three retention agents for an Israel-based binary-options firm, for allegedly soliciting customers to enter into illegal and off-exchange binary option transactions.  According to the CFTC, Respondents misrepresented the nature of the binary option trades they offered and falsely stated that most customers’ trades were profitable when in fact most customers lost money.  Respondents have entered into cooperation agreements with the CFTC and have agreed to permanent trading and registration bars.  Respondents have
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In re IPG Investment Advisors, 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 $76,962.71 and prejudgment interest of $8,331.61.

SEC Order
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