The Wall Street Legal & Regulatory Feed
Securities Industry Commentator by Bill Singer Esq
July 11, 2018
Travelin' Man Comes To End of Wall Street Line (BrokeAndBroker.com Blog)
http://www.brokeandbroker.com/4071/finra-awc-travel/
http://www.brokeandbroker.com/4071/finra-awc-travel/
We've all been there. That moment when we pondered whether to do or not to do something that we knew was wrong but, hey, not all that wrong and, c'mon, who the hell is going to find out? There were benefits to consider. There were costs to weigh. We attempted to calculate whether right outweighed wrong but, oh my, the dollar signs flashed and the thrill of ragin' against the machine got a hold of our moral compass, and, crap, everything froze and all we could do was hold down the power switch and hope the re-boot would work. For the lucky among us, after our brain temporarily shut down and we re-booted, we were safely returned to the last restore point with no harm. We swore on everything holy that we would never, ever make such a stupid mistake again. For the unlucky among us, there was no reboot other than the dreaded blue screen and a hopelessly corrupted BIOS -- and to make matters worse, we never bothered to make a back-up. In a recent FINRA regulatory settlement, we come across one associated person with a penchant for travel and an operating system that crashed and never got its owner back to a safe restore point.
New York Man Indicted on Bank Fraud Conspiracy, Producing/Passing Fictitious Obligations, Access Device Fraud, and Aggravated Identity Theft (DOJ Press Release)
https://www.justice.gov/usao-ednc/pr/new-york-man-indicted-bank-fraud-conspiracy-producingpassing-fictitious-obligations-0
https://www.justice.gov/usao-ednc/pr/new-york-man-indicted-bank-fraud-conspiracy-producingpassing-fictitious-obligations-0
Gianni Armani Vincent was indicted in the United States District Court for the Eastern District of North Carolina on one count of Conspiracy to Commit Bank Fraud, two counts of Producing/Passing Fictitious Obligations, two counts of Access Device Fraud, and two counts of Aggravated Identity Theft. Frankly, Vincent seems an ambitious fellow. As set forth in part in the DOJ Press Release:
The indictment alleges that beginning in or around September 2016, and continuing until in or around March 2018, VINCENT and his co-conspirators engaged in a scheme to defraud financial institutions out of money by producing and depositing counterfeit checks into conspirator bank accounts. Additionally, VINCENT is alleged to have been involved in access device fraud by possessing numbers that granted him access to the bank accounts of unsuspecting consumers. According to evidence and testimony presented at VINCENT's recent detention hearing, when the Cary Police Department and United States Secret Service encountered VINCENT on December 1, 2017, he was in possession of over two-hundred counterfeit checks, a computer with check-writing software, approximately twenty-five counterfeit cards, and more than fifty account numbers, among other things.
SEC Charges Former Heartland CEO, Romantic Partner in Insider Trading Scheme (DOJ Litigation Release No. 24191)
https://www.sec.gov/litigation/complaints/2018/comp24191.pdf
The SEC filed a Complaint in the United States District Court for the District of Connecticut alleging that former Heartland Payment Systems, Inc. CEO Robert O. Carr and "his romantic partner" (also called his "longtime girlfriend") Katherine M. Hanratty used nonpublic information about an impending acquisition of Heartland by another payment processing company to generate more than $250,000 of illicit profits. Okay, sure, we got two folks allegedly conspiring to engage in insider trading but, geez, it is 2018 and you'd sort of think that the SEC might just be a bit less sexist these days? How nice that the federal regulator refers to Hanratty as Carr's "romantic partner" and "longtime girlfriend." Just throwing this out here but, hmmmm, you think the SEC would ever refer to the male conspirator as "her romantic parnter" and "longtime boyfriend?" My two cents on my own question is "no." READ the FULL TEXT SEC Complaint https://www.sec.gov/litigation/complaints/2018/comp24191.pdf
In anticipation of the institution of proceedings by the SEC but without admitting or denying the findings, Romano Brothers & Company submitted an Offer of Settlement, which the federal regulator accepted. In the Matter of Romano Brothers & Company, Respondent (Order Instituting Administrative And Cease-And-Desist Proceedings, Making Findings, And Imposing Remedial Sanctions And A Cease-And-Desist Order; '34 Act Release No. 83613; Invest. Adv. Act Rel. No.4965; Admin. Proc. File No. 18590 / July 10, 2018) (the "OIP"). https://www.sec.gov/litigation/admin/2018/34-83613.pdf
In accordance with the OIP, Romano Brothers was censured, ordered to cease-and-desist, and sahll pay a $15,000 civil money penalty As set forth under the "Summary" portion of the OIP:
In accordance with the OIP, Romano Brothers was censured, ordered to cease-and-desist, and sahll pay a $15,000 civil money penalty As set forth under the "Summary" portion of the OIP:
In anticipation of the institution of proceedings by the SEC but without admitting or denying the findings, HBA Advisors, LLC, and Jaime Enrique Biel submitted an Offer of Settlement, which the federal regulator accepted. In the Matter of HBA Advisors, LLC, and Jaime Enrique Biel, Respondent(Order Instituting Administrative And Cease-And-Desist Proceedings, Making Findings, And Imposing Remedial Sanctions And A Cease-And-Desist Order; Invest. Adv. Act Rel. No.4963; Admin. Proc. File No. 18588 / July 10, 2018) (the "OIP"). https://www.sec.gov/litigation/admin/2018/34-83613.pdfThese proceedings arise out of Romano Brothers' violation of the testimonial rule under the Advisers Act which states that it shall constitute a fraudulent, deceptive or manipulative act, practice, or course of business for any SEC-registered investment adviser to publish, circulate or distribute any advertisement which refers to, among other things, any testimonial of any kind concerning the investment adviser. Specifically, Romano Brothers violated the testimonial rule by publishing two videos containing client testimonials about Romano Brothers and the advice and services it renders. These testimonial videos were available to the public on both Romano Brothers' public website and on YouTube.com from approximately August 2012 through April 2017. By publishing videos containing client testimonials, Romano Brothers violated Section 206(4) of the Advisers Act and Rule 206(4)-1(a)(1) thereunder
In accordance with the OIP, HBA was censured; and HBA and Biel were ordered to cease-and-desist, and pay a $15,000 and $10,000 civil money penalty respectviely. As set forth under the "Summary" portion of the OIP:I
These proceedings arise out of HBA's violations and Biel's causing HBA's violations of the testimonial rule under the Advisers Act, which states that it shall constitute a fraudulent, deceptive, or manipulative act, practice, or course of business for any investment adviser registered with the Commission to publish, circulate or distribute any advertisement which refers to, among other things, any testimonial of any kind concerning the investment adviser. HBA violated, and Biel caused HBA to violate, the testimonial rule under the Advisers Act by publishing on the internet advertisements containing testimonials concerning HBA, Biel and the investment advice and services they render. The testimonials were available to the public on various websites, including Yelp.com and Facebook.com. By publishing statements containing client testimonials on the internet, HBA violated, and Biel caused HBA to violate, Section 206(4) of the Advisers Act and Rule 206(4)-1(a)(1) thereunder.
In anticipation of the institution of proceedings by the SEC but without admitting or denying the findings, William M. Greenfield submitted an Offer of Settlement, which the federal regulator accepted. In the Matter of William M. Greenfield, Respondent (Order Instituting Administrative And Cease-And-Desist Proceedings, Making Findings, And Imposing Remedial Sanctions And A Cease-And-Desist Order; Invest. Adv. Act Rel. No.4961; Admin. Proc. File No. 18586 / July 10, 2018) (the "OIP"). https://www.sec.gov/litigation/admin/2018/ia-4961.pdf
In accordance with the OIP, Greenfield was ordered to cease-and-desist, and pay a $10,000 civil money penalty As set forth under the "Summary" portion of the OIP:
In accordance with the OIP, Greenfield was ordered to cease-and-desist, and pay a $10,000 civil money penalty As set forth under the "Summary" portion of the OIP:
In anticipation of the institution of proceedings by the SEC but without admitting or denying the findings, Brian S. Eyster submitted an Offer of Settlement, which the federal regulator accepted. In the Matter of Brian S. Eyster, Respondent (Order Instituting Administrative And Cease-And-Desist Proceedings, Making Findings, And Imposing Remedial Sanctions And A Cease-And-Desist Order; Invest. Adv. Act Rel. No.4962; Admin. Proc. File No. 18587 / July 10, 2018) (the "OIP").https://www.sec.gov/litigation/admin/2018/ia-4962.pdfThese proceedings arise out of Greenfield's causing violations of the testimonial rule under the Advisers Act which states that it shall constitute a fraudulent, deceptive, or manipulative act, practice, or course of business for any investment adviser registered with the Commission to publish, circulate or distribute any advertisement which refers to, among other things, any testimonial of any kind concerning the investment adviser. Greenfield caused TFS Securities, Inc. ("TFS") to violate the testimonial rule under the Advisers Act by publishing on the internet advertisements containing testimonials concerning the investment advice and services he renders as an investment adviser representative of TFS. From approximately September 2015 through January 2017, these testimonials were available to the public on Facebook.com and Google.com webpages that Greenfield maintained for his business. By publishing statements containing client testimonials, Mr. Greenfield caused TFS to violate Section 206(4) of the Advisers Act and Rule 206(4)-1(a)(1) thereunder.
In accordance with the OIP, Eyster was ordered to cease-and-desist, and pay a $10,000 civil money penalty As set forth under the "Summary" portion of the OIP:
In anticipation of the institution of proceedings by the SEC but without admitting or denying the findings, Leonard S. Schwartz submitted an Offer of Settlement, which the federal regulator accepted. In the Matter of Leonard S. Schwartz, Respondent (Order Instituting Administrative And Cease-And-Desist Proceedings, Making Findings, And Imposing Remedial Sanctions And A Cease-And-Desist Order; Invest. Adv. Act Rel. No.4964; Admin. Proc. File No. 18589 / July 10, 2018) (the "OIP").https://www.sec.gov/litigation/admin/2018/ia-4962.pdfThese proceedings arise out of Eyster's causing violations of the testimonial rule under the Advisers Act, which states that it shall constitute a fraudulent, deceptive, or manipulative act, practice, or course of business for any investment adviser registered with the Commission to publish, circulate or distribute any advertisement which refers to, among other things, any testimonial of any kind concerning the investment adviser. Eyster caused ON Investment Management Co. ("ONIMCO") to violate the testimonial rule under the Advisers Act by publishing on the internet advertisements containing testimonials concerning Eyster and the investment advice and services he renders as an investment adviser representative of ONIMCO. The testimonials were available to the public on, among other places, YouTube.com and a website Eyster maintained for his business. By publishing statements containing client testimonials, Eyster caused ONIMCO's violations of Section 206(4) of the Advisers Act and Rule 206(4)-1(a)(1) thereunder.
In accordance with the OIP, Schwartz was ordered to cease-and-desist, and pay a $35,000 civil money penalty As set forth under the "Summary" portion of the OIP:
These proceedings arise out of Schwartz's role in causing violations of the testimonial rule under the Advisers Act, which states that it shall constitute a fraudulent, deceptive, or manipulative act, practice, or course of business for any investment adviser registered with the Commission to publish, circulate or distribute any advertisement which refers to, among other things, any testimonial of any kind concerning the investment adviser. Between March 2015 and March 2016, Schwartz was a cause of four registered investment advisers' violations of the testimonial rule under the Advisers Act when he collected and published on the internet on behalf of each of them advertisements containing testimonials concerning the investment advisers and the investment advice and services they rendered. The testimonials were available to the public on various websites, including YouTube.com, Google.com, Facebook.com, Twitter.com, and Yelp.com. By publishing client testimonials on the internet, the investment advisers violated, and Schwartz caused violations of Section 206(4) of the Advisers Act and Rule 206(4)-1(a)(1) thereunder