Walt Bettinger expects 'hundreds' of Charles Schwab Corp. staff tasked with wiring TD Ameritrade merger to soon soar to 'thousands' of Schwab and TD workers / The Charles Schwab Corp. CEO reassured Wall Street analysts looking for a sign Schwab believes what it promises about an imminent closing that it has yet to schedule. (RIABiz by Oisin Breen)SEC Charges CEO and Company with Defrauding First Responders and Others Out of Millions (SEC Release)NYMEX and Two Former Employees to Pay $4 Million for Disclosing Material Non-Public Information (CFTC Release)CFTC Advisory Warns Customers to Carefully Assess Precious Metals Pitches Touting CARES Act Rules (CFTC Release)
raised $14 million from investors, promising that they would use the funds to purchase engines and other aircraft parts for leasing to major airlines. As alleged, Farias and IAL falsely touted Farias's supposed investment experience and IAL's purported competitive advantages, such as an algorithm that supposedly identified profitable leasing opportunities, and represented that all investments would be secured by IAL's assets. According to the complaint, many of the investors were retirees who, in order to invest their retirement funds, had to withdraw the funds from their retirement accounts and deposit them in newly created self-directed IRA accounts. The complaint alleges that IAL never purchased any engines and spent only a small portion of investor funds on aircraft parts. Farias and IAL allegedly diverted more than $11.6 million for unauthorized purposes, such as making $6.5 million in Ponzi-like payments to investors and investing $2.7 million to fund a friend's business. Farias also allegedly misappropriated $2.4 million for personal expenses. According to the complaint, Farias continued to mislead investors after he learned of the SEC's investigation, including by using the letterhead from the SEC's investigative subpoena as "proof" for investors that he was working with the SEC to take IAL public.
The order finds Byrnes and Curtin directly liable for their improper disclosures and NYMEX vicariously liable for the misconduct of its former employees. In addition, Byrnes and Curtin are permanently banned from trading commodity interests and registering with the CFTC and are enjoined from future violations of the CEA and CFTC regulations, as charged. The order also enjoins NYMEX to the extent the CEA and CFTC regulations apply under the vicarious liability provision of the CEA. In addition, the order imposes a $4 million civil monetary penalty jointly and severally on NYMEX, Byrnes, and Curtin, with the liability of Byrnes and Curtin capped, respectively, at $300,000 and $200,000.. . . .The order finds that on numerous occasions between 2008 and 2010, Byrnes and Curtin, while acting in the scope of their employment as NYMEX employees, willfully and knowingly disclosed material non-public information obtained through special access. The order finds that Byrnes and Curtin improperly disclosed to commodities broker and defendant Ron Eibschutz the identities of counterparties to crude oil options and natural gas futures trades, trade details such as price and volume, and other confidential information.