March 28, 2012: New York Knicks Basketball Game $1,314.15June 5, 2012: Dinner at Porter House Restaurant $2,700.00July 24, 2012: Dinner at The Palm Restaurant $1,630.54October 25, 2013: Dinner at Avenue Restaurant Group $2,962.25November 23, 2013: Kanye West Concert $6,000.00
Goldman Indictment https://www.justice.gov/usao-nj/press-release/file/1091876/downloadEikenberry Information https://www.justice.gov/usao-nj/press-release/file/1091881/download
In fashioning the appropriate sanctions, FINRA asserts the following in the AWC:Between January 1, 2011 and June 27, 2018 (the "Relevant Period"), Lincoln disadvantaged certain retirement plan and charitable organization customers who were eligible to purchase Class A shares in certain mutual funds without a frontend sales charge ("Eligible Customers"). These Eligible Customers were instead sold Class A shares with a front-end sales charge or Class B or C shares with back-end sales charges and higher ongoing fees and expenses. During this period, Lincoln failed to establish and maintain a supervisory system and written supervisory procedures reasonably designed to ensure that Eligible Customers who purchased mutual fund shares received the benefit of applicable sales charge waivers. As a result, Lincoln violated NASD Conduct Rule 3010 (for misconduct before December 1, 2014), FINRA Rule 3110 (for misconduct on or after December 1, 2014), and FINRA Rule 2010.
In resolving this matter, FINRA has recognized the extraordinary cooperation of Lincoln for: (1) initiating an investigation to identify whether Eligible Customers received sales charge waivers during the Relevant Period, and self-reporting its findings to FINRA; (2) providing restitution to Eligible Customers for a period of seven and one-half years; (3) promptly establishing a plan of remediation for Eligible Customers who did not receive appropriate sales charge waivers; (4) promptly taking action and remedial steps to correct the violative conduct, including by making programming changes to preclude ongoing customer harm as the Firm instituted permanent systems upgrades; and (5) employing subsequent corrective measures, prior to detection or intervention by a regulator, to revise its procedures to avoid recurrence of the misconduct.
Co-conspirator Issah Mohammed then recruited individuals, including Mark Dennis, Charles Mensah, and others, who registered corporate shell entities with the state of Maryland. The recruits then set up bank accounts at multiple banking institutions in the names of these shell entities. Mohammed Kwaning then either directed that the funds from the compromised accounts be wired into the bank accounts opened in the names of the shell entities or provided altered or fabricated checks from compromised accounts to Issah Mohammed. Mohammed then provided the checks to Mark Dennis, Charles Mensah, and the other recruits to be deposited into the shell entities' bank accounts. The recruits would then attempt to withdraw the stolen funds before the banks discovered that the source of the funds were compromised accounts.Some of the accounts were compromised by individuals who called investment firms pretending to be the actual account holders, and then eventually providing enough correct answers in order to reset the password for the account. Individuals also hacked the e-mails of victims and, posing as the account holders, requested funds be wired from their retirement accounts to the bank accounts of the shell corporations controlled by the conspirators. The attempted loss during the nine months of the scheme was over $1.3 million, and the conspirators were able to withdraw over $229,000 of stolen funds, which they then split amongst themselves.Mark Dennis, age 30, of Laurel, Maryland, and Charles Mensah, age 32, of the Bronx, New York, were also convicted at trial and sentenced to 27 months and 30 months in prison, respectively, each followed by five years of supervised release. Issah Mohammed, age 31, of Laurel, previously pleaded guilty to his role in the scheme and is awaiting sentencing.