Blog Posts Tagged With SEC

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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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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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 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 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 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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SEC v. Michael J. Starkweather and Andiamo Corporation (E.D.N.Y. Sept. 30, 2019, Contested); SEC v. William White (E.D.N.Y. Aug. 22, 2019, Contested)

Actions against Defendants, a technology company and two former CEOs, for allegedly aiding and abetting manipulative trading in the company’s stock and issuing a press release containing false statements. According to the SEC, Defendant former CEO received kickbacks from a stock promoter in connection with sales designed to artificially increase the price of Defendant corporation’s stock.  The SEC further alleges that the other Defendant former CEO knowingly announced the distribution and development of a smartphone
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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 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 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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SEC v. Bluepoint Investment Counsel, et al. (W.D. Wisc. Sept. 30, 2019, Contested)

Action against Defendants, individuals and investment management firms, for allegedly collecting excessive management fees.  The SEC alleges the Defendants overvalued a private investment fund’s assets and returns, leading to the collection of overstated management fees.  The SEC further alleges failure to disclose potential conflicts of interest in certain transactions, including management fees paid to companies owned by Defendants.

SEC Complaint

SEC Litigation Release
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In re Essex Financial 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 $2,755,879 and prejudgment interest of $230,710.94 with all but disgorgement of $645,000 being subject to potential waiver.

SEC Order
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In re Founders Financial Securities, 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 $1,246,133.60, prejudgment interest of $229,332.28, and a civil penalty of $140,000.

SEC Order

SEC Administrative Summary
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In re Investment Partners, Ltd. (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 $39,418.90 and prejudgment interest of $3,965.91.

SEC Order
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SEC v. David Sechovicz (D. Mass. Sept. 27, 2019, Settled); SEC v. Peter Szatmari (D. Mass. Sept. 27, 2019, Contested)

Actions against Defendants, internet markets, for alleged fraud. The SEC alleges Defendants created fictitious websites, news stories, and testimonials to promote binary option trading brokers and were compensated with referral fees.  Defendant Sechovicz has agreed to pay disgorgement of $1,899,837, prejudgment interest of $83,571, and a civil penalty of $949,918.

SEC Complaint (Sechovicz) 

SEC Complaint (Szatmari)

SEC Litigation Release
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In re Barclays PLC (A.P., Sept. 27, 2019, Settled)

Action against Respondent, a bank holding company, for alleged violations of the books and records and internal controls provisions of the FCPA.  The SEC alleges that Respondent hired relatives and close friends of government officials throughout Asia to acquire business and failed to devise and maintain sufficient controls with respect to its hiring practices.  Respondent has agreed to pay disgorgement of $3,824,686, prejudgment interest of $984,040, and a civil penalty of $1,500,000.

SEC Order

SEC
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In re Amadeus Wealth Advisors, LLC (A.P. Sept. 27, 2019, Settled); In re Three Bridge Wealth Advisors, LLC (A.P. Sept. 27, 2019, Settled)

Actions against Respondents, registered investment advisers, for allegedly violating their own policies regarding proxy voting.  The SEC alleges that Respondents stated in their Form ADV that they did not accept proxy voting authority on behalf of clients, but voted proxy shares.  Respondents have agreed to pay civil penalties of $40,000 and $60,000, respectively.  SEC Order (Amadeus)  SEC Order (Three Bridge)  SEC Administrative Summary
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