Source: https://www.compliance.ai/enforcement-report/june-02-2019/
Timestamp: 2020-05-26 05:51:40
Document Index: 80858436

Matched Legal Cases: ['§ 45', '§ 45', '§ 1818', '§ 1813', '§ 1818', '§ 3106', 'in Fine', 'in Fine', '§ 201', '§ 201', '§ 78']

Financial Enforcement Actions | Week of June 02 to June 07 - Compliance.ai
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Financial Enforcement Actions | Week of June 02 to June 07
June 10, 2019 christian thaure
Respondent: Jeannette Baines
Violation: Jeannette Baines, of Merseyside appeared before Blackpool Magistrates’ Court and was found guilty of obtaining personal data, in breach of s55 of the Data Protection Act 1998... Read More
Respondent: Wendy Masterson
Violation: Ms. Masterson of Stockport appeared before Stockport Magistrates’ Court and pleaded guilty to the offense of unlawfully obtaining personal data, in breach of s55 of the Data Protection Act 1998... Read More
Respondent: Mrs. Sumera Usman
Violation: Mrs. Usman has failed to comply with the regulatory requirement to submit the Return. Mrs Usman has failed to respond adequately to the Authority's repeated requests for her to submit the Return, and has thereby failed to comply with Principle 11 of the Authority's Principles for Businesses and to satisfy the Authority that she is ready, willing and organized to comply with the requirements and standards under the regulatory system... Read More
Respondent: Gary Jackson
Violation: It appears to the Authority that Mr. Jackson is failing to satisfy the suitability Threshold Condition, in that the Authority is not satisfied that Mr. Jackson is a fit and proper person having regard to all the circumstances, including whether Mr. Jackson managed his business in such a way as to ensure that his affairs were conducted in a sound and prudent manner... Read More
Respondent: Scope Leasing Limited
Violation: SLL has failed to comply with the regulatory requirement to submit the Return. SLL has failed to respond adequately to the Authority's repeated requests for it to submit the Return and has thereby failed to comply with Principle 11 of the Authority's Principles for Businesses and to satisfy the Authority that it is ready, willing and organized to comply with the requirements and standards under the regulatory system... Read More
Respondent: Conwell Civil Engineering Limited
Violation: CCEL has failed to comply with the regulatory requirement to submit the Return,CCEL has failed to respond adequately to the Authority's repeated requests for it to submit the Return, and has thereby failed to comply with Principle 11 of the Authority's Principles for Businesses and to satisfy the Authority that it is ready, willing and organized to comply with the requirements and standards under the regulatory system... Read More
Respondent: Staffordshire Property Management, LLC; Aaron Fischer
Violation: Between approximately February 2016 and October 2018, Respondents used, in their form contracts offered to hundreds of prospective renters in the course of processing their applications to rent properties that Respondents manage. Respondents’ form contracts were occurring on or after March 14, 2017, violated Section 2(c) of the CRFA, 15 U.S.C. § 45b(c)... Read More
Respondent: Shore to Please Vacations LLC; Robert Aaron Stephens
Violation: From June 2017 through at least August 2017, Respondents used, in their form contracts offered to prospective customers in the course of renting vacation properties, provision in the “Disclaimers”. Respondents’ form contracts were in effect on or after December 14, 2017. By posting negative reviews in August and September 2017 about their experiences renting Respondents’ vacation properties. Respondents have claimed, in demand letters to those renters, that by breaching the provision each renter is liable to Respondents for $25,000 for “liquidated damages” under the contract, plus attorney’s fees. Therefore, violated Section 2(c) of the CRFA, 15 U.S.C. § 45b(c)... Read More
Respondent: Youlei Tang A.K.A. Alex Tang
Violation: Pursuant to section 8(b) of the FDI Act, 12 U.S.C. § 1818(b), that prior to accepting any position that would cause Tang to become an institution-affiliated party, or upon execution of this Order if Tang is currently an institution-affiliated party, as defined in sections 3(u) and 8(b)(3) of the FDI Act, 12 U.S.C. §§ 1813(u) and 1818(b)(3), of any institution or agency described in section 8(e)(7)(A) of the FDI Act, 12 U.S.C. § 1818(e)(7)(A), including, but not limited to, any insured depository institution or any holding company of an insured depository institution, or any subsidiary of such holding company, or any foreign bank or company to which subsection (a) of 12 U.S.C. § 3106 applies and any subsidiary of such foreign bank or company... Read More
$335,889.03 in Fines
Respondent: Nomura Securities International, Inc.,
Violation: During the period between January 3, 2011 and May 10, 2016 (the "Review Period"), Nomura failed to report and inaccurately reported reportable over-the-counter ("OTC") options positions to the Large Options Position Reporting system ("LOPR") in violation of FINRA Rule 2360(b)(5), and untimely reported options positions to the FINRA Trade Reporting Facility ("TRF") in violation of FINRA Rule 7230A... Read More
Respondent: Lime Brokerage, LLC
Violation: Between November 2013 and February 2016 (the "Relevant Period"), Lime failed to accurately calculate its net capital on six occasions, resulting in a total of 49 net capital deficiencies in amounts ranging from $3,348 to $449,666. Lime also failed to accurately calculate its required customer reserve on one occasion, resulting in a hindsight deficiency of $59,590... Read More
Respondent: James F. Anderson
Violation: Anderson failed to respond to a request for documents and information issued by FINRA Staff pursuant to FINRA Rule 8210. Further, counsel for Anderson has informed and confirmed for FINRA staff that Anderson does not intend to respond to the request or otherwise cooperate with FINRA’s investigation... Read More
Respondent: Carlos Ricardo Fuenmayor
Violation: From approximately September 2013 through February 2015 (the "relevant period"), Fuenmayor, a Director and 20% owner of Dakota, acted as a General Securities Principal and a General Securities Representative without being registered in either capacity, in violation of NASD Rules 1021 and 1031, and FINRA Rule 2010... Read More
Respondent: Alberto Sanchez
Violation: In April 2019, Respondent violated FINRA Rules 8210 and 2010 by not providing documents as requested pursuant to FINRA Rule 8210 in connection with an investigation concerning his involvement in a potential undisclosed outside business activity ("OBA")... Read More
Respondent: Ron Ray Willoughby
Violation: Between July 1, 2012, and December 31, 2014 (the "Relevant Period"), Willoughby engaged in an unsuitable pattern of short-term trading of Unit Investment Trusts in customer accounts. Based on the foregoing, Willoughby violated NASD Rule 2310 (for conduct before July 9, 2012), FINRA Rule 2111 (for conduct on or after July 9, 2012), and FINRA Rule 2010... Read More
Respondent: Jason Nelson
Violation: Nelson refused to provide testimony requested pursuant to FINRA Rule 8210 on the scheduled date or at any time. By virtue of this misconduct, Nelson violates FINRA Rules 8210 and 2010... Read More
Penalties: $15,889.03
Respondent: Manuel Fernandez
Violation: There is no evidence that Respondents conducted the required background checks and securities enforcement regulatory histories on the issuers making offerings on the Portal's platform, or that any third party did so on their behalf, so that they had a "reasonable basis" for believing that issuers and their principals were not disqualified from participating in a crowdfunding securities offering. We find that Respondents violated Crowdfunding Rule 301(c)(1), and thereby violated Funding Portal Rule 200(a)... Read More
Respondent: Robert W. Baird & Co. Incorporated
Violation: Between late April and early July 2013, Baird published seven research reports about Issuer A without disclosing that RA, the research analyst who authored the reports, was engaged in employment discussions with Issuer A that constituted an actual, material conflict of interest. The Firm thereby violated NASD Rules 2711(h)(1)(C) and 2711(h)(9) and FINRA Rule 2010... Read More
Respondent: Freedom Mortgage Corporation
Violation: Freedom violated HMDA and Regulation C by submitting mortgage-loan data for 2014 to 2017 that contained errors... Read More
$44,267,162.00 in Fines
Penalties: $1,495,782.00
Violation: Hocker falsely promised investors guaranteed returns of between 10% and 30% from investments he would make on their behalf in the S&P 500 and other unspecified investment vehicles. In actuality, however, Hocker did not invest any of the investors' funds. Instead, he used the money for his own personal expenses... Read More
Penalties: $1,278,715.00
Respondent: TelexFree, Inc. et al
Violation: Faith Sloan, an Illinois resident, violated the registration provisions of Section 5 of the Securities Act of 1933... Read More
Respondent: Covalent Collective, Inc.
Violation: Doyen repeatedly refused to produce any documents in response to the subpoena, notwithstanding multiple efforts by the SEC to secure its compliance... Read More
Respondent: Michel T. Rand
Violation: Rand was found guilty of, charges of conspiracy to: (a) commit securities and wire fraud, (b) make false or misleading statements to auditors and accountants, (c) circumvent Beazer’s internal accounting controls, and (d) falsify books, records, and accounts of Beazer. Therefore, Rand has been convicted of a felony within the meaning of Rule 102(e)(2)... Read More
Penalties: $5,250,000.00
Respondent: Deer Park Road Management Company, LP; Cott E, Burg
Violation: Violated the Compliance Rule by Deer Park by failing to adopt and implement reasonably designed compliance policies and procedures relating to valuation of fund assets... Read More
Penalties: $151,010.00
Respondent: Joseph Palermo
Violation: From January 2013 to February 2015, Palermo benefitted from a manipulative trading scheme carried out by his long-time friend, a day trader (“Trader A”), that generally involved Trader A placing multiple buy orders for a security, at multiple trading venues and multiple price levels, at and above prevailing market prices, for the purpose of creating a false appearance of buy interest at those price levels and raising the price in that security, and thus enabling Trader A to sell the same security at artificially inflated prices... Read More
Penalties: $257,344.00
Respondent: Anthony Savino
Violation: From January 2013 to February 2015, Savino, a full-time day trader, carried out a manipulative trading scheme that generally involved Savino placing multiple buy orders for a security, at multiple trading venues and multiple price levels, at and above prevailing market prices, for the purpose of creating a false appearance of buy interest at those price levels and raising the price in that security, and thus enabling Savino to sell the same security at artificially inflated prices... Read More
Respondent: Einstein Investments LLC
Violation: In November 2018, the SEC issued a subpoena to Einstein for the production of documents. According to the SEC's application, Einstein has failed to produce any documents responsive to this subpoena... Read More
Respondent: Pinnacle Accountancy Group, PLLC ; Douglas W. Child, CPA
Violation: Failure by Pinnacle to register with the Public Company Accounting Oversight Board (the “PCAOB” or the “Board”), as required by Section 102(a) of the Sarbanes-Oxley Act of 2002 (“SOX”)3 and Child’s willful aiding and abetting of Pinnacle’s registration violation of Section 102(a) of SOX... Read More
Respondent: Kik Interactive
Violation: The SEC's complaint charges Kik Interactive Inc. with violating the registration requirements of Section 5 of the Securities Act of 1933. The SEC seeks a permanent injunction, disgorgement plus interest, and a penalty... Read More
Violation: Pursuant to Section 15(b)(6) of the Exchange Act, and Section 203(f) of the Advisers Act, that Respondent be, and hereby is barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization... Read More
Penalties: $3,151,031.00
Respondent: Quantek Asset Management LLC, Bulltick Capital Markets Holdings, LP, Janier Guerra, and Ralph Patino
Violation: The Plan provides for the transfer of the funds in the Fair Fund to the general fund of the United States Treasury, subject to Exchange Act Section 21F(g)(3) within (30) calendar days of Commission approval of the Plan, in accordance with Rule 1102(b) of the Commission’s Rules, 17 C.F.R. § 201.1102(b) and the termination of the Fair Fund. Accordingly, it is hereby ORDERED, that pursuant to Rule 1104 of the Commission’s Rules, 17 C.F.R. § 201.1104, the Plan is approved as published... Read More
Penalties: $32,653,280.00
Respondent: "Evergreen Investment Management Company LLC; Evergreen Investment Services Inc., Evergreen Service Company, LLC ; and Wachovia Securities, LLC"
Violation: The remaining Fair Fund balance of $223.16 and any funds returned to the Fair Fund in the future, shall be transferred to the U.S. Treasury, subject to Section 21F(g)(3) of the Securities Exchange Act of 1934, 15 U.S. Code § 78u-6(g)(d)... Read More
Penalties: $194,454,692.00
Respondent: Computer Sciences Corporation; Michael Laphen; Michael Mancuso; Wayne Banks; Claus Zilmer; and Paul Wakefield
Violation: The Commission staff shall disburse $194,454,692 from the Fair Fund to the Fair Fund’s Escrow Account at The Huntington National Bank and that the Fund Administrator shall distribute such monies to harmed investors as provided for in the Plan... Read More