SEC Obtains Emergency Relief, Charges Florida Company and CEO with Misappropriating Investor Money and Operating a Ponzi Scheme (SEC Release)Carthage Man Pleads Guilty to Telemarketing Crimes / International Ring Worked Sophisticated Tech Support Fraud (DOJ Release)FINRA Bars Rep for Unauthorized Trades, False Responses to Regulator, and Inaccurately Marking Trades "Unsolicited"
[S]ince about May 2015, Maroney and his companies raised at least $17.1 million from more than 100 investors in a series of fraudulent securities offerings. The complaint alleges that Maroney, his company Harbor City Capital Corp., and his various other entities told investors that offering proceeds would be used to finance the defendants' online "customer lead generation campaigns," and promised investors annual returns ranging from 10% to 60% from the resale of those leads to other businesses. In fact, according to the complaint, little if any investor funds actually went to the lead generation business. Instead, the complaint alleges, Maroney misappropriated at least $4.48 million in investor funds to enrich himself and his family, including the purchase and maintenance of his waterfront home and a Mercedes Benz, and to pay for his extensive credit card bills and renovation-related expenses on the house. The complaint further alleges that Maroney misused investor money by making payments to other entities unrelated to the supposed purpose of the offerings, and that he fraudulently used investor funds to make monthly interest payments and other payouts to investors in a classic Ponzi scheme fashion.
[B]eginning no later than on or about January 10, 2015, and continuing through on or about December 20, 2018, Zahid conspired with eight other defendants, located both across the United States and in India, to commit the federal offenses of wire fraud, mail fraud, and bank fraud, in addition to offenses of money laundering, aggravated identity theft, and passing fictitious obligations.As stated in court documents and testimony in open court, Zahid assisted leaders of a fraud ring which sent tech support emails or telephone messages wrongly advising consumers that their computers were infected with malware or otherwise compromised, and offering for a price to help free their computers. Once given permission to access remotely the victims' computers, conspirators from the United States or abroad would help themselves to personal identification information and bank account passwords from their victims' computers. Victims often were senior citizens.Zahid specifically aided the conspirators by incorporating a company called US Professional Support, Inc., and opening bank accounts for the business. Conspirators would then use the business names and the bank accounts to transfer and remove money obtained from victims during the scam.
The Customer never filed the complaint at issue; instead, the complaint was filed by another individual, without the Customer's permission. Also, that individual was later arrested for fraud and received a jail sentence. Furthermore, the investments recommended by Claimant were appropriate.
breach of fiduciary duty, negligence, and negligent supervision. The causes of action relate to Claimant's allegations that his financial advisor failed to liquidate his portfolio upon his request and that, when the investments were later sold, they had declined significantly.
Claimant focused his claim solely on a March 13, 2020, email trade order, but he knew or should have known that trade orders may not be made via email. Claimant and Bellcase spoke the next business day, and Claimant revoked the email trade order. In addition, based on the facts, the damage claim vastly exceeded any possible actual damages, even in the worst case scenario.
During the Relevant Period, Kim effected 162 unauthorized transactions in the brokerage accounts of a customer. Kim also did not obtain approval from the customer before executing the 162 transactions. Therefore, Kim violated FINRA Rule 2010.. . .During the course of its investigation, FINRA asked Kim, pursuant to FINRA Rule 8210, whether the customer authorized the 162 transactions at issue. In response, Kim twice stated that the customer provided authorization using the KakaoTalk mobile telephone application. However, FINRA obtained the KakaoTalk records showing that the customer did not provide Kim with this authorization. Kim's response was, accordingly, false. Therefore, Kim violated FINRA Rules 8210 and 2010.. . .During the Relevant Period, Kim mismarked 162 trades in the accounts of the customer as "unsolicited," causing Kayan to have inaccurate books and records. Therefore, Kim violated FINRA Rule 4511 and 2010.