Good Vibrations Shoes: a 4 Phase Randomized Program Along with a Lithium Rechargeable Power Source (BrokeAndBroker.com Blog)Former Chief Executive Officer Pleads Guilty To Embezzling More Than $15 Million From Her Employer / The Defendant Admitted to Using the Embezzled Money to Finance Her Luxury Goods Business and to Fund Her Extravagant Lifestyle (DOJ Release)Banker sentenced for obtaining hundreds of thousands of dollars in fraudulent loans / Former loan officer used another man's identity without consent (DOJ Release)SEC Obtains Judgment Against Former Pharmaceutical Company CFO Who Engaged in Insider Trading (SEC Release)FINRA Arbitrator Awards Respondent Infinity Financial Services Attorneys' Fees in Case Where Customer Claimant Sought Voluntary DismissalIn the Matter of the Arbitration Between Steven Swanson, Claimant, v. Infinity Financial Services, Respondent (FINRA Arbitration Award)
[F]rom least 2013 to January 2020, the defendant executed an extensive scheme to defraud her employer, identified in court documents as Victim Company A, a privately held U.S. based subsidiary of a foreign company that manufactures carbide products. The owners of Victim Company A and its parent company reside overseas. Court records show that Steele embezzled over $15 million from Victim Company A and used the money to support a business run by her and her family and to fund an extravagant lifestyle.As Steele admitted in court today, she was employed by Victim Company A from 1999 to January 2020. Initially, Steele worked in the shipping department and was promoted over the next 20 years to various positions within the company, including to the position of Chief Executive Officer (CEO), which she held until she was terminated in January 2020. While serving as Vice President and later as CEO, Steele used her positions to embezzle funds from Victim Company A in a number of ways, including through fraudulent company credit card purchases, company checks, Quickbooks transactions, and wire transfers. For example, filed court documents show that Steele used company credit cards to pay for $6 million in personal expenditures, including to make high-end retail store purchases, to pay for luxury hotel accommodations and event ticket purchases, to buy expensive jewelry, to pay for family weddings, and to make purchases related to Opulence by Steele, a luxury clothing and boutique company the defendant founded in 2013.In addition to the credit card purchases, Steele admitted to issuing and causing to be issued to herself approximately 98 checks totaling more than $2.8 million from Victim Company A's bank accounts, which Steele deposited into her personal bank account. Furthermore, Steele caused 127 fraudulent and unauthorized wire transfers to be executed as Quickbooks transactions, transferring more than $4.7 million from Victim Company A's bank accounts to her personal bank account. During the same time period, Steele executed at least 117 fraudulent and unauthorized bank wires, totaling more than $2.2 million, from Victim Company A's bank accounts to the defendant's personal bank account, which she then used for her personal benefit, including to fund a personal real estate closing.According to filed documents, as a result of Steele's embezzlement, Victim Company A experienced several difficulties, including vendors withholding products from the company for non-payment or late payments, customers complaining about being placed on credit holds, notwithstanding timely payments of their bills, employees having their company credit cards declined when they were trying to use them for legitimate business expenses, employees not being paid on time, and/or employees having their insurance cancelled without warning. Steele admitted that, in an effort to hide the fraudulent scheme, she limited communications and interactions between the employees and owners for Victim Company A and monitored communications that did occur, she convinced employees that company owners should be feared, and lied to employees about the true nature of Victim Company A's financial trouble.
Loan servicers are required to accurately report the impact of monthly student loan repayments, principal capitalization and other changes to borrower accounts to the Department of Education. The settlement announced today resolves allegations that between 2006 and 2016, CES knowingly failed to make required financial adjustments to borrower accounts and improperly treated some borrowers as eligible for military deferments when they were not, resulting in incorrect reporting to the Department of Education and losses to the United States. CES stopped servicing commercially held federal student loans in September 2019.
McMillan admitted that from July 2009 through April 2019, he knowingly used the identity of another person without their consent in obtaining commercial loans in the amounts of $187,000, $160,000, $157,000 and $250,000 from a Chatham County bank where he worked as its commercial loan officer. McMillan also admitted he obtained these loans under the false pretense that loans would be used for obtaining industrial farm equipment. McMillan admitted he knowingly used approximately $200,271 of these funds for his own personal use. The bank discovered the fraud during an internal investigation.
[F]rom March 23, 2017 to July 31, 2017, Cottone and his now defunct unregistered investment adviser raised approximately $2.76 million from 11 investors in connection with the sale of preferred interests in a private fund through false and misleading representations and material omissions. The complaint alleges Cottone misappropriated at least $134,000 from the fund. The complaint further alleges that Cottone failed to disclose to investors that he used fund assets to pay investors in a prior unrelated securities offering, that he used fund assets to pay his unregistered investment adviser, that he received undisclosed commission payments out of fund assets, that he used fund assets to operate a start-up car dealership he formed and managed, and that he has a prior criminal conviction. In addition to his alleged misrepresentations and omissions, the complaint alleges Cottone sold securities in unregistered transactions and acted as an unregistered broker.
[R]oth, while working as Aceto's CFO, obtained non-public information concerning several negative developments at Aceto. The complaint further alleged that, while in possession of this confidential information, and within days of his March 31, 2018 retirement, Roth sold all of the Aceto shares that vested upon his retirement.In a parallel criminal action brought by the U.S. Attorney's Office for the Eastern District of New York, Roth pleaded guilty on November 9, 2020, and was sentenced on July 7, 2021 to six months in prison, six months of home incarceration, one year of supervised release, a fine of $150,000, and forfeiture of $147,802.64.
In May 2018, Joseph signed an employment agreement with another member firm, while he was registered with Signator. The employment agreement was in effect until November 2018, and the firm paid Joseph $31,750.47. Joseph's job responsibilities did not involve the execution of any securities transactions but instead related primarily to managing relationships with current and prospective clients.During the entire period that Joseph was registered with FINRA through an association with Signator and Royal Alliance, Joseph was also a founder, owner, and chief operating officer of a company that he formed with his wife to launch a mobile application. Joseph handled various aspects of the business, including working with vendors to develop and market the mobile application. Joseph was issued a company credit card to pay for business expenses, including meals and travel, but did not receive a salary. Joseph did not provide prior written notice to either Signator or Royal Alliance before engaging in the above described outside business activities, and thereby Joseph violated FINRA Rules 3270 and 2010.. . .Beginning in March 2018, Joseph participated in raising money for the mobile application business he started with his wife. Joseph participated in the sales of $462,500 of convertible notes to 15 investors who were friends and family of Joseph and his wife. Joseph assisted with pitching investments to individuals and sending offering documents. Joseph had an ownership interest in this business and was reimbursed for his expenses.Joseph did not provide prior written notice of his participation in these private securities transactions to either of his member firms, and thereby Joseph violated FINRA Rules 3280 and 2010.
From January 1, 2019, through July 9, 2020, Kichline exercised discretion on 1,519 occasions in five customers' accounts. Although the customers gave Kichline oral discretion to purchase or sell securities, none of the customers provided prior written authorization for Kichline to exercise discretion in their accounts. Additionally, Raymond James did not accept any of the customer accounts as discretionary accounts.
negligence; professional negligence; violations of law; unsuitable recommendations; negligent supervision; breach of contract; breach of fiduciary duty; and breach of securities industry rules and regulations. The causes of action relate to Sierra Income real estate investment trust.
failure to comply with the FINRA discovery procedures and continuing to pursue the claim after it was apparent there were no reasonable grounds for doing so.
Gerri Walsh, FINRA's Senior Vice President of Investor Education and President of the FINRA Investor Education Foundation, testified in front of the Senate Special Committee on Aging.The hearing entitled, "Financial Literacy: Addressing the Unique Just-in-Time Decisions Older Americans and People with Disabilities Face," examined financial literacy and education on decisions for which people often seek information and support at the time of making the decision. The hearing also covered data and trends regarding financial literacy among older adults.