Securities Industry Commentator by Bill Singer Esq WEEK IN REVIEW
December 17, 2017
http://www.rrbdlaw.com/3722/securities-industry-commentator/
In today's
Securities Industry Commentator feed:
In
the Matter of Justin D. Meadlin, Respondent (Order Instituting Administrative Proceedings, Making Findings,
and Imposing Remedial Sanctions; Invest. Adv. Act Rel No. 4827' Admin. Proc.
File No. 3-18309 / December 13, 2017) Meadlin
was the co-founder, managing member, Chief Operating Officer and Chief
Financial Officer of investment advisory firm Hyaline Capital Management, LLC.,
which was SEC-registered from May 2014 until August 2015, when Meadlin withdrew
its registration. In anticipation of the institution of proceedings by the SEC
but without admitting or denying the findings, Meadlin submitted an Offer of
Settlement, which the federal regulator accepted and, accordingly, imposed upon
Meadlin a Bar from association with any broker, dealer, investment adviser,
municipal securities dealer, municipal advisor, transfer agent, or nationally
recognized statistical rating organization, with the right to apply for reentry
after five years to the appropriate self-regulatory organization, or if there
is none, to the Commission.
Two Los Angeles-Area Managers of
Foreclosure Rescue Companies Convicted for Roles in Mortgage Fraud Scheme
(DOJ Press Release) After a one-week trial, Jamie Matsuba, 33, and her father,
Thomas Matsuba, 67, were convicted by a federal jury of conspiracy to commit
wire fraud, making false statements to federally insured banks and committing
identity theft in connection with their roles in a foreclosure rescue scheme.
Dorothy Matsuba and Jane Matsuba-Garcia previously pleaded guilty and are
awaiting sentencing. Defendant Young
Park is a fugitive.
U Can't Touch This PERFECT FINRA
Suitability Arbitration Decision (BrokeAndBroker.com Blog) It's Hammer
Time! A FINRA arbitrator just penned a Decision about a suitability case that's
so close to perfection that . . . well . . . you know . . . u can't touch
this!! Ya got yer content. Ya got yer
context. Ya got understandable explanations. Frankly, the BrokeAndBroker.com
Blog's publisher Bill Singer is having a throw-back Friday and dancin' around
in shiny gold Hammer pants. Bill's bustin' quite the lawyerly moves this
morning. Okay, so, sure, not exactly a sight for sore eyes but at least Bill
didn't arrive to work today astride a horse called Sassy
Nigerian
Man Sentenced To 41 Months In Prison For Participating In Business Email
Compromise Scams (DOJ Press Release) David Chukwuneke Adindu was sentenced
to 41 months in federal prison and ordered to pay over $1.4 million in
restitution for participating in a wire fraud conspiracy and identity theft
conspiracy that targeted thousands of victims with the intent to defraud over
$25 million.
http://www.rrbdlaw.com/3720/securities-industry-commentator/
In today's
Securities Industry Commentator feed:
Justice
Department Announces Charges and Guilty Pleas in Three Computer Crime Cases
Involving Significant DDoS Attacks / Defendants Responsible for Creating
"Mirai" and Clickfraud Botnets, Infecting Hundreds of Thousands of IoT Devices
with Malicious Software (DOJ
Press Release) Paras Jha, Josiah White, and Dalton Norman pled guilty to
criminal Informations charging them each with conspiracy to violate the
Computer Fraud & Abuse Act in operating the Mirai Botnet, which in the
summer and fall of 2016, targeted non-traditional computing devices that were
connected to the Internet, including wireless cameras, routers, and digital
video recorders. At its peak, Mirai
consisted of hundreds of thousands of compromised devices used to conduct
distributed denial-of-service ("DDOS") attacks. READ the FULL TEXT Plea
Agreements and Informations.
Jacksonville Man Pleads Guilty To
Manufacturing And Possessing Counterfeit Federal Reserve Notes (DOJ
Press Release) James Edward Langford, IV pled guilty to manufacturing and
possessing counterfeit Federal Reserve notes and now faces a maximum penalty of
40 years in federal prison, forfeiture of the computer media used to
manufacture the counterfeit notes, and payment of restitution.
Chicago Investment Manager Indicted on
Federal Fraud Charges for Allegedly Swindling $10 Million from Clients and
Lenders (DOJ Press Release) Shawn Baldwin pleaded not guilty to a
federal indictment asserting eight counts of wire fraud. READ the FULL-TEXT
Indictment.
The FINRA Gestalt
(BrokeAndBroker.com Blog) The word "gestalt" means something made of
many parts but whose wholeness is more than or different from the mere sum of
those parts. When it comes to the self-regulation of Wall Street, the Financial
Industry Regulatory Authority seems to have a penchant for gestalt. FINRA loves
to knit together a number of seemingly harmless acts into a patchwork quilt
that takes on the appearance of something more ominous. The parts add up to a
violation even if each part, taken on its own, may not. Sometimes there is a
compelling gestalt and FINRA's right. Other times, it's nonsense like that
canvass in the modern art gallery that's been painted white and someone tells
you it depicts man's inhumanity to man presented against a landscape of moral
ambiguity . . . and it's yours for $3.5 million (will that be cash or check?).
Former Professional Football Player
Sentenced to 40 Years for Running $10 Million Fraud (SEC Litigation
Release 24009) Sherman C. Vaughn Jr., former Philadelphia Eagle Merrill Robertson
Jr., and their company Cavalier Union Investments LLC, promised to invest in
diversified holdings but diverted nearly $6 million of the more than $10
million they raised from investors to pay for personal expenses and used other
funds to repay earlier investors. Both men were named in an SEC Complaint and
in federal criminal charges. Robertson was convicted on August 24, 2017 and
sentenced to 40 years in prison. Vaughn pled guilty and was also sentenced to
40 years in prison. The SEC's case was stayed pending the completion of
Robertson's criminal trial but is now ongoing. READ the FULL TEXT SEC
Complaint.
http://www.rrbdlaw.com/3719/securities-industry-commentator/
In today's
Securities Industry Commentator feed:
United
States of America v. Akayed Ullah, Defendant (Complaint,
United States District Court for the Southern District of New York, 17-MAG-9200
) In connection with his alleged December 11, 2017, bombing in the New York
City subway system, Ullah is charged with Provision of Material Support and
Resources to a Designated Foreign Terrorist Organization; Use of Weapons of
Mass Destruction; Bombing a Place of Public Use; Destruction of Property by
Means of Fire or Explosive; and Use of a Destructive Device During and in
Furtherance of a Crime of Violence. READ the FULL TEXT Complaint
Federal Court Orders Kevin Michael Symons
of Foot Hill Ranch, California and His Firm, FTS Financial, Inc., to Pay over
$5 Million Total for Fraud and Jerry Austin Simmons of Charlotte, North
Carolina to Pay $360,000 for Fraud and Failure to Register with the CFTC (CFTC Release pr7659-17) CFTC wins Consent Orders against Defendants
Kevin Michael Symons and his company, FTS Financial, Inc. (FTS); and Jerry
Austin Simmons based upon allegations of their fraudulently promoting Simmons'
"Real Time Trade Room." CFTC alleged that the purported online futures
"trading" forum claimed it was offering a way to observe Simmons trading
futures contracts "live." Although Simmons allegedly solicited clients to open
managed futures trading accounts, he was not CFTC-registered as as an
Associated Person of a Commodity Trading Advisor. FTS will pay $2.4 million
disgorgement and a $2.4 million civil monetary penalty; Symons to pay $289,000
disgorgement and a $100,000 civil monetary penalty; and Simmons to pay $180,000
disgorgement and a $180,000 civil monetary penalty. The Orders impose permanent
trading and registration bans and a permanent injunction. READ FULL-TEXT:
Simmons Consent Order; and FTS/Symons Consent Order.
FINRA Arbitrator Holds Public Customer
Claimant In Contempt (BrokeAndBroker.com
Blog)I'm one of those cranky bastards who doesn't like to be kept waiting. If I
have an appointment, I tend to arrive a bit early. My time is valuable -- as is
yours; worse, I make a living by charging by the hour. Consequently, when I
came upon a recent FINRA arbitration in which a public customer had filed his
lawsuit in 2015, I understood the likely seething anger of the FINRA
arbitrator, the respondents, and their lawyers when Claimant attempted to
cancel a previously scheduled hearing the day before it was to be conducted. To
be clear and fair, life is messy and sometimes we are forced to deal with stuff
that requires us to move meetings or cancel appointments. On the other hand, if
you're going to ask for a last-minute cancellation of an event where numerous
other folks have altered their schedule in response to your lawsuit, you sure
as hell better have a compelling reason. Moreover, even if a party can't make
it to the hearing, his or her lawyer should at least extend the courtesy of
showing up to offer apologies and explanations. Consider a recent FINRA
arbitration in which a whole mess of folks are sitting on their hands in
Minneapolis, Minnesota on October 24, 2017, waiting for a Claimant and his
lawyer to appear at a FINRA arbitration.
SEC Charges Biopharmaceutical Company With
Failing to Properly Disclose Perks for Executives Former CEO and CFO Also
Charged (SEC Press Release
2017-229) The SEC charged
biopharmaceutical company Provectus with accounting controls and disclosure
violations, including the failure to properly report as compensation millions
of dollars in perks provided to then-CEO Dr. H. Craig Dees and then-CFO Peter R. Culpepper. Without
admitting or denying the SEC's findings, Provectus and Culpepper consented to
separate cease-and-desist orders; and Culpepper agreed to pay $152,376 in
disgorgement and interest, a civil penalty, and to be suspended from appearing
and practicing before the SEC as an accountant, which includes not
participating in the financial reporting or audits of public companies with
permission to re-apply for reinstatement after three years. Separately, the SEC
charged Dees and seeks an injunction, disgorgement plus interest, penalties,
and an officer-and-director bar. READ
the Provectus Order; the Culpepper Order; and the Dees Complaint.
http://www.rrbdlaw.com/3717/securities-industry-commentator/
In today's
Securities Industry Commentator feed:
Company
Halts ICO After SEC Raises Registration Concerns (SEC Press
Release 2017-227) The SEC Press Release says that Munchee halted its initial
coin offering ("ICO") after being contacted by the SEC, and without
admitting or denying the findings, agreed to an order finding that its conduct
constituted unregistered securities offers and sales. READ the FULL TEXT OIP In
the Matter of Munchee Inc., Respondent (Order
Institutuing Cease-And-Desist Proceedings and Making Findings; '33 Act
Release No. 10445; Admin. Proc. File No. 3-18304 / December 11, 2017)
Romanian Man Sentenced for Role in
International Fraud Scheme Involving Online Marketplace Websites (DOJ
Press Release) After previously pleading guilty to conspiracy to commit bank
and wire fraud, Vlad Diaconu, was sentenced to 29 months in prison and ordered
to pay $834,841.75 in restitution for his participation in an international
scheme involving fraudulent advertisements on online marketplaces that induced
victims to send over $870,000 to conspirators for the purchase of various items
that were not actually available for purchase.
READ the FULL TEXT DOJ Press Release.
IBERIABANK Agrees to Pay Over $11.6 Million
to Resolve Alleged False Claims Act Liability for Submitting False Claims for
Loan Guarantees (DOJ Press Release) Former Iberiabank employees Kelley
R. Shackleford and Karen Mills, who were employed with IBERIABANK filed claims
under the False Claims Act ("FCA") against their firm and will now
receive a 20% of any resulting recovery arising out of IBERIABANK Corporation,
IBERIABANK and IBERIABANK Mortgage Company (collectively, IBERIABANK) agreement
to pay the United States $11,692,149 to resolve the FCA allegations.
Stock Trader Charged in Insider Trading
Ring (SEC Press Release 2017-228) According to the SEC Press Release,
the federal regulator charged a former day trader Joseph Sera with making more
than $1 million in illegal insider trading profits as part of a ring that
allegedly stole confidential information from investment banks and clients so
they could trade in advance of secondary stock offerings. A parallel federal
criminal action against Spera, who agreed to plead guilty. Previously, Paul
Petrello, Steven Costantin, and Ronald Chernin pleaded guilty in the criminal
actions and agreed to partial settlements in the SEC cases with potential
monetary sanctions to be determined at a later date. Litigation continues against the alleged ringleader
Steven Fishoff. READ the FULL TEXT Plaintiff, v. Joseph Spera and Joleine, Inc.,
Defendants (Complaint, 17-CV-12875, United States District Court for the
District of New Jersey).
Season's Greetings From FINRA. You're Fined And Suspended. Ho, Ho, Ho (BrokeAndBroker.com Blog) We're nearing year-end and for many industry employees that means another cycle of annual compliance disclosures is on its way. You will get the office memo about how you need to make time to sit down at the computer and click your way through a batch of "YES" and "NO" responses about all sorts of events that may or may not have happened to you during the past year. Then there are those other queries about whether you engaged in this type of activity or have any of the following such-and-such outside accounts or if you were named in some legal proceeding. Year after year it's pretty much the same nonsense, as you would put it. The thing is, you may not have considered that you never disclosed something a few years ago because you didn't realize that you had to -- and you're continuing to answer "NO" when you should answer "YES." Then there's that other bit of language on the Securities Industry Commentator: A legal, regulatory, and compliance feed curated by veteran Wall Street lawyer Bill Singer.
http://www.rrbdlaw.com/3722/securities-industry-commentator/
In today's
Securities Industry Commentator feed:
In
the Matter of Justin D. Meadlin, Respondent (Order Instituting Administrative Proceedings, Making Findings,
and Imposing Remedial Sanctions; Invest. Adv. Act Rel No. 4827' Admin. Proc.
File No. 3-18309 / December 13, 2017) Meadlin
was the co-founder, managing member, Chief Operating Officer and Chief
Financial Officer of investment advisory firm Hyaline Capital Management, LLC.,
which was SEC-registered from May 2014 until August 2015, when Meadlin withdrew
its registration. In anticipation of the institution of proceedings by the SEC
but without admitting or denying the findings, Meadlin submitted an Offer of
Settlement, which the federal regulator accepted and, accordingly, imposed upon
Meadlin a Bar from association with any broker, dealer, investment adviser,
municipal securities dealer, municipal advisor, transfer agent, or nationally
recognized statistical rating organization, with the right to apply for reentry
after five years to the appropriate self-regulatory organization, or if there
is none, to the Commission.
Two Los Angeles-Area Managers of
Foreclosure Rescue Companies Convicted for Roles in Mortgage Fraud Scheme
(DOJ Press Release) After a one-week trial, Jamie Matsuba, 33, and her father,
Thomas Matsuba, 67, were convicted by a federal jury of conspiracy to commit
wire fraud, making false statements to federally insured banks and committing
identity theft in connection with their roles in a foreclosure rescue scheme.
Dorothy Matsuba and Jane Matsuba-Garcia previously pleaded guilty and are
awaiting sentencing. Defendant Young
Park is a fugitive.
U Can't Touch This PERFECT FINRA
Suitability Arbitration Decision (BrokeAndBroker.com Blog) It's Hammer
Time! A FINRA arbitrator just penned a Decision about a suitability case that's
so close to perfection that . . . well . . . you know . . . u can't touch
this!! Ya got yer content. Ya got yer
context. Ya got understandable explanations. Frankly, the BrokeAndBroker.com
Blog's publisher Bill Singer is having a throw-back Friday and dancin' around
in shiny gold Hammer pants. Bill's bustin' quite the lawyerly moves this
morning. Okay, so, sure, not exactly a sight for sore eyes but at least Bill
didn't arrive to work today astride a horse called Sassy
Nigerian
Man Sentenced To 41 Months In Prison For Participating In Business Email
Compromise Scams (DOJ Press Release) David Chukwuneke Adindu was sentenced
to 41 months in federal prison and ordered to pay over $1.4 million in
restitution for participating in a wire fraud conspiracy and identity theft
conspiracy that targeted thousands of victims with the intent to defraud over
$25 million.
http://www.rrbdlaw.com/3720/securities-industry-commentator/
In today's
Securities Industry Commentator feed:
Justice
Department Announces Charges and Guilty Pleas in Three Computer Crime Cases
Involving Significant DDoS Attacks / Defendants Responsible for Creating
"Mirai" and Clickfraud Botnets, Infecting Hundreds of Thousands of IoT Devices
with Malicious Software (DOJ
Press Release) Paras Jha, Josiah White, and Dalton Norman pled guilty to
criminal Informations charging them each with conspiracy to violate the
Computer Fraud & Abuse Act in operating the Mirai Botnet, which in the
summer and fall of 2016, targeted non-traditional computing devices that were
connected to the Internet, including wireless cameras, routers, and digital
video recorders. At its peak, Mirai
consisted of hundreds of thousands of compromised devices used to conduct
distributed denial-of-service ("DDOS") attacks. READ the FULL TEXT Plea
Agreements and Informations.
Jacksonville Man Pleads Guilty To
Manufacturing And Possessing Counterfeit Federal Reserve Notes (DOJ
Press Release) James Edward Langford, IV pled guilty to manufacturing and
possessing counterfeit Federal Reserve notes and now faces a maximum penalty of
40 years in federal prison, forfeiture of the computer media used to
manufacture the counterfeit notes, and payment of restitution.
Chicago Investment Manager Indicted on
Federal Fraud Charges for Allegedly Swindling $10 Million from Clients and
Lenders (DOJ Press Release) Shawn Baldwin pleaded not guilty to a
federal indictment asserting eight counts of wire fraud. READ the FULL-TEXT
Indictment.
The FINRA Gestalt
(BrokeAndBroker.com Blog) The word "gestalt" means something made of
many parts but whose wholeness is more than or different from the mere sum of
those parts. When it comes to the self-regulation of Wall Street, the Financial
Industry Regulatory Authority seems to have a penchant for gestalt. FINRA loves
to knit together a number of seemingly harmless acts into a patchwork quilt
that takes on the appearance of something more ominous. The parts add up to a
violation even if each part, taken on its own, may not. Sometimes there is a
compelling gestalt and FINRA's right. Other times, it's nonsense like that
canvass in the modern art gallery that's been painted white and someone tells
you it depicts man's inhumanity to man presented against a landscape of moral
ambiguity . . . and it's yours for $3.5 million (will that be cash or check?).
Former Professional Football Player
Sentenced to 40 Years for Running $10 Million Fraud (SEC Litigation
Release 24009) Sherman C. Vaughn Jr., former Philadelphia Eagle Merrill Robertson
Jr., and their company Cavalier Union Investments LLC, promised to invest in
diversified holdings but diverted nearly $6 million of the more than $10
million they raised from investors to pay for personal expenses and used other
funds to repay earlier investors. Both men were named in an SEC Complaint and
in federal criminal charges. Robertson was convicted on August 24, 2017 and
sentenced to 40 years in prison. Vaughn pled guilty and was also sentenced to
40 years in prison. The SEC's case was stayed pending the completion of
Robertson's criminal trial but is now ongoing. READ the FULL TEXT SEC
Complaint.
http://www.rrbdlaw.com/3719/securities-industry-commentator/
In today's
Securities Industry Commentator feed:
United
States of America v. Akayed Ullah, Defendant (Complaint,
United States District Court for the Southern District of New York, 17-MAG-9200
) In connection with his alleged December 11, 2017, bombing in the New York
City subway system, Ullah is charged with Provision of Material Support and
Resources to a Designated Foreign Terrorist Organization; Use of Weapons of
Mass Destruction; Bombing a Place of Public Use; Destruction of Property by
Means of Fire or Explosive; and Use of a Destructive Device During and in
Furtherance of a Crime of Violence. READ the FULL TEXT Complaint
Federal Court Orders Kevin Michael Symons
of Foot Hill Ranch, California and His Firm, FTS Financial, Inc., to Pay over
$5 Million Total for Fraud and Jerry Austin Simmons of Charlotte, North
Carolina to Pay $360,000 for Fraud and Failure to Register with the CFTC (CFTC Release pr7659-17) CFTC wins Consent Orders against Defendants
Kevin Michael Symons and his company, FTS Financial, Inc. (FTS); and Jerry
Austin Simmons based upon allegations of their fraudulently promoting Simmons'
"Real Time Trade Room." CFTC alleged that the purported online futures
"trading" forum claimed it was offering a way to observe Simmons trading
futures contracts "live." Although Simmons allegedly solicited clients to open
managed futures trading accounts, he was not CFTC-registered as as an
Associated Person of a Commodity Trading Advisor. FTS will pay $2.4 million
disgorgement and a $2.4 million civil monetary penalty; Symons to pay $289,000
disgorgement and a $100,000 civil monetary penalty; and Simmons to pay $180,000
disgorgement and a $180,000 civil monetary penalty. The Orders impose permanent
trading and registration bans and a permanent injunction. READ FULL-TEXT:
Simmons Consent Order; and FTS/Symons Consent Order.
FINRA Arbitrator Holds Public Customer
Claimant In Contempt (BrokeAndBroker.com
Blog)I'm one of those cranky bastards who doesn't like to be kept waiting. If I
have an appointment, I tend to arrive a bit early. My time is valuable -- as is
yours; worse, I make a living by charging by the hour. Consequently, when I
came upon a recent FINRA arbitration in which a public customer had filed his
lawsuit in 2015, I understood the likely seething anger of the FINRA
arbitrator, the respondents, and their lawyers when Claimant attempted to
cancel a previously scheduled hearing the day before it was to be conducted. To
be clear and fair, life is messy and sometimes we are forced to deal with stuff
that requires us to move meetings or cancel appointments. On the other hand, if
you're going to ask for a last-minute cancellation of an event where numerous
other folks have altered their schedule in response to your lawsuit, you sure
as hell better have a compelling reason. Moreover, even if a party can't make
it to the hearing, his or her lawyer should at least extend the courtesy of
showing up to offer apologies and explanations. Consider a recent FINRA
arbitration in which a whole mess of folks are sitting on their hands in
Minneapolis, Minnesota on October 24, 2017, waiting for a Claimant and his
lawyer to appear at a FINRA arbitration.
SEC Charges Biopharmaceutical Company With
Failing to Properly Disclose Perks for Executives Former CEO and CFO Also
Charged (SEC Press Release
2017-229) The SEC charged
biopharmaceutical company Provectus with accounting controls and disclosure
violations, including the failure to properly report as compensation millions
of dollars in perks provided to then-CEO Dr. H. Craig Dees and then-CFO Peter R. Culpepper. Without
admitting or denying the SEC's findings, Provectus and Culpepper consented to
separate cease-and-desist orders; and Culpepper agreed to pay $152,376 in
disgorgement and interest, a civil penalty, and to be suspended from appearing
and practicing before the SEC as an accountant, which includes not
participating in the financial reporting or audits of public companies with
permission to re-apply for reinstatement after three years. Separately, the SEC
charged Dees and seeks an injunction, disgorgement plus interest, penalties,
and an officer-and-director bar. READ
the Provectus Order; the Culpepper Order; and the Dees Complaint.
http://www.rrbdlaw.com/3717/securities-industry-commentator/
In today's
Securities Industry Commentator feed:
Company
Halts ICO After SEC Raises Registration Concerns (SEC Press
Release 2017-227) The SEC Press Release says that Munchee halted its initial
coin offering ("ICO") after being contacted by the SEC, and without
admitting or denying the findings, agreed to an order finding that its conduct
constituted unregistered securities offers and sales. READ the FULL TEXT OIP In
the Matter of Munchee Inc., Respondent (Order
Institutuing Cease-And-Desist Proceedings and Making Findings; '33 Act
Release No. 10445; Admin. Proc. File No. 3-18304 / December 11, 2017)
Romanian Man Sentenced for Role in
International Fraud Scheme Involving Online Marketplace Websites (DOJ
Press Release) After previously pleading guilty to conspiracy to commit bank
and wire fraud, Vlad Diaconu, was sentenced to 29 months in prison and ordered
to pay $834,841.75 in restitution for his participation in an international
scheme involving fraudulent advertisements on online marketplaces that induced
victims to send over $870,000 to conspirators for the purchase of various items
that were not actually available for purchase.
READ the FULL TEXT DOJ Press Release.
IBERIABANK Agrees to Pay Over $11.6 Million
to Resolve Alleged False Claims Act Liability for Submitting False Claims for
Loan Guarantees (DOJ Press Release) Former Iberiabank employees Kelley
R. Shackleford and Karen Mills, who were employed with IBERIABANK filed claims
under the False Claims Act ("FCA") against their firm and will now
receive a 20% of any resulting recovery arising out of IBERIABANK Corporation,
IBERIABANK and IBERIABANK Mortgage Company (collectively, IBERIABANK) agreement
to pay the United States $11,692,149 to resolve the FCA allegations.
Stock Trader Charged in Insider Trading
Ring (SEC Press Release 2017-228) According to the SEC Press Release,
the federal regulator charged a former day trader Joseph Sera with making more
than $1 million in illegal insider trading profits as part of a ring that
allegedly stole confidential information from investment banks and clients so
they could trade in advance of secondary stock offerings. A parallel federal
criminal action against Spera, who agreed to plead guilty. Previously, Paul
Petrello, Steven Costantin, and Ronald Chernin pleaded guilty in the criminal
actions and agreed to partial settlements in the SEC cases with potential
monetary sanctions to be determined at a later date. Litigation continues against the alleged ringleader
Steven Fishoff. READ the FULL TEXT Plaintiff, v. Joseph Spera and Joleine, Inc.,
Defendants (Complaint, 17-CV-12875, United States District Court for the
District of New Jersey).
Season's Greetings From FINRA. You're Fined
And Suspended. Ho, Ho, Ho (BrokeAndBroker.com Blog) We're nearing
year-end and for many industry employees that means another cycle of annual
compliance disclosures is on its way. You will get the office memo about how
you need to make time to sit down at the computer and click your way through a
batch of "YES" and "NO" responses about all sorts of events
that may or may not have happened to you during the past year. Then there are those
other queries about whether you engaged in this type of activity or have any of
the following such-and-such outside accounts or if you were named in some legal
proceeding. Year after year it's pretty much the same nonsense, as you would
put it. The thing is, you may not have considered that you never disclosed
something a few years ago because you didn't realize that you had to -- and
you're continuing to answer "NO" when you should answer
"YES." Then there's that other bit of language on the annual form
that they changed last year and the way it's now re-worded should elicit a
different response from you but for the fact that you're assuming it's the same
old language that you've read every year in the past. Well . . . season's
greetings and all that but, hey, you better slow down this year and make sure
that you know what you're being asked to disclose. Consider a recent FINRA
disciplinary settlement.
http://www.rrbdlaw.com/3714/securities-industry-commentator/
In
today's Securities Industry Commentator feed:
The
Damnatio Memoriae Of Former SEC Counsel Rory Flynn (BrokeAndBroker.com Blog) After complaining about his concerns
of the SEC's non-compliance with its own rules, former SEC lawyer Rory Flynn
was fired. Flynn appealed and sought protection as a whistleblower. As
frightening a tale of the worst of government and regulation. The exaltation of
incompetency.
Jury Convicts Former Atlanta Police
Sergeant for Using Excessive Force to Break Walmart Customer's Leg (DOJ
Press Release) I'd like to think that this case is "fake news" but
it's not -- and that makes the story all the more pathetic and outrageous. What
should not get lost in the story is the shocking abuse of power and how easily
it would have been for the victim to have become ensnared in the criminal
justice system and convicted of the purported crime.
Former Hoboken City Council President
Sentenced To 30 Months In Prison For His Participation In A $7 Million Car Loan
Scheme (DOJ Press Release) The
former Hoboken, NJ City Council President and lawyer Christopher Campos was
convicted of bank fraud, wire fraud, and conspiracy to commit each, and,
thereafter, he was sentenced in the United States District Court for the
Southern District of New York to 30 months in prison for his role in a car-loan
scheme involving some 20 straw-buyers, 200 new vehicles, and over $7 million in
loans. In total, the scheme carried out by CAMPOS, Alvarez, and others involved
approximately 20 straw buyers, the purchase of approximately 200 new vehicles,
and ultimately resulted in lenders disbursing over $7,000,000 in fraudulently
obtained car loans that largely ended in default.annual form
that they changed last year and the way it's now re-worded should elicit a
different response from you but for the fact that you're assuming it's the same
old language that you've read every year in the past. Well . . . season's
greetings and all that but, hey, you better slow down this year and make sure
that you know what you're being asked to disclose. Consider a recent FINRA
disciplinary settlement.
http://www.rrbdlaw.com/3714/securities-industry-commentator/
In
today's Securities Industry Commentator feed:
The
Damnatio Memoriae Of Former SEC Counsel Rory Flynn (BrokeAndBroker.com Blog) After complaining about his concerns
of the SEC's non-compliance with its own rules, former SEC lawyer Rory Flynn
was fired. Flynn appealed and sought protection as a whistleblower. As
frightening a tale of the worst of government and regulation. The exaltation of
incompetency.
Jury Convicts Former Atlanta Police
Sergeant for Using Excessive Force to Break Walmart Customer's Leg (DOJ
Press Release) I'd like to think that this case is "fake news" but
it's not -- and that makes the story all the more pathetic and outrageous. What
should not get lost in the story is the shocking abuse of power and how easily
it would have been for the victim to have become ensnared in the criminal
justice system and convicted of the purported crime.
Former Hoboken City Council President
Sentenced To 30 Months In Prison For His Participation In A $7 Million Car Loan
Scheme (DOJ Press Release) The
former Hoboken, NJ City Council President and lawyer Christopher Campos was
convicted of bank fraud, wire fraud, and conspiracy to commit each, and,
thereafter, he was sentenced in the United States District Court for the
Southern District of New York to 30 months in prison for his role in a car-loan
scheme involving some 20 straw-buyers, 200 new vehicles, and over $7 million in
loans. In total, the scheme carried out by CAMPOS, Alvarez, and others involved
approximately 20 straw buyers, the purchase of approximately 200 new vehicles,
and ultimately resulted in lenders disbursing over $7,000,000 in fraudulently
obtained car loans that largely ended in default.