Securities Industry Commentator by Bill Singer Esq

Bank Fails To Disclose What It Should Have But Gets Credit For The Non Disclosure (BrokeAndBroker.com Blog)

SEC Charges Recidivist Investment Adviser with Defrauding Retirees (DOJ Release)

Florida Man Sentenced To More Than 6 Years In Prison For Defrauding Investors Of Nearly $1 Million And Attempting To Flee Before Sentencing (DOJ Release)

Florida Man Admits Laundering More Than $9 Million In Account Takeover Scheme (DOJ Release)

Former Biopharmaceutical Executive Charged with Insider Trading (SEC Release)

[S]pringer and SFA received millions of dollars in undisclosed compensation and other benefits for recommending certain investment products while claiming that they did not have any conflicts of interest. According to the complaint, many clients learned of Springer through his radio show, "Smart Money with Keith Springer," and Springer misled prospective clients into believing he was selected to host the show because of his industry expertise. In reality, SFA paid to broadcast the show. The SEC's complaint further alleges that Springer went to great lengths to hide prior charges by the SEC and his disciplinary history with the New York Stock Exchange, hiring internet search suppression consultants and instructing employees not to provide the information to prospective clients.

From December 2015 to November 2017, OSORIO solicited investments in a purported liquor distribution company from approximately nine people whom he knew from his own family and social circles in Florida and New York.  OSORIO promised the investors high rates of return on importing Colombian liquor, and told them that his new company was working in partnership with a more established company.

In truth, OSORIO's liquor company was a sham.  OSORIO did not import or distribute liquor, and did not have a business relationship with another liquor distribution company.  Instead, OSORIO used the investors' money for himself, including for air travel, cruises, jewelry, electronics, and furniture.  OSORIO also redistributed some of the investors' money to other investors as supposed profits in order to induce additional investments.  In total, OSORIO defrauded investors of approximately $1 million.

OSORIO had been released on bond during the pendency of the case, and was required to surrender his Colombian passport and remain in Florida (where he lived) and New York.  However, on October 29, 2019, OSORIO was arrested at Miami International Airport attempting to jump bail and flee the United States to Colombia.  OSORIO's ticket was purchased the day before and he had obtained a new Colombian passport.  OSORIO has since remained in custody until his sentencing.

Between February 2018 and July 2018, several clients of Company-1, a financial technology company headquartered in San Jose, California, fell victim to an account takeover scheme resulting in total losses exceeding $9 million.

The scheme generally involved an unidentified individual or individuals calling Company-1 and impersonating a representative of one of the victim companies.  The impostor(s) would then request that an unauthorized bank account be added to the victims' Company-1 accounts and be designated to receive payments from e-commerce customers.

The unauthorized bank accounts added to the victims' Company-1 accounts were each controlled by Buzyukov under the name of a corporation registered to him in the State of Florida.  After monies were deposited to the unauthorized accounts, Buzyukov would transfer the funds to other accounts controlled by him.  Buzyukov then wired the majority of the funds to several bank accounts held by various individuals in Russia, Turkey and Ukraine.

Buzyukov also admitted to creating fake invoices in the amounts of the wire transfers in order to make the transactions appear legitimate.

[W]ang tipped his close friend, Jason "Schultz" Chan, to trade Merrimack securities in advance of the company announcing positive drug trial results. The SEC further alleges that Chan later returned the favor and tipped Wang with nonpublic information about a successful drug trial conducted by Chan's employer, Akebia Therapeutics, Inc. The complaint alleges Wang made approximately $108,000 trading Akebia securities based on Chan's tips. The SEC previously charged Chan with insider trading in connection with this investigation.

Both Wang and Chan were charged with insider trading by the U.S. Attorney's Office for the District of Massachusetts and were criminally convicted after a jury trial. They are currently in the process of appealing their convictions.

• Securities Industry Commentator
• Bill Singer