Updates
Brightline Solutions updates IA Act UnwrappedTM on a daily basis. These updates include new Releases, No-Action Letters, Enforcement Cases, Self-Examination Tools and Information related to all aspects of investment adviser compliance. Subscribers are assured that they have access to the most current information available. The following is a selection of some of the more recent changes. Please login to access the information from the associated databases within IA Act UnwrappedTM.
IA-5512 In the Matter of Oxbow Advisors, LLC
Breaches of fiduciary duty in connection with inadequate disclosure of its mutual fund share class selection practices
Ordered to pay disgorgement, prejudgment interest, and a civil monetary penalty of $90,000
IA-5511 In the Matter of Syed Arham Arbab
Pled guilty to securities fraud; solicited investors, spent investor runds on personal expenses and participated in a Ponzi-like scheme
Barred from association
IA-5510 In the Matter of Ares Management, LLC
Failure to implement and enforce certain of its written policies and procedures reasonably designed, taking into consideration the nature of its business, to prevent the misuse of potentially material nonpublic information
Ordered to pay $1,000,000 civil monetary penalty
IA-5503 In the Matter of Wallace Byers
In criminal case, sentenced to prison convicted of wire fraud - solicited investors preying on older invididuals and victims of prior schemes
Barred from association
IA-5509 In the Matter of William Andrew Hightower
In criminal case pled guilty to wire fraud; transferred investor funds for personal use
Barred from association and barred from participating in any offering of a penny stock
LR-24822 SEC v. Paul Horton Smith, Sr.; Northstar Communications, LLC; Planning Services, Inc.; and eGate, LLC
Ponzi scheme targeting seniors
IA-5508 In the Matter of TSP Capital Management Group, LLC
Custody Rule violations - failed to timely distribute annual audited financial statements prepared in accordance with GAAP
Ordered to pay a civil monetary penalty of $60,000
Added to the IA Act UnwrappedTM Releases Database and Regulatory Database Rule 206(4)-2 Risks/Significant Cases Tab
IA-5507 In the Matter of Barton W. Stuck
Order Granting Extension of Time
IA-5506 Notice of Intention to Cancel Registration of McDaniel Investments, LLC
IA-5505 In the Matter of Edmunds Private Capital, LLC
Order grainting exemption under Advisers Act Section 202(a)(11)(H)
IA-5504 Notice of Intention to Cancel Registration of Strategic Options, LLC
Registrant is no longer eligible to be registered with the SEC as an investment adviser
Keynote Address: Securities Enforcement Forum West 2020
Steven Peikin - Co-Director, Division of Enforcement (May 12, 2020)
Including: COVID-19 Enforcement Matters & Ongoing Non-COVID-19 Work
Added to the IA Act UnwrappedTM Examination Tools Database/2020 Information
LR-24817 SEC v. Ambassador Advisors, LLC, et al
SEC Charges IA & Principals for Breaching Fiduciary Duties
IA-5500 In the Matter of Justin N. Deckert
In civil action, charged with falsifying multiple records of VQ Management to conceal a fraudulent offering of promissiary notes by VQ Mangement’s principal from the Commission staff during an exam and ensuing enforcement investigation
Barred from association for 5 years
IA-5502 In the Matter of Travis Laska
IA-5501 In the Matter of Stacy L. Beane
In civil action, convicted of participating in efforts to hide a Ponzi-scheme through three VisionQuest entities
Public hearing ordered
LR-24815 SEC v. TCA Fund Management Group Corp. and TCA Global Credit Fund GP, Ltd.
SEC Obtains Receiver Over Florida Investment Adviser Charged With Fraud
IA-5499 In the Matter of Morgan Stanley Smith Barney LLC
Made misleading marketing and client communications related to the services rendered and costs incurred in MSSB’s retail wrap fee programs; failure to adopt and implement written policies and procedures reasonably designed to prevent violations of the Advisers Act.
Ordered to pay a civil monetary penalty of $5 million
Added to the IA Act UnwrappedTM Releases Database and linked to the term "wrap fee program" in the Glossary & Definitions Database
IA-5498 In the Matter of Lawrence E. Hagedorn
In criminal case, pled guilty to repeatedly borrowing money from customers
Barred from association and barred from participating in any offering of a penny stock
IA-5497 In the Matter of Barry R. Bekkedam
In criminal case, convicted of fraud/participation in a Ponzi-scheme
Barred from association with any investment adviser
IA-5496 In the Matter of D.B. Fitzpatrick & Co., Inc.
Order granting exemption from Rule 206(4)-5(a)-(1)
Added to the IA Act UnwrappedTM Releases Database and to the No-Action/Exemptive Release Tab under Regulatory Database Rule 206(4)-5, Pay to Play
IA-5495 In the Matter of John Thomas Capital Management, Group LLC et al
Order extending time to issue decision
IA-5494 In the Matter of Wendy Lieberman Kirkland, et al
Misrepresented the profitability and historical performance results of various options-trading strategies that Kirkland marketed and sold primarily to retail investors through various subscription services
Barred from association and prohibited from serving or acting as an employee, officer, director, member of an advisory board, investment adviser or depositor of, or principal underwriter for, a registered investment company or affiliated person of such investment adviser, depositor, or principal underwriter; Kirkland, Davis, and Schmidt ordered to each pay a civil money penalty of $40,000
IA-5493 Notice of Intention to Cancel Registration of Cheswold Lane Asset Management, LLC
IA-5492 In the Matter of Jerry E. Orellana
Submitted improper retail orders in primary offerings of municipal bonds
For a period of six month: suspended from association and suspended from participating in any offering of a penny stock; ordered to pay a civil monetary penalty of $25,000
IA-5491 In the Matter of Everest Capital LLC and Marko Dimitrijevic
Acts inconsistent with disclosures regarding investment concentration and risk controls as they pertained to their management of the Everest Capital Global Fund, L.P.
Ordered to pay disgorgement, prejudgment interest, and a civil money penalty
IA-5490 In the Matter of Monsoon Capital, LLC and Gautam Prakash
Misuse of over $1 million of private fund assets prohibited from serving or acting as an employee, officer, director, member of an advisory board, investment adviser or depositor of, or principal underwriter for, a registered investment company or affiliated person of such investment adviser, depositor, or principal underwriter; ordered to pay a civil monetary penalty of $100,000
IA-5489 In the Matter of Semper Capital Management, L.P.
Value of securities were overstated resulting in mark-ups to prices; policies and procedures failed to provide sufficient oversight; made misleading disclosures
Ordered to pay disgorgement and prejudgment interest and a civil monetary penalty of $375,000
IA-5488 Edmunds Private Capital, LLC
Notice of Application requesting that the SEC issue an order declaring it to be a person not within the intent of section 202(a)(11) of the Advisers Act, which defines he term “investment adviser”
IA-5487 In the Matter of RBC Capital Markets, LLC
Disadvantaged retirement plan and charitable organization brokerage customers who maintained accounts at RBC by failing to ascertain that they were eligible for a less expensive share class, and recommending and selling them more expensive share classes in certain open-end registered investment companies when less expensive share classes were available
Ordered to pay disgorgement, prejudgment interest, and a civil monetary penalty of $650,000
IA-5486 In the Matter of Stephen Douglas Pizzuti
Pled guilty to one count of concealment of assets in a bankruptcy case
Public hearing ordered
IA-5485 In the Matter of Monomoy Capital Management, LP
Settled charges against Private Equity Fund Adviser with conflicted expense reimbursements
Ordered to pay disgorgement, prejudgment interest and a civil penalty of $200,000
LR-24805 SEC v. Aequitas Management, LLC, et al.
Former Executives and Investment Group Settle Fraud Action
IA-5484 In the Matter of Scott Gillis, CPA
Engaged in a scheme to defraud and make materially false and misleading statements to investors regarding the financial condition of the Aequitas companies, the use of investor funds, and the collateral that backed the securities
Barred from association and suspended from appearing or practicing before the Commission as an accountant
IA-5483 In the Matter of Brian A. Oliver
Engaged in a scheme to defraud and make materially false and misleading statements to investors regarding the financial condition of the Aequitas companies, the use of investor funds, and the collateral that backed the securities; pled guilty to mail & wire fraud and money laundering
Barred from association
IA-5482 In the Matter of Robert J. Jesenik
Engaged in a scheme to defraud and make materially false and misleading statements to investors regarding the financial condition of the Aequitas companies, the use of investor funds, and the collateral that backed the securities; pled guilty to mail & wire fraud and money laundering
Barred from association
IA-5481 In the Matter of James Arthur Young, III
In criminal case, pled guilty to wire fraud and failure to file tax returns; had solicited investors to invest in fraudulent "side investments"
Barred from association and barred from participating in any offering of a penny stock
LR-24801 SEC v. Bekkedam
SEC Settles Securities Fraud Charges Against Former Investment Adviser
SEC Orders Self-Reporting Advisory Firms to Reimburse Investors
IA-5480 In the Matter of Eagle Strategies LLC
IA-5479 In the Matter of Merrill Lynch, Pierce, Fenner & Smith, Incorporated
IA-5477 In the Matter of Cozad Asset Management, Inc.
Breaches of fiduciary duty and inadequate disclosures in connection with its mutual fund share class selection practices and the fees its affiliated broker received; Respondents self-reported to the SEC as part of the Share Class Selection Disclosure Initiative
Ordered to pay disgorgement and prejudgment interest
IA-5478 In the Matter of Old Ironsides Energy, LLC
Advertising & compliance failures related to its marketing of a private fund
Ordered to pay $1 Million penalty
Division of Investment Management Coronavirus (COVID-19) Response FAQs
Added to the IA Act UnwrappedTM Examination Tools Database/2020 Information and linked to associated Rules in the Regulatory Database Plain English Desciption Tabs
IA-5476 In the Matter of Sung Kook Hwang
Order vacating bar.
IA-5475 D.B. Fitzpatrick & Co., Inc.; Notice of Application
Application for exemptive order under Rule 206(4)-5(a)
Added to the IA Act UnwrappedTM Releases Database and to the No-Action/Exemptive Requests Tab under Regulatory Database Rule 206(4)-5
Examinations that Focus on Compliance with Form CRS
Examinations that Focus on Compliance with Regulation Best Interest
OCIE Risk Alerts added to the IA Act UnwrappedTM Examination Tools Database/2020 Information
IA-5474 In the Matter of Geoffrey J. Thompson
In civil case, convicted of selling shares with no registration statement in effect for the sales of the shares, and that the sales were not exempt from the registration requirements
Barred from association for 5 years
IA-5473 In the Matter of John Thomas Capital Management Group LLC and George R. Jarkesy Jr.
Order Extending Time to Issue Decision
Statement on Hearing Requests on Applications Filed under the Investment Company Act of 1940 and Investment Advisers Act of 1940
Division of Investment Management Staff Statement IM-INFO-2020-03
Added to the IA Act UnwrappedTM Examination Tools Database/2020 Information
Investors Remain Front of Mind at the SEC: Approach to Allocation of Resources, Oversight and Rulemaking; Implementation of Regulation Best Interest and Form CRS
Remarks by SEC Chairman Jay Clayton
Added to the IA Act UnwrappedTM Examination Tools Database/2020 Information
IA-5472 In the Matter of Barton W. Stuck
Order granting extension
IA-5471 In the Matter of Adam Matthew Root
In civil case, convicted of making material misrepresentations and omissions in order to induce prospective investors to invest in funds
Barred from association for 10 years
IA-5470 Regulatory Flexibility Agenda
Getting Back to Basics - Protecting, Serving, and Empowering Investors
Remarks by SEC Commissioner Allison Herren Lee before the Investment Advisers Association Compliance Conference
- Investment Adviser Advertising
- Climate Risk Disclosure
- Proxy Reform
Added to the IA Act UnwrappedTM Examination Tools Database/2020 Information
LR-24780 SEC v. Donald H. Hunter
SEC Charges Investment Adviser for Failing to Disclose Conflicts
IA-5468 In the Matter of Nicholas J. Genovese
In criminal case, convicted of securities fraud
Public hearing ordered
IA-5469 SEC Extends Conditional Exemptions From Reporting and Proxy Delivery Requirements
Form ADV & Form PF Filing Date Extended to June 30, 2020
IA-5467 In re: Pending Administrative Proceedings
The SEC orders that parties shall to the extent possible submit all filings to the Commission by sending them electronically at apfilings@sec.gov. The SEC will also continue to accept paper filings sent to the Office of the Secretary, although processing of documents received only via mail may be delayed.
LR-24773 SEC v. Brandon E. Copeland and E.B. & Copeland Capital, Inc.
Recidivist IA Charged with Fraud
IA-5456 In the Matter of E. Herbert Hafen
Fraud
Barred from association and barred from participating in any offerin gof a penny stock.
IA-5455 In the Matter of Daniel B. Vazquez, Sr.
Fraud
Public hearing ordered
LR-24769 SEC v. Stacey Beane, Justin Deckert and Travis Laska
Falsified Records in Connection with IA Ponzi Scheme Investigation
LR-24767 SEC v. Kinetic Investment Group, LLC, et al
SEC Halts Fraudulent Offering by Florida Investment Adviser
LR-24764 SEC v. E. Herbert Hafen
Final Judgment Against Former IA Charged with Defrauding Clients
IA-5466 In the Matter of Randall S. Goulding
Order Scheduling Briefing on Motion for Summary Disposition
IA-5465 In the Matter of Marcus Boggs
Stole from advisory clients; misappropriated clients' money
Barred from association and barred from participating in any offering of a penny stock
IA-5464 In the Matter of HSBC Securities (USA) Inc.
Misleading Disclosures Concerning IAR Compensation
Ordered to pay a civil monetary penalty of $750,000
IA-5462 In the Matter of Motty Mizrahi
Operated a fraudulent investment advisory scheme
Barred from association
IA-5461 In the Matter of Naya Ventures, LLC, Dayakar Puskoor, and Prabhakar Reddy
Respondents neglected to establish an Investor Advisory Committee; neglected to provide Audited Financial Statements
Ordered to pay civil monetary penalties
IA-5460 In the Matter of Bruce C. Worthington
Misappropriated investor funds
Public hearing ordered
IA-5458 In the Matter of Eric D. Lyons
Misused and misappropriated funds
Barred from association
IA-5457 In the Matter of Motty Mizrahi
Operated fraudulent investment advisory scheme
Public hearing ordered
IA-5463 Order under Section 206 of the Investment Advisers Act of 1940 Granting Exemptions from Speicified Provisions of the Investment Advisers Act and Certain Rules Thereunder
Order granting extention to file Form ADV and Form PF until April 30, 2020
IA-5459 In the Matter of John Thomas Capital Management Group LLC and George R. Jarkesy Jr.
Time to issue Decision is extended to 04/06/2020
IA-5454 Exemptions From Investment Adviser Registration for Advisers to Certain Rural Business Investment Companies
FINAL RULE
Release added to the IA Act UnwrappedTM Releases Database; amendments reflected under Regulatory Database Rules 203(l)-1 & 203(m)-1
IA-5453 In the Matter of Sica Wealth Management, LLC and Jeffrey C. Sica
IA-5452 In the Matter of Fortress Investment Management, LLC and William M. Malloy
Improper SEC registration and failure to disclose conflict of interest
The order also suspends Malloy from the industry for twelve months. Sica, Malloy, and their related entities have agreed to pay approximately $564,000 to resolve the SEC's charges, including disgorgement of the advisory fees they charged during the time of their violations, which will be used to fund a distribution to harmed investors.
IA-5451 In the Matter of Wells Fargo Clearing Services, LLC and Wells Fargo Advisers Financial Network, LLC
Made unsuitable recommendations to clients; inadequately trained compliance
IA-5450 In the Matter of Steven E. Fishman
Annual audited financial statements prepared in accordance with GAAP were not distributed to some of the investors in its funds for fiscal years 2014 through 2017 Custody Rule 206(4)-2 violations
Added to the IA Act UnwrappedTM Releases Database and to the Significant Cases Tab under Regulatory Database Rule 206(4)-2
LR-24747 SEC v. Dionne Van Zyl
SEC Charges Georgia Businessman with Affinity Fraud Focused on Christian Investors
IA-5449 In the Matter of Matthew R. Rosse and SJL Capital LLC
Order granting request for Protective Order limiting disclosure of the Form D-A
IA-5448 In the Matter of Lone Star Value Management, LLC and Jeffrey Eberwein
Engaged in principal transactions without disclosure; compliance program rule violations
Ordered to pay civil monetary penalties
IA-5447 In the Matter of Marcus Boggs
Stole over $1.7 million from investment advisory clients; misappropriated clients’ money by selling securities in their advisory accounts and then transferring the proceeds to his personal credit card account; made illegal transfers from clients’ accounts to pay for personal credit card purchases
Public hearing ordered
LR-24744 SEC v. Navellier & Associates, Inc., and Louis Navellier
Partial Summary Judgment Against IA and Principal for False and Misleading Marketing of Investment Strategies
IA-5446 Delegation of Authority to the General Counsel of the Commission
Final Rule
LR-24739 SEC v. Richard G. Cody, et al.
Judgment Against Former Massachusetts-Based IA Charged with Defrauding Retirees
IA-5444 In the Matter of BPU Investment Management, Inc.
Breaches of fiduciary duty in connection with its mutual fund share class selection practices and its receipt of fees; disclosure failures; best execution failures; compliance deficiencies; did not self-report under the SCSD Initiative
Ordered to pay disgorgement, prejudgment interest, and a civil penalty, totaling $927,107
LR-24738 SEC v. Criterion Wealth Management Insurance Services, Inc., et al
SEC Charges IAs with Failure to Disclose Financial Conflicts of Interest
LR-24736 SEC v. The Nutmeg Group LLC, et al
SEC Obtains Judgment Against Former IA CCO
IA-5443 In the Matter of Joseph A. Meyer, Jr.
In connection with the sale of limited partnership interests, falsely stated to investors that funds were guaranteed against losses, misappropriated fund assets, sent out false account statements indicating that investors funds were fully invested and earning positive returns without disclosing that such returns were backed in significant part by unsecured promissory notes
Public hearing ordered
IA-5442 In the Matter of Jay Costa Kelter
Engaged in a scheme to defraud investment advisory clients - made material misrepresentations to clients in connection with the purchase, sale, and offer of securities, including misrepresentations concerning the use of client funds; misappropriated over $1.4 million from a client by forging the client’s name on withdrawal requests or misprepresenting the nature of the withdrawals to the client
Barred from association
IA-5441 In the Matter of Cannell Capital, LLC
CCL failed to establish, maintain, and enforce written policies and procedures reasonably designed, taking into consideration the nature of its business, to prevent the misuse of material nonpublic information; failed to follow its written policies and procedures by not maintaining a list of securities that members, officers, and employees (“covered persons”) and their family household members were prohibited from trading after the firm came into possession of potential material nonpublic information; CCL’s written policies and procedures related to the handling of material nonpublic information were not reasonably designed to prevent misuse of material nonpublic information because they did not address any business-specific risks and lacked any guidance regarding when trading in securities should be restricted.
Ordered to pay a $150,000 civil monetary penalty
Myths and Realities: Modernizing the Proxy Rules
Speech by SEC Commissioner Elad L. Roisman
Added to the IA Act UnwrappedTM Examination Tools Database/2020 Information and to the Plain English Description Tab under Regulatory Database Rule 206(4)-6
IA-5440 In the Matter of Edward E. Matthes
Judgment entered by consent against Matthes for defrauding mostly elderly retail brokerage and investment advisory clients; Ponzi-like scheme
Barred from association and barred from participating in any offering of a penny stock
IA-5439 In the Matter of Barton W. Stuck
In Connecticut case, convicted of wire fraud, money laundering and making false statements to the SEC
Public hearing ordered
IA-5438 In the Matter of Patrick L. O'Connor
Order regarding status reports
IA-5437 In the Matter of Jaswant Gill
Order to Show Cause
IA-5436 In the Matter of Catalyst Capital Advisors, LLC and Jerry Szilagyi
Misled investors about the management of risk in a mutual fund
President and CEO, Szilagyi, agreed to pay a combined $10.5 million to settle the charges. The SEC also filed a complaint against Senior Portfolio Manager, Edward Walczak, for fraudulently misrepresenting how he would manage risk for the fund.
Cybersecurity and Resiliency Observations
OCIE examination observations related to cybersecurity and operational resiliency practices taken by market participants
Added to the IA Act UnwrappedTM Examination Tools Database/2020 Information
IA-5366A In the Matter of Leonardo Cornide and Jorge Falcon
Amended Order - failure to disclose conflicts of interest
IA-5435 In the Matter of John Thomas Capital Management Group LLC and George R. Jarkesy Jr.
Order extending time to issue decision
IA-5434 In the Matter of Inter-American Development Bank
Order granting exemption under Advisers Act Sec. 202(a)(11)(H)
IA-5433 In the Matter of Mark J. Moskowitz
Ordered to file an answer to the allegations made in the OIP and also ordered to make the filing directed by the Show Cause Order
IA-5432 In the Matter of Lester W. Burroughs
In criminal case, pled guilty to misappropriating investor funds
Barred from association and barred from participating in any offering of a penny stock
LR-24714 SEC v. Michael B. Rothenberg
Court orders technology fund adviser to pay over $31mil - misappropriated investor funds
Frequently Asked Questions on Regulation Best Interest
Topics include: Recommendation; Disclosure Obligation; Care Obligation; and Conflict of Interest Obligation
Added to the IA Act UnwrappedTM Examination Tools Database/2020 Information, and linked to the term "Regulation Best Interest" in the Glossary & Definitions Database
IA-5431 In the Matter of Michael Mindlin
Insider trading
For 3 years, barred from association and prohibited from serving or acting as an employee, officer, director, member of an advisory board, investment adviser or depositor of, or principal underwriter for, a registered investment company or affiliated person of such investment adviser, depositor, or principal underwriter; ordered to pay disgorgement of $60,482, representing the performance-based compensation he received as a result of the 2014 purchase of HCA stock, prejudgment interest of $13,122, and a civil money penalty of $60,482
IA-5430 In the Matter of Patrick L. O'Connor
Order Regarding Service
IA-5429 In the Matter of J.P. Morgan Securities LLC
Disadvantaged certain retirement plan and charitable organization brokerage customers who maintained accounts at JPMS by failing to ascertain that they were eligible for a less expensive share class, and recommending and selling them more expensive share classes in certain open-end registered investment companies (“mutual funds”) when less expensive share classes were available
Censured and ordered to pay disgorgement of $251,083, prejudgment interest of $71,355, and civil penalties of $1,500,000
IA-5428 Adjustments to Civil Monetary Penalty Amounts
Notice of Annual Inflation Adjustment of Civil Monetary Penalties
IA-5427 In the Matter of Bradley C. Mascho
Fraud; Ponzi-like scheme
Barred from association and barred from participating in any offering of a penny stock
LR-24710 SEC v. ARO Equity, LCC et al
SEC Charges Private Investment Firm with Fraudulently Misleading Investors
CIE 2020 National Examination Priorities
Publication has been added to the IA Act UnwrappedTM Examination Tools Database/2020 Information
LR-24709 SEC v. Kelter
Fraud judgment against former IA
IA-5425 In the Matter of Randall S. Goulding
Extension Order
IA-5424 In the Matter of Stephen Condon Peters
In criminal proceeding, convicted of defrauding investors and obtained money and property by means of materially false and misleading statements in connection with the fraudulent sale of notes to investment advisory clients
Public hearing ordered
IA-5423 In the Matter of Christopher S. Laws
In civil case found to have fraudulently induced federal employees to rollover significant funds from their federal retirement accounts
Barred from association and barred from participating in any offering of a penny stock
IA-5422 Amendments to Rule 2-01, Qualification of Accountants
Proposing Release has been added to the IA Act UnwrappedTM Releases Database
IA-5421 In the Matter of Bill Tsai
Insider trading
Barred from association and barred from participating in any offering of a penny stock
IA-5420 Inter-American Development Bank; Notice of Application
Notice of application for an exemption under Advisers Act. Sec. 202(a)(11)(H)
IA-5419 In the Matter of Karen Bruton and Hope Advisors, LLC
Initial Decision has become final
IA-5418 In the Matter of Tim Leissner
Massive corruption scheme in coordination with other Goldman Sachs senior executives - authorized and paid bribes and kickbacks to government officials in Malaysia and the Emirate of Abu Dhabi in order to secure lucrative business for Goldman Sachs.
Barred from association; prohibited from serving or acting as an employee, officer, director, member of an advisory board, investment adviser or depositor of, or principal underwriter for, a registered investment company or affiliated person of such investment adviser, depositor, or principal underwriter; and barred from participating in any offering of a penny stock
IA-5417 In the Matter of Randall S. Goulding
In civil action, found to have commingled investor funds with his personal assets, implemented flawed internal systems and methods for valuing and reporting the value of assets under management, and transferred millions of dollars out of client accounts to himself and companies controlled by family members
Public hearing ordered
IA-5416 In the Matter of Kornitzer Capital Management, Inc., and John C. Kornitzer
Repeated failures to follow client instructions to reduce high concentrations in securities of a single company held by four collective investment trusts (“CITs”).
Ordered to pay disgorgement, prejudgment interest, and a civil money penalty
IA-5415 In the Matter of Ronald J. Roach
Deceived investors in securities offered by certain solar energy companies
Barred from association and barred from participating in any offering of a penny stock
IA-5414 In the Matter of International Investment Group, LLC
Grossly overstated value of defaulted loans in the fund’s portfolio to conceal losses in its flagship hedge fund
IIG’s investment adviser registration is revoked
LR-24695 SEC v. Keith Springer and Springer Investment Management, Inc.
SEC Charges Recidivist Investment Adviser with Defrauding Retirees
Robert Van Grover Esq., Seward & Kissel LLP
No-action letter - Rule 206(4)-2
Added to the IA Act UnwrappedTM Regulatory Database Rule 206(4)-2: Custody No-Action Letter Tab
LR-24681 SEC v. Lester Burroughs
Charged wtih misappropriating $560,000 from his advisory clients by selling fictitious financial products and using the proceeds to pay other advisory clients, as well as for personal use
IA-5413 Use of Derivatives by Registered Investment Companies and Business Development Companies; Required Due Diligence by Broker-Dealers and Registered Investment Advisers Regarding Retail Customers’ Transactions in Certain Leveraged/Inverse Investment Vehicles
Proposing Release - Added to the IA Act UnwrappedTM Releases Database
Frequently Asked Questions on Form CRS
Added to the IA Act UnwrappedTM Regulatory Database, Rule 204-5: Delivery of Form CRS
IA-5415 In the Matter of Ronald J. Roach
Scheme to defraud
Barred from association and barred from participating in any offering of a penny stock
LR-24677 SEC v. The Nutmeg Group LLC and Randall Goulding
SEC Wins Trial and $1.8 Million Judgment Against IA for Defrauding Clients
IA-5414 In the Matter of International Investment Group, LLC
Defrauded investment advisory clinets - concealed losses in the portfolio of its flagship hedge fund by overstating the value of certain defaulted trade finance loans and by replacing defaulted loans with fake loans
IA registration revoked
IA-5412 In the Matter of Channing Capital Management, LLC
Failure to adequately implement written policies and procedures governing the allocation of trading commission costs associated with aggregated (or block) securities trades on behalf of its institutional investor and pension fund clients
Ordered to pay a civil moetary penalty of $50,000
IA-5411 In the Matter of Lawrence Allen Deshetler
OPINION - Respondent was convicted of mail fraud
Barred from association
LR-24670 SEC v. Ruless Pierre a/k/a Rules Pierre
Charges for Running a Community-Based Ponzi Scheme Targeting the Haitian Community
IA-5410 In the Matter of William Harper Minor, Jr.
Order to Show Cause why he should not be deemed to be in default
LR-24664 SEC v. Gregory M. Bercowy
Court Sentences FL Resident to Prison and Orders Payment of over $3 Million in Market Manipulation Scheme
IA-5409 In the Matter of Daniel Sholom Frishberg
Renewed Order Requesting Additional Written Submission
IA-5408 In the Matter of Morgan Stanley Smith Barney LLC
Charges in Connection with Mutual Fund Sales to Retirement and Charitable Accounts
IA-5406 In the Matter of James T. Booth
In criminal case, convicted of misappropriating investor funds
Barred from association and barred from participating in any offering of a penny stock
IA-5405 In the Matter of Cameron G. High
In criminal case, convicted of defrauding invetors
Barred from association and barred from participating in any offering of a penny stock
IA-5404 In the Matter of Thomas D. Conrad, Jr.
In civil case, convicted of failing to disclose disciplinary history to potential investors and allowing disbursements and redemptions from the hedge funds to certain favored investors while blocking others.
Public hearing ordered
Enforcement Division Annual Report - FY19
Added to the IA Act UnwrappedTM Examination Tools Database/2019 Information
LR-24660 SEC v. Bolton Securities Corporation d/b/a Bolton Global Asset Management
SEC Charges IA for Failing to Disclose Conflicts
IA-5407 Investment Adviser Advertisements; Compensation for Solicitations
Proposing Release
Securities Industry and Financial Markets Association
Extention of Temporary No-Action Letter - Advisers Act Sec. 202(a)(11)
FAQs Regarding Disclosure of Certain Financial Conflicts Related to Investment Adviser Compensation
Division of Investment Management
Added to the IA Act UnwrappedTM Examination Tools Database/2019 Information
Joint Statement on Activities Involving Digital Assets
Statement issued by the Leaders of CFTC, FinCEN, and SEC to remind persons engaged in activities involving digital assets of (AML/CFT) obligations
Added to the IA Act UnwrappedTM Examination Tools Database/2019 Information
LR-24643 SEC v. Cetera Advisors, LLC and Cetera Advisor Networks LLC
IA & BD Charged with Defrauding Advisory Clients
IA-5403 In the Matter of Albert K. Hu
Extension Order
IA-5402 In the Matter of Saving2Retire, LLC, and Marian P. Young
Order Granting Petition for Review and Scheduling Briefs
LR-24640 SEC v. Thomas Conrad, Jr. et al.
SEC Obtains Sanctions Against IA; fraudulent redemption practices and their failure to disclose disciplinary history
IA-5401 In the Matter of Michael Siva
LR-24638 SEC v. Daniel Rivas, et al.
Traders in serial insider trading scheme agree to settle SEC charges; In criminal case, pled guilty to insider trading
Barred from association and barred from participating in any offering of a penny stock
IA-5400 In the Matter of Mark Megalli
Notice that Initial Decision has become final
IA-5399 In the Matter of Daniel Sholom Frishberg
Order requesting additional written submission clarifying the relief sought in his application
LR-24633 SEC v. Westport Capital Markets, LLC and Christopher E. McClure
Partial Summary Judgment Against IA and Principal On Undisclosed Compensation Claims
LR-24632 SEC v. Bluepoint Investment Counsel, et al
Fraud Charges Related to Wisconsin Investment Fraud
LR-24829 SEC v. James T. Booth
SEC Charges Connecticut Man with Ponzi Scheme Defrauding Retail Investors
LR-24828 SEC v. Marcus Beam
SEC Charges IIIinois IA for Stealing His Clients' Money
LR-24617 SEC v. William M. Apostelos, et al.
Final Judgment Against Ohio Businessman in Multimillion-Dollar Offering Fraud
LR-24626 SEC v. Yellowstone Partners, LLC, David H. Hansen, and Cameron G. High
SEC Charges Former Idaho Falls IA and Its Former Principals for Fraudulently Overbilling Clients
IA-5369 In the Matter of Hefren-Tillotson, Inc.
SEC Orders Advisory Firm to Reimburse Clients for Taking Undisclosed Compensation; failure to provide best execution
Censured, ordered to pay disgorgement, prejudgment interest and an $80,000 civil penalty
IA-5368 In the Matter of Joseph B. Bronson
LR-24615 SEC v. Strong Investment Management, et al
Final Judgments and Bars Against Former IA and Senior Officers for Fraudulent "Cherry-Picking" Scheme
IA-5367 In the Matter of Nicholas Lattanzio
In criminal case, found guilty of participating in fraudulent scheme to mislead investors and clients as to their investment in the Fund
Barred from association
IA-5366 In the Matter of Leonardo Cornide and Jorge Falcon
Two South Florida IAs to Repay Millions of Dollars for Failing to Disclose Conflicts of Interest
Unlawful Proxy Voting of Client Securities:
IA-5375 In the Matter of Three Bridge Wealth Advisors, LLC
IA-5374 In the Matter of Amadeus Wealth Advisors, LLC
Added to the IA Act UnwrappedTM Releases Database and to the Risks/Significant Cases Tab under Regulatory Database Rule 206(4)-6
IA-5371 In the Matter of Cetera Investment Advisers LLC
Violated Cash Solicitation Rule
Censured and ordered to pay a civil monetary penalty of $185,000
Added to the IA Act UnwrappedTM Releases Database and to Risks/Significant Cases under Regulatory Database Rule 206(4)-2 Cash Payments for Client Solicitations
Oversight of the SEC: Wall Street’s Cop on the Beat
Testimony Before the U.S. House of Representatives Committee on Financial Services
Added to the IA Act UnwrappedTM Examination Tools Database/2019 Information
