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SEC Sanctions Database

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John Place, John Kirk, Paul Kirk

Defendants were senior executives of a brokerage consulting business, Global Transition Solutions, LLC. They consented to the entry of final judgments in a case alleging that they deceived customers and prospective customers by telling them that GTS would receive only clearly disclosed commissions on trades when, in reality, GTS also received additional revenue from mark-ups and mark-downs charged by other brokers and shared with GTS.

Defendants:
John Place, John Kirk, Paul Kirk
Sanction Amount:
$1498871
Announcement Date:
2019-07-31
Violation
Trading and Pricing
Key Docs
Official SEC press release
37.4851 -122.148
Facebook Inc.

Defendant agreed to settle charges that it misled investors regarding the risk of misuse of its user data. The Commission alleged that, despite a discovered misuse via Cambridge Analytica, the company continued to tell investors that “users’ data may be improperly accessed, used or disclosed.” (emphasis added). And subsequent disclosure of the Cambridge Analytica incident allegedly caused a drop in the stock price.

Defendants:
Facebook Inc.
Sanction Amount:
$100000000
Announcement Date:
2019-07-24
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Robert L. Baker, Jacob B. Herrera, Michael D. Bowen

The Commission found that Respondents were salesmen/cold-callers selling oil-and-gas interests as part of unregistered offerings. They settled charges of willfully violating securities laws through participation in the fraud perpetrated by "frack master" Christopher A. Faulkner.

Defendants:
Robert L. Baker, Jacob B. Herrera, Michael D. Bowen
Sanction Amount:
8075192.04
Announcement Date:
2019-07-24
Violation
Offering Fraud
Key Docs
Official SEC press release
47.6423 -122.137
Microsoft Corporation

The SEC charged Respondent Microsoft with FCPA violations based on the operations of subsidiaries in four different foreign locales: Hungary, Saudi Arabia, Thailand, and Turkey. Typical tactics such as providing excessive discounts to be passed along, and improper travel and gifts from slush funds, were alleged. Microsoft agreed to settle.

Defendants:
Microsoft Corporation
Sanction Amount:
$16565151
Announcement Date:
2019-07-22
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
0 0
Kentucky-Tennessee 50 Wells/400 BBLPD Block, Limited Partnership, Carol J. Wayland, Mitchell B. Dow, Barry Liss, Steve G. Blasko

Combined sanction from final judgments entered against a purported oil well company, its founder, and three boiler room promoter/operators who allegedly fraudulently offered and sold unregistered securities to investors.

Defendants:
Kentucky-Tennessee 50 Wells/400 BBLPD Block, Limited Partnership
Carol J. Wayland, Mitchell B. Dow, Barry Liss, Steve G. Blasko
Sanction Amount:
$1469795
Announcement Date:
2019-07-19
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Zev Saltsman, Menachem Eitan, Martin E. Weisberg, Edward G. Newman, Steven A. Newman, Andrew Brown

Combined sanction as against three Defendants (S. Newman, Eitan and Saltsman). (The litigation was resolved as against five-of-six Defendants and continuing against the remaining Defendant, Brown, at the time of this writing.) The SEC charged Defendants with participation in a fraudulent scheme involving two public companies - Xybernaut Corporation and Ramp Corporation - the object of which was to secretly purchase controlling blocks of the companies' stock and profit by executing short sales and covering with new, unregistered shares.

Defendants:
Zev Saltsman, Menachem Eitan, Martin E. Weisberg, Edward G. Newman, Steven A. Newman, Andrew Brown
Sanction Amount:
$5929100
Announcement Date:
2019-07-17
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7597 -73.9717
AR Capital LLC, Nicholas S. Schorsch, Brian Block

Defendants, in connection with a pair of REIT mergers, allegedly inflated their incentive fees in breach of the relevant proxy disclosures. They also allegedly obtained unsupported charges/fees from asset purchase and sale agreements entered into in connection with the mergers. They agreed to settle the charges.

Defendants:
AR Capital LLC
Nicholas S. Schorsch, Brian Block
Sanction Amount:
Approximately $60,750,000
Announcement Date:
2019-07-16
Violation
Financial Fraud
Key Docs
Official SEC press release
30.1732 -95.4734
Conn's Inc. and Michael J. Poppe

Sanction represents a settlement with a specialty retailer to credit-restrained customers and its former COO, for understating the company's allowance for bad debts after increasing its risk and (thereby) overstating income on its financial statements.

Defendants:
Conn's Inc.
Michael J. Poppe
Sanction Amount:
$1150000
Announcement Date:
2019-07-15
Violation
Financial Fraud
Key Docs
Official SEC press release
40.762 -73.987
Nomura Securities International Inc.

Settled charges of failure to supervise traders of commercial and residential mortgage-backed securities.

Defendants:
Nomura Securities International Inc.
Sanction Amount:
Approximately $25,000,000
Announcement Date:
2019-07-15
Violation
Trading and Pricing
Key Docs
Official SEC press release
42.03 -71.2496
Fieldstone Financial Management Group LLC, Kristofor R. Behn

Respondents agreed to settle charges of: (1) defrauding retail investment advisory clients by failing to disclose conflicts of interest related to investment recommendations; and (2) misappropriating approximately $500,000 of one investor’s funds to pay personal expenses.

Defendants:
Fieldstone Financial Management Group LLC
Kristofor R. Behn
Sanction Amount:
$1322971
Announcement Date:
2019-07-01
Violation
Trading and Pricing
Key Docs
Official SEC press release
38.7301 -75.1325
Matthew A. Krimm, Krimm Financial Services, LLC

Defendants fraudulently induced numerous investments in an unregistered offering of promissory notes by falsely claiming that they owned and operated a highly successful mortgage loan business. Over 75% of money raised from new investors was used to pay Krimm's personal expenses and to make Ponzi-like payments.

Defendants:
Krimm Financial Services, LLC
Matthew A. Krimm
Sanction Amount:
$1988351
Announcement Date:
2019-06-27
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Amrit J. S. Chahal

Defendant was sanctioned for orchestrating a multi-year investment fraud using his company, Kane Capital Investment Group, LLC, to fraudulently solicit approximately $1.4 million from about 50 individuals, including friends and family members. He originally did invest his investors' money, but after significant losses he began misappropriating it.

Defendants:
Amrit J. S. Chahal
Sanction Amount:
$1232510
Announcement Date:
2019-06-27
Violation
Financial Fraud
Key Docs
Official SEC press release
42.3471 -71.0778
State Street Bank and Trust Company

Respondent agreed to settle charges that it overcharged mutual funds and other registered investment company clients for asset custody expenses, including a secret markup to the cost of sending secured financial "SWIFT" messages.

Defendants:
State Street Bank and Trust Company
Sanction Amount:
$88780000
Announcement Date:
2019-06-27
Violation
Trading and Pricing
Key Docs
Official SEC press release
36.8282 -76.1331
Edward Lee Moody, Jr., CM Capital Management, LLC

Defendant Moody, via his co-Defendant investment adviser firm, defrauded dozens of retail investors in a $5 million Ponzi scheme over a period of at least nine years.

Defendants:
CM Capital Management, LLC
Edward Lee Moody, Jr.
Sanction Amount:
$3057248
Announcement Date:
2019-06-21
Violation
Offering Fraud
Key Docs
Official SEC press release
36.3653 -94.2176
Walmart Inc.

Defendants:
Walmart Inc.
Sanction Amount:
$144691172
Announcement Date:
2019-06-20
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
32.7349 -117.216
Equal Earth, Inc., Andrew J. Duggan, Ghassan "Mark" Hamade

Defendants were a green energy company and its CEO and COO. They agreed to settle charges that, inter alia, they made materially misleading/false representations and suggestions to investors concerning Equal Earth's financial health, including that it was a fast-growing company that would soon go public based on significant historical revenues, acquisitions of multiple companies that could generate future revenue, and secured projects with significant power generation capacity.

Defendants:
Equal Earth, Inc.
Andrew J. Duggan, Ghassan "Mark" Hamade
Sanction Amount:
Approximately $8,790,000
Announcement Date:
2019-06-18
Violation
Offering Fraud
Key Docs
Official SEC press release
34.0504 -118.261
Wedbush Securities, Inc.

The Commission found that Respondent improperly obtained pre-released ADRs from depositary banks when it should have known that neither the firm nor its customers owned the foreign shares needed to support them. This led to inappropriate short selling and dividend arbitrage.

Defendants:
Wedbush Securities, Inc.
Sanction Amount:
$8109249
Announcement Date:
2019-06-18
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7579 -73.9722
KPMG LLP

The Commission charged that Respondent altered past audit work after receiving stolen information about inspections of the firm that would be conducted by the PCAOB, and also that "numerous" of its audit professionals cheated on internal training exams. Respondent agreed to settle the charges.

Defendants:
KPMG LLP
Sanction Amount:
$50000000
Announcement Date:
2019-06-17
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7621 -73.9846
Industrial and Commercial Bank of China Financial Services LLC

The Commission found that Respondent improperly obtained pre-released ADRs from depositary banks when it should have known that neither the firm nor its customers owned the foreign shares needed to support them. This led to inappropriate short selling and dividend arbitrage.

Defendants:
Industrial and Commercial Bank of China Financial Services LLC
Sanction Amount:
$42835192
Announcement Date:
2019-06-14
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
DFRF Enterprises LLC, DFRF Enterprises, LLC, Daniel Fernandes Rojo Filho, Wanderley M. Dalman, Gaspar C. Jesus , Eduardo N. Da Silva, Heriberto C. Perez Valdes, Jeffrey A. Feldman, Romildo Da Cunha

Final judgments as against certain Defendants (Valdes and the DFRF Enterprises entities), for their alleged roles in a pyramid and Ponzi scheme. Investors in Spanish and Portuguese-speaking communities were targeted and falsely told that the DFRF entities owned more than 50 gold mines in Africa and Brazil, and that their investments would be fully insured and guaranteed.

Defendants:
DFRF Enterprises LLC, DFRF Enterprises, LLC
Daniel Fernandes Rojo Filho, Wanderley M. Dalman, Gaspar C. Jesus , Eduardo N. Da Silva, Heriberto C. Perez Valdes, Jeffrey A. Feldman, Romildo Da Cunha
Sanction Amount:
$20599595
Announcement Date:
2019-06-11
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Kimberly Pine Kitts

Defendant investment adviser stole over $3 million from multiple clients, using forged signatures on variable annuity withdrawal requests and on wire requests from brokerage accounts, and by misleading clients into withdrawing funds to make fake tax payments.

Defendants:
Kimberly Pine Kitts
Sanction Amount:
$2882221
Announcement Date:
2019-06-11
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7041 -74.0111
Longfin Corp., Venkata S. Meenavalli, Andy Altahawi, Dorababu Penumarthi, Suresh Tammineedi

Partial settlement (Altahawi, Penumarthi, and Tammineedi) of charges of fraud and illegally distributing and selling stock of purported cryptocurrency company Longfin Corp. in unregistered transactions.

Defendants:
Longfin Corp.
Venkata S. Meenavalli, Andy Altahawi, Dorababu Penumarthi, Suresh Tammineedi
Sanction Amount:
Approximately $25,841,000
Announcement Date:
2019-06-05
Violation
Financial Fraud
Key Docs
Official SEC press release
40.457 -106.813
Deer Park Road Management Company LP, Scott Burg

The entity Respondent, an investment adviser and private fund manager in the mortgage-backed securities space, and its chief investment officer agreed to settle charges of compliance deficiencies that contributed to false valuations of certain securities in its flagship fund. Traders allegedly were undervaluing securities/bonds and selling for a profit when needed, including by providing inaccurate information to a pricing vendor and then using the prices it got back for valuations.

Defendants:
Deer Park Road Management Company LP
Scott Burg
Sanction Amount:
$5250000
Announcement Date:
2019-06-04
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
James E. Hocker

The Defendant, an insurance agent, stole nearly $1.5 million from retail investors by falsely promising guaranteed returns of between 10% and 30% from investments he would make on their behalf in the S&P 500 and other unspecified investment vehicles. In actuality, Hocker did not invest any of the funds and simply kept them for personal use.

Defendants:
James E. Hocker
Sanction Amount:
$1495782
Announcement Date:
2019-06-04
Violation
Offering Fraud
Key Docs
Official SEC press release
40.6438 -73.5946
Craig Carton, AdvanceM Ltd., Misoluki, Inc., Misoluki, LLC, Ticket Jones, LLC, Tier One Tickets, LLC

Defendants agreed to settle charges that they, along with several others, solicited investments for the bulk purchase and resale of tickets to popular Broadway shows and concerts, but used the majority of the funds raised from investors to make payments to earlier investors and to enrich themselves. Carton was previously found guilty in a parallel criminal case.

Defendants:
AdvanceM Ltd., Misoluki, Inc., Misoluki, LLC, Ticket Jones, LLC, Tier One Tickets, LLC
Craig Carton
Sanction Amount:
Approximately $4,700,000
Announcement Date:
2019-05-31
Violation
Offering Fraud
Key Docs
Official SEC press release
40.6665 -73.5536
Donald A. Milne III, Instaprin Pharmaceuticals, Inc.

Defendants consented to entry of the judgment including this combined sanction, in an enforcement action where the SEC alleged that they defrauded numerous (including many elderly) investors. Investors were allegedly told their money would be used for the operating expenses of Instaprin Pharmaceuticals, which was purportedly developing a revolutionary fast acting aspirin to instantly stop heart attacks and strokes, whereas Milne instead used it largely for personal expenses.

Defendants:
Instaprin Pharmaceuticals, Inc.
Donald A. Milne III
Sanction Amount:
$6954119
Announcement Date:
2019-05-30
Violation
Offering Fraud
Key Docs
Official SEC press release
35.9263 -84.1275
H. Craig Dees, Provectus Biopharmaceuticals, Inc., Peter R. Culpepper

Former CEO and CFO allegedly misused funds of biopharmaceutical company for personal expenses, raiding the coffers by way of unauthorized and/or falsified perks and benefits that were not disclosed. CFO Culpepper settled the charges. A default judgment was entered against CEO Dees.

Defendants:
Provectus Biopharmaceuticals, Inc.
H. Craig Dees, Peter R. Culpepper
Sanction Amount:
5414145.46
Announcement Date:
2019-05-28
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Devon D. Archer, Bevan T. Cooney, Hugh Dunkerley, Jason W. Galanis, John P. Galanis, Gary T. Hirst, Michelle A. Morton, Francisco Martin

Case is ongoing at the time of this writing, but final judgment has been entered against Dunkerley, Jason and John Galanis, Hirst, and Martin. It appears all but Martin have been found guilty in parallel criminal proceedings. Investors were defrauded with sham Native American tribal bonds.

Defendants:
Devon D. Archer, Bevan T. Cooney, Hugh Dunkerley, Jason W. Galanis, John P. Galanis, Gary T. Hirst, Michelle A. Morton, Francisco Martin
Sanction Amount:
19698466.44
Announcement Date:
2019-05-28
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Howard M. Appel

Defendant and associates that he recruited and directed to buy and sell shares secretly acquired ownership or control over enough stock in three microcap companies that he effectively controlled the float. He then conducted matched trades to artificially create interest and drive up the trading price, after which he sold in real trades netting over $3 million in profits.

Defendants:
Howard M. Appel
Sanction Amount:
$4355947
Announcement Date:
2019-05-22
Violation
Market Manipulation
Key Docs
Official SEC press release
0 0
Andrew I. Farmer, Scott R. Sieck, Eddie D. Austin, Jr., Carolyn P. Austin, John D. Brotherton

Settled charges re: a series of pump-and-dump frauds. Defendants engaged in a pattern of obtaining control of all the freely trading stock of a penny stock (e.g., Valmie Resources, Inc.) and allocating the stock to front companies that they controlled. They then conducted coordinated trading to create the appearance of market interest in the stock.

Defendants:
Andrew I. Farmer, Scott R. Sieck, Eddie D. Austin, Jr., Carolyn P. Austin, John D. Brotherton
Sanction Amount:
$11145487
Announcement Date:
2019-05-17
Violation
Market Manipulation
Key Docs
Official SEC press release
0 0
Telefônica Brasil S.A.

Settlement of charges against a Brazilian telecommunications company, for violating the books and records and the internal accounting controls provisions of the FCPA. In particular, Respondent allegedly made improper gifts around a hospitality program that it hosted for the 2014 World Cup and 2013 Confederations Cup.

Defendants:
Telefônica Brasil S.A.
Sanction Amount:
$4125000
Announcement Date:
2019-05-09
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
0 0
Laurence M. Torres, William C. Gennity, Rocco Roveccio

Combined sanction as against three New York-based brokers, formerly associated with Alexander Capital L.P., who were charged with making unsuitable recommendations that resulted in substantial losses to customers and hefty commissions for the brokers.

Defendants:
Laurence M. Torres, William C. Gennity, Rocco Roveccio
Sanction Amount:
1038204.38
Announcement Date:
2019-05-06
Violation
Trading and Pricing
Key Docs
Official SEC press release
39.8167 -85.9977
Celadon Group Inc.

Settlement of charges that, between mid-2016 and April 2017, Defendant avoided recognizing at least $20 million in impairment charges and losses – almost two-thirds of its 2016 pre-tax income – by selling and buying used trucks at inflated prices from third parties.

Defendants:
Celadon Group Inc.
Sanction Amount:
$7000000
Announcement Date:
2019-04-25
Violation
Financial Fraud
Key Docs
Official SEC press release
37.7904 -122.392
Prosper Funding LLC

Respondent consented to the Commission's entry of an Order finding that it excluded certain non-performing charged off loans from its reported calculation of annualized net returns, which thereby was overstated. The Order required payment of a $3 million penalty to resolve the matter.

Defendants:
Prosper Funding LLC
Sanction Amount:
$3000000
Announcement Date:
2019-04-19
Violation
Financial Fraud
Key Docs
Official SEC press release
41.8989 -87.6232
Lawrence P. Schmidt, Commercial Equity Partners, Ltd, FutureGen Company (d/b/a FutureGen Capital), FGC Distressed Assets Investment #1, LLC, FutureGen Capital DDA CG Fund LLC, FGC Tax Lien Fund #2, LLC, FGC Trading Fund #1 LLC, FGC SPE NO 1 LLC, FGC SPE N

Combined sanction against Schmidt (who defaulted, because he fled the country) and the entity Defendants. According to the SEC's complaint, Schmidt defrauded investors of millions by creating a web of seemingly legitimate companies that were in fact simply designed to entice investment and conceal his misuse and commingling of funds.

Defendants:
Commercial Equity Partners, Ltd, FutureGen Company (d/b/a FutureGen Capital), FGC Distressed Assets Investment #1, LLC, FutureGen Capital DDA CG Fund LLC, FGC Tax Lien Fund #2, LLC, FGC Trading Fund #1 LLC, FGC SPE NO 1 LLC, FGC SPE NO 2 LLC, FGC CM Note Fund LLC
Lawrence P. Schmidt
Sanction Amount:
37793612.11
Announcement Date:
2019-04-15
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Joseph Meli, 127 Holdings, LLC, Advance Entertainment, LLC, Advance Entertainment II, LLC

Defendants agreed to settle charges that they, along with several others, solicited investments for the bulk purchase and resale of tickets to popular Broadway shows and concerts, but used the majority of the funds raised from investors to make payments to earlier investors and to enrich themselves. Meli previously pled guilty in a parallel criminal case.

Defendants:
127 Holdings, LLC, Advance Entertainment, LLC, Advance Entertainment II, LLC
Joseph Meli
Sanction Amount:
Approximately $58,000,000
Announcement Date:
2019-04-12
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Scott Newsholme

The Defendant, a tax preparer, showed clients fabricated account statements, doctored stock certificates, and forged promissory notes to convince them to let him manage their investments. Instead of investing his clients' money, however, Newsholme cashed their investment checks at a check-cashing store and used the funds on himself and on Ponzi payments, while assuring his clients that their assets were safe and flourishing.

Defendants:
Scott Newsholme
Sanction Amount:
$1567384
Announcement Date:
2019-04-05
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Daniel Mattes

The former CEO of Jumio Inc., a Silicon Valley startup/private mobile payments company, agreed to settle charges of defrauding investors by grossly overstating revenues and then selling privately held shares in the secondary market.

Defendants:
Daniel Mattes
Sanction Amount:
Approximately $17,000,000
Announcement Date:
2019-04-02
Violation
Financial Fraud
Key Docs
Official SEC press release
40.8112 -73.5672
Robert P. DePalo, Joshua B. Gladtke, Gregg A. Lerman, Pangaea Trading Partners LLC, Arjent LLC, Arjent Limited, Excalibur Asset Management LLC

Sanction against Defendant DePalo who previously was found guilty in a parallel criminal case. He defrauded over twenty investors who purchased units in Pangaea Trading Partners LLC, a holding company that held itself out as holding indirect interests in a pair of broker-dealer entities controlled by DePalo, i.e., Arjent LLC and Arjent Ltd. He misrepresented the value of their investments and misappropriated their funds for personal use. The SEC also found that he made false statements to its examiners in an attempt to conceal the fraud.

Defendants:
Pangaea Trading Partners LLC, Arjent LLC, Arjent Limited, Excalibur Asset Management LLC
Robert P. DePalo, Joshua B. Gladtke, Gregg A. Lerman
Sanction Amount:
$6500000
Announcement Date:
2019-04-02
Violation
Offering Fraud
Key Docs
Official SEC press release
50.215 8.62454
Fresenius Medical Care AG & Co KGaA

The Commission found that Respondent committed FCPA violations through misconduct in Saudi Arabia, Morocco, Angola, Turkey, Spain, China, Serbia, Bosnia, Mexico, and eight countries in the West African region. Improper payments/bribes were made through a variety of schemes, to boost sales of the company's products and services for individuals with chronic kidney failure.

Defendants:
Fresenius Medical Care AG & Co KGaA
Sanction Amount:
$147000000
Announcement Date:
2019-03-29
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
47.679 -122.135
Dennis Gibb, Sweetwater Investments, Inc.

The SEC found that Respondents, an investment adviser and its owner (who also pleaded guilty in a parallel criminal case), stole more than $3 million from a private fund they managed to pay personal and business expenses. The theft was concealed using fraudulent account statements and tax documents.

Defendants:
Sweetwater Investments, Inc.
Dennis Gibb
Sanction Amount:
1164747.4
Announcement Date:
2019-03-28
Violation
Financial Fraud
Key Docs
Official SEC press release
25.8169 -80.1891
Phillip Frost, OPKO Health, Inc., Frost Gamma Investments Trust, Mark Groussman, Melechdavid Inc., Alpha Capital Anstalt

Partial settlement of enforcement action brought against these Defendants and others. The settling Defendants allegedly failed to disclose that they were members of an investor group with respect to their investments in certain public companies and, in so doing, misled investors, and/or violated registration provisions of the federal securities laws in connection with their sales of securities in a penny stock issuer.

Defendants:
OPKO Health, Inc., Frost Gamma Investments Trust, Melechdavid Inc., Alpha Capital Anstalt
Phillip Frost, Mark Groussman
Sanction Amount:
Approximately $7,800,000
Announcement Date:
2019-03-22
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7127 -74.0153
Merrill Lynch, Pierce, Fenner & Smith Incorporated

The Commission found that Respondent improperly borrowed pre-released ADRs from other brokers when it should have known that those brokers – middlemen who obtained pre-released ADRs from depositaries – did not own the foreign shares needed to support them. This led to inappropriate short selling and dividend arbitrage.

Defendants:
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Sanction Amount:
8064476.4
Announcement Date:
2019-03-22
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Carol Ann Pedersen

Settlement of charges of stealing millions of dollars from investors to perpetrate a Ponzi scheme. Pedersen allegedly falsely promised prospective investors that she would place their money in "federally guaranteed" securities or the C.A. Pedersen Client Investment Pool, a limited partnership managed by Pedersen that she claimed owned a large and diverse stock portfolio. However, according to the complaint, Pedersen used the funds to make Ponzi-style payments and to pay for personal expenses.

Defendants:
Carol Ann Pedersen
Sanction Amount:
Approximately $2,700,000
Announcement Date:
2019-03-20
Violation
Offering Fraud
Key Docs
Official SEC press release
37.413 -76.8122
Lumber Liquidators Holdings Inc.

Respondent was charged with making false public statements in response to media allegations that it was selling laminate flooring containing levels of formaldehyde that exceeded regulatory standards.

Defendants:
Lumber Liquidators Holdings Inc.
Sanction Amount:
$6097398
Announcement Date:
2019-03-12
Violation
Financial Fraud
Key Docs
Official SEC press release
40.8165 -96.6404
Ameritas Investment Corp.

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
Ameritas Investment Corp.
Sanction Amount:
$3389174
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7605 -73.9789
AXA Advisors, LLC

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
AXA Advisors, LLC
Sanction Amount:
$1134152
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
38.6507 -90.3419
Benjamin F. Edwards & Co. Inc.

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
Benjamin F. Edwards & Co. Inc.
Sanction Amount:
3445264.74
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
41.0479 -91.9331
Cambridge Investment Research Advisors Inc.

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
Cambridge Investment Research Advisors Inc.
Sanction Amount:
6187562.54
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
42.3698 -71.2604
Commonwealth Equity Services LLC

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
Commonwealth Equity Services LLC
Sanction Amount:
1637303.45
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7062 -74.0084
Deutsche Bank Securities Inc.

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
Deutsche Bank Securities Inc.
Sanction Amount:
2971462.85
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
37.7921 -122.399
First Republic Investment Management Inc.

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
First Republic Investment Management Inc.
Sanction Amount:
1005194.25
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
30.2437 -97.8457
Kestra Advisory Services LLC

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
Kestra Advisory Services LLC
Sanction Amount:
6196279.35
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
42.3586 -71.055
LPL Financial LLC

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
LPL Financial LLC
Sanction Amount:
9333516.27
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
45.5238 -122.683
M Holdings Securities Inc.

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
M Holdings Securities Inc.
Sanction Amount:
1022048.49
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
29.7384 -95.5725
Next Financial Group Inc.

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
Next Financial Group Inc.
Sanction Amount:
1405349.89
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7041 -74.0111
Oppenheimer & Co. Inc., Oppenheimer Asset Management Inc.

Settled charges that Respondents failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondents self-reported the potential violations.

Defendants:
Oppenheimer & Co. Inc., Oppenheimer Asset Management Inc.
Sanction Amount:
$3528377
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
34.3859 -119.493
PlanMember Securities Corporation

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
PlanMember Securities Corporation
Sanction Amount:
3550660.48
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
41.5892 -93.6291
Principal Securities Inc.

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
Principal Securities Inc.
Sanction Amount:
1764624.26
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
33.4757 -86.7692
ProEquities Inc.

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
ProEquities Inc.
Sanction Amount:
1852383.1
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
27.8926 -82.6703
Raymond James Financial Services Advisors Inc.

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
Raymond James Financial Services Advisors Inc.
Sanction Amount:
6877048.11
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
RBC Capital Markets LLC

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
RBC Capital Markets LLC
Sanction Amount:
11715395.72
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
43.0383 -87.9019
Robert W. Baird & Co. Incorporated

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
Robert W. Baird & Co. Incorporated
Sanction Amount:
4159167.44
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
35.9219 -84.1328
SSN Advisory Inc.

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
SSN Advisory Inc.
Sanction Amount:
1666950.18
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
34.7479 -92.2723
Stephens Inc.

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
Stephens Inc.
Sanction Amount:
5489119.34
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
38.6297 -90.1889
Stifel, Nicolaus & Company Incorporated

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
Stifel, Nicolaus & Company Incorporated
Sanction Amount:
6037175.98
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
26.3447 -80.0871
Summit Financial Group Inc.

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
Summit Financial Group Inc.
Sanction Amount:
1032702.78
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7531 -73.9732
TIAA-CREF Individual & Institutional Services LLC

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
TIAA-CREF Individual & Institutional Services LLC
Sanction Amount:
2395722.29
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
27.8874 -82.6642
Transamerica Financial Advisors Inc.

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
Transamerica Financial Advisors Inc.
Sanction Amount:
6023072.68
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
38.6318 -90.2164
Wells Fargo Clearing Services, LLC, Wells Fargo Advisors Financial Network LLC

Settled charges that Respondents failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondents self-reported the potential violations.

Defendants:
Wells Fargo Clearing Services, LLC, Wells Fargo Advisors Financial Network LLC
Sanction Amount:
17363847.29
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
44.9501 -92.9471
Woodbury Financial Services Inc.

Settled charges that Respondent failed to adequately disclose conflicts of interest related to the sale of higher-cost mutual fund share classes that charged 12b-1 fees, when a lower-cost share class was available. The Respondent self-reported the potential violations.

Defendants:
Woodbury Financial Services Inc.
Sanction Amount:
1171028.31
Announcement Date:
2019-03-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
54.1661 45.1504
Mobile TeleSystems PJSC

Settlement of alleged violations of the FCPA based on bribery to win telecommunications business in Uzbekistan.

Defendants:
Mobile TeleSystems PJSC
Sanction Amount:
$100000000
Announcement Date:
2019-03-06
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
37.6046 -77.5459
BB&T Securities, LLC

Settled charges that a firm acquired by the Respondent misled its advisory clients into believing they were receiving full service brokerage services in-house at a discount even though significantly less expensive options were available externally.

Defendants:
BB&T Securities, LLC
Sanction Amount:
$5709753
Announcement Date:
2019-03-05
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
John Gregory Schmidt

Defendant, formerly a registered representative of a nationwide broker-dealer and investment adviser, agreed to settle charges that he sold securities belonging to at least seven, mostly elderly, retail brokerage customers and secretly transferred over $1 million in proceeds to at least ten other customers to cover shortfalls in those customers' accounts.

Defendants:
John Gregory Schmidt
Sanction Amount:
$1134964
Announcement Date:
2019-03-01
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Walter C. Little, Andrew M. Berke

Little, a law firm partner, accessed confidential documents on his firm's internal computer network related to at least 11 impending, market-moving announcements involving law firm clients, none of which he personally advised or billed for services. He then traded ahead of the announcements and often tipped his neighbor, Berke.

Defendants:
Walter C. Little, Andrew M. Berke
Sanction Amount:
$1008267
Announcement Date:
2019-02-22
Violation
Trading and Pricing
Key Docs
Official SEC press release
36.0561 -115.107
Inteligentry, Ltd., PlasmERG, Inc., PTP Licensing, Ltd., John P. Rohner

Sanction pursuant to final judgment against Rohner, confirmed on appeal, in case alleging that he and three of his companies operated a fraudulent scheme in which investors were falsely told that the companies had developed, tested, and patented an operational "plasma engine" which would replace the internal combustion engine, and that the funds would be used to bring it to market. Instead, a significant portion of funds were misappropriated/diverted to pay Rohner's personal expenditures.

Defendants:
Inteligentry, Ltd., PlasmERG, Inc., PTP Licensing, Ltd.
John P. Rohner
Sanction Amount:
$2983925
Announcement Date:
2019-02-15
Violation
Offering Fraud
Key Docs
Official SEC press release
40.8733 -74.006
Cognizant Technology Solutions Corporation, Gordon Coburn, Steven E. Schwartz

Partial settlement (by the entity Respondent) of charges of bribery, including a $2 million bribe demanded by a senior government official of the Indian state of Tamil Nadu from a construction firm building Respondent’s 2.7 million square foot campus in Chennai, India. Coburn and Schwartz were Respondent's President and Chief Legal Officer and allegedly authorized the bribe.

Defendants:
Cognizant Technology Solutions Corporation
Gordon Coburn, Steven E. Schwartz
Sanction Amount:
$25000000
Announcement Date:
2019-02-15
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
43.0626 141.32
Deloitte Touche Tohmatsu LLC, Futomichi Amano, Yuji Itagaki

Deloitte Japan, its former CEO Amano and it former reputation and risk leader and director of independence agreed to settle charges that of issuing audit reports for an audit client at a time when dozens of the auditor's employees maintained bank accounts with the client’s subsidiary, including balances that exceeded depositary insurance limits in violation of the SEC audit independence rules.

Defendants:
Deloitte Touche Tohmatsu LLC
Futomichi Amano, Yuji Itagaki
Sanction Amount:
$2000000
Announcement Date:
2019-02-13
Violation
Financial Fraud
Key Docs
Official SEC press release
51.5306 -0.0935454
Jason McDiarmid, Kenneth George, Cedric Telford, Stop Sleep Go, Inc.

The Commission charged a foreign-based microcap company (i.e., the entity Defendant, then known as Interactive Multi-Media Auction Corp.) and its two undisclosed promoters with running a pump-and-dump scheme. The promoters allegedly touted the stock of IMMA with various lies while they dumped their shares, selling them through nominees. Defendant Telford settled and judgment was entered on default as to the other two Defendants.

Defendants:
Stop Sleep Go, Inc.
Jason McDiarmid, Kenneth George, Cedric Telford
Sanction Amount:
$10376941
Announcement Date:
2019-02-12
Violation
Market Manipulation
Key Docs
Official SEC press release
32.7301 -117.225
Jonny Ngo,Donato “Mick” Baca, Jr., NL Technology, LLC

Partial settlement (Baca) in SEC enforcement action alleging that Defendants raised more than $61 million from over 350 investors by falsely promising that the money would be used to fund NL Technology's wholesale technology import business. Instead, the money allegedly was used to pay prior investors and for lavish personal expenses.

Defendants:
NL Technology, LLC
Jonny Ngo,Donato “Mick” Baca, Jr.
Sanction Amount:
$5916647
Announcement Date:
2019-02-11
Violation
Offering Fraud
Key Docs
Official SEC press release
26.4193 -81.8096
Hertz Global Holdings Inc., The Hertz Corp.

Respondents restated financial results because of alleged accounting errors made in a number of business units over multiple reporting periods, including several instances of changed methodologies that always had a favorable impact. They agreed to settle the charges that this conduct violated antifraud and other securities law.

Defendants:
Hertz Global Holdings Inc., The Hertz Corp.
Sanction Amount:
$16000000
Announcement Date:
2019-02-01
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Daniel H. Glick, Financial Management Strategies Inc.

Case based on the fraud of Defendants, a purported investment adviser and his unregistered investment advisory firm, in misappropriating millions from elderly investors using false account statements, etc. The adviser was criminally convicted. This qualifying sanction was recovered from a relief Defendant.

Defendants:
Financial Management Strategies Inc.
Daniel H. Glick
Sanction Amount:
$1044270
Announcement Date:
2019-01-29
Violation
Financial Fraud
Key Docs
Official SEC press release
34.1503 -118.443
Robert H. Shapiro, Woodbridge Group of Companies LLC , et al.

Sanction resulting from consent judgments entered against California-based Woodbridge Group of Companies LLC, its former owner, and its 281 related companies. The amount comprises penalties and disgorgement for operating a massive Ponzi scheme that targeted retail investors.

Defendants:
Woodbridge Group of Companies LLC , et al.
Robert H. Shapiro
Sanction Amount:
$1012600000
Announcement Date:
2019-01-28
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Centrais Elétricas Brasileiras S.A. (a/k/a Electrobras)

According to the SEC's order, former officers at an Eletrobras subsidiary engaged in an long-running illicit bid-rigging and bribery scheme among certain private Brazilian construction companies involving the construction of a nuclear power plant. Respondent agreed to settle charges that internal control weaknesses directly contributed to the bribery scheme.

Defendants:
Centrais Elétricas Brasileiras S.A. (a/k/a Electrobras)
Sanction Amount:
$2500000
Announcement Date:
2018-12-26
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
37.4175 -121.978
Polycom, Inc.

The Commission charged under the FCPA that Respondent's Chinese subsidiary facilitated improper payments using local distributors and resellers, by providing them with product discounts that they would use (some of the savings from) to make cash payments to government officials who had influence over purchasing decisions.

Defendants:
Polycom, Inc.
Sanction Amount:
$16306336
Announcement Date:
2018-12-26
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
40.8726 -73.6214
Warren D. Nadel, Warren D. Nadel & Co., Registered Investment Advisers, LLC

This sanction was awarded after the Commission won its motion for partial summary judgment against Defendant Nadel and a broker-dealer (WDNC) and an investment adviser (RIA LLC) that he controlled, in a case alleging, inter alia, that Nadel fraudulently induced clients of RIA LLC to invest in a purported liquid, cash management investment program. Under the program, preferred utility securities were to be bought in the open market and held short-term in order to generate either dividend income or capital appreciation. Instead, Nadel allegedly simply executed cross trades with the securities at made-up prices.

Defendants:
Warren D. Nadel & Co., Registered Investment Advisers, LLC
Warren D. Nadel
Sanction Amount:
13070389.19
Announcement Date:
2018-12-26
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7559 -73.9756
JPMorgan Chase Bank N.A.

The Commission found that Respondent improperly provided American Depositary Receipts (ADRs) to brokers in thousands of pre-release transactions when neither the brokers nor their customers had the foreign shares needed to support them, leading to inappropriate short selling and dividend arbitrage.

Defendants:
JPMorgan Chase Bank N.A.
Sanction Amount:
$135100000
Announcement Date:
2018-12-26
Violation
Trading and Pricing
Key Docs
Official SEC press release
36.0336 -86.7975
Thoroughbred Financial Services, LLC, Thomas Jenkins Parker, Lawrence Randall “Randy” Hartley

Administrative Order/proceeding finding that Respondents committed breaches of fiduciary duty and made inadequate disclosures in connection with their mutual fund share class selection practices (unnecessarily/improperly selecting share classes that charged 12b-1 fees), along with misleading statements and omissions upon revising their practices after a Commission examination.

Defendants:
Thoroughbred Financial Services, LLC
Thomas Jenkins Parker, Lawrence Randall “Randy” Hartley
Sanction Amount:
1679241.88
Announcement Date:
2018-12-21
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7819 -73.0954
American Portfolios Advisers Inc., PPS Advisors Inc., Lawrence Nicholas Passaretti

Two New York-based investment advisers and the CEO/Chief Investment Officer of one of them (PPS) settled charges that they selected mutual fund share classes inconsistent with disclosures to clients, including instances in which they had conflicts of interest.

Defendants:
American Portfolios Advisers Inc., PPS Advisors Inc.
Lawrence Nicholas Passaretti
Sanction Amount:
$1852099
Announcement Date:
2018-12-21
Violation
Trading and Pricing
Key Docs
Official SEC press release
41.8863 -87.6351
Crowe LLP, Joseph C. Macina, Kevin V. Wydra

Settled charges against national audit firm Crowe LLP and two of its partners, based on an audit of client Corporate Resource Services that was found to have numerous deficiencies, including a lack of auditor independence.

Defendants:
Crowe LLP
Joseph C. Macina, Kevin V. Wydra
Sanction Amount:
$1540000
Announcement Date:
2018-12-21
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Andrew F. Nicoletta, Bella Industries LLC, Cranberry Rock Investments, Inc., J.J. Newport Group, Inc.

Settlement of Commission's findings that Respondent Nicoletta, via the entity Respondents, committed numerous violations of Rule 105 of Regulation M under the Exchange Act. I.e., they purchased equity securities in covered offerings despite having sold short the same securities during the Rule’s defined restricted period.

Defendants:
Bella Industries LLC, Cranberry Rock Investments, Inc., J.J. Newport Group, Inc.
Andrew F. Nicoletta
Sanction Amount:
$1092567
Announcement Date:
2018-12-19
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Robert S. “Lute” Davis, Jr., Donald Anthony Mackenzie, Jordan E. Goodman, Aaron R. Andrew, Jeffrey L. Wendel, Alan H. New, David N. Knuth, Randy T. Rondberg, Richard Fritts, Marcus Bradford Bray, Gregory W. Anderson, Claude Steven Mosley, Gregory A. Koch,

Partial settlement of charges against 13 individuals and their 10 companies for unlawfully selling securities of Woodbridge Group of Companies LLC to retail investors. These individuals were among Woodbridge’s top revenue producers. The settlement resulting in this sanction was with Goodman, who neither admitted nor denied the charges.

Defendants:
Old Security Financial Group Inc., Paramount Financial Services Inc. d/b/a Live Abundant, Wendel Financial Network LLC, Synergy Investment Services LLC, Trager LLC, Fritts Financial LLC, Bradford Solutions LLC, Balanced Financial Inc., Security Financial LLC, Koch Insurance Brokers LLC
Robert S. “Lute” Davis, Jr., Donald Anthony Mackenzie, Jordan E. Goodman, Aaron R. Andrew, Jeffrey L. Wendel, Alan H. New, David N. Knuth, Randy T. Rondberg, Richard Fritts, Marcus Bradford Bray, Gregory W. Anderson, Claude Steven Mosley, Gregory A. Koch
Sanction Amount:
$2705850
Announcement Date:
2018-12-19
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Barry M. Kornfeld, Ferne Kornfeld, FEK Enterprises, Inc., d/b/a First Financial Tax Group, Andrew G. Costa, Insurance Services, Corp., Albert D. Klager, Atlantic Insurance and Financial Services, Inc.

Partial settlement of charges against Florida-based sales agents for unlawfully selling securities of Woodbridge Group of Companies LLC (the instrumentality of a massive Ponzi scheme) to retail investors.

Defendants:
FEK Enterprises, Inc., d/b/a First Financial Tax Group, Insurance Services, Corp., Atlantic Insurance and Financial Services, Inc.
Barry M. Kornfeld, Ferne Kornfeld, Andrew G. Costa, Albert D. Klager
Sanction Amount:
$6769405
Announcement Date:
2018-12-19
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7611 -73.9802
UBS Financial Services Inc.

Settlement of allegations that Respondent failed to file a number of Suspicious Activity Reports (SARs), and did not properly review suspicious transactions flagged by its internal monitoring systems.

Defendants:
UBS Financial Services Inc.
Sanction Amount:
$5000000
Announcement Date:
2018-12-17
Violation
Financial Fraud
Key Docs
Official SEC press release
32.7819 -96.7982
Santander Consumer USA Holdings Inc.

The Respondent, a publicly-traded issuer of subprime automobile loan securitizations, settled charges that it used faulty accounting on troubled loans. Such loans allegedly were improperly grouped with other loans with different characteristics, and Respondent had to restate its financials twice as a result.

Defendants:
Santander Consumer USA Holdings Inc.
Sanction Amount:
$1500000
Announcement Date:
2018-12-17
Violation
Financial Fraud
Key Docs
Official SEC press release
32.7833 -96.7973
NB Alternatives Advisers LLC

The Commission found that Respondent, an investment adviser, improperly allocated approximately $2 million to three private equity funds - the Dyal Funds - that it advised. The misallocated money was paid as compensation to employees who performed work that was unrelated to the Dyal Funds.

Defendants:
NB Alternatives Advisers LLC
Sanction Amount:
$2733608
Announcement Date:
2018-12-17
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7121 -74.0152
The Bank of New York Mellon

The Commission found that Respondent improperly provided American Depositary Receipts (ADRs) to brokers in thousands of pre-release transactions when neither the brokers nor their customers had the foreign shares needed to support them, leading to inappropriate short selling and dividend arbitrage.

Defendants:
The Bank of New York Mellon
Sanction Amount:
54187554.82
Announcement Date:
2018-12-17
Violation
Trading and Pricing
Key Docs
Official SEC press release
34.0904 -118.391
Yucaipa Master Manager, LLC

Respondent RIA agreed to settle the Commission's charges that it failed to disclose several financial conflicts of interests and misallocated fees and expenses, including those of Respondent's principal for personal investments.

Defendants:
Yucaipa Master Manager, LLC
Sanction Amount:
$2934312
Announcement Date:
2018-12-13
Violation
Financial Fraud
Key Docs
Official SEC press release
29.5799 -95.3943
America Modern Green Senior (Houston) LLC, America Modern Green Community (Houston) LLC, America Modern Green Residential (Houston) LLC

Settlement with three Houston-area developers that allegedly misused funds raised from 90 Chinese investors under the EB-5 Program.

Defendants:
America Modern Green Senior (Houston) LLC, America Modern Green Community (Houston) LLC, America Modern Green Residential (Houston) LLC
Sanction Amount:
$51444135
Announcement Date:
2018-12-12
Violation
Offering Fraud
Key Docs
Official SEC press release
32.7822 -96.7976
AriseBank, Jared Rice Sr., Stanley Ford

Former CEO and COO of Arisebank allegedly were behind a fraudulent initial coin (cryptocurrency) offering that was stopped by the Commission. They agreed to settle the resulting charges.

Defendants:
AriseBank
Jared Rice Sr., Stanley Ford
Sanction Amount:
$2697500
Announcement Date:
2018-12-12
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7585 -73.9702
Citadel Securities LLC

Settlement of charges that Respondent broker-dealer provided the SEC with incomplete and deficient securities trading information known as “blue sheet data.”

Defendants:
Citadel Securities LLC
Sanction Amount:
$3500000
Announcement Date:
2018-12-10
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7594 -73.9822
MUFG Securities Americas Inc.

Settlement of charges that Respondent broker-dealer provided the SEC with incomplete and deficient securities trading information known as “blue sheet data.”

Defendants:
MUFG Securities Americas Inc.
Sanction Amount:
$1400000
Announcement Date:
2018-12-10
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7601 -73.9818
Natixis Securities Americas LLC

Settlement of charges that Respondent broker-dealer provided the SEC with incomplete and deficient securities trading information known as “blue sheet data.”

Defendants:
Natixis Securities Americas LLC
Sanction Amount:
$1250000
Announcement Date:
2018-12-10
Violation
Trading and Pricing
Key Docs
Official SEC press release
22.3031 114.175
Agria Corporation

Respondent, a multinational agricultural company, agreed to settle charges that it concealed through fraudulent accounting substantial losses incurred in connection with its divestiture of its primary operating entity.

Defendants:
Agria Corporation
Sanction Amount:
$3000000
Announcement Date:
2018-12-10
Violation
Financial Fraud
Key Docs
Official SEC press release
33.9805 -118.139
Edward Chen, Jean Chen, Home Paradise Investment Center LLC, GH Investment LP, GH Design Group LLC, Golden Galaxy LP, Mega Home LLC

Sanction resulting from final judgments on consent against husband and wife, and five entity defendants they controlled, in case alleging misappropriation and misuse of more than $12 million of investors' funds that were supposed to be used on two EB-5 projects. Defendants allegedly purchased unrelated residential real estate and provided investors with fake documentation.

Defendants:
Home Paradise Investment Center LLC, GH Investment LP, GH Design Group LLC, Golden Galaxy LP, Mega Home LLC
Edward Chen, Jean Chen
Sanction Amount:
$27983098
Announcement Date:
2018-12-06
Violation
Offering Fraud
Key Docs
Official SEC press release
41.0134 -73.6556
Fifth Street Management LLC

Respondent agreed to settle charges that it: (1) misallocated certain expenses such as its rent to its business development company clients; and (2) failed to reasonably conduct quality control reviews of its business development company clients' quarterly valuation models, causing one client to materially overstate its net income.

Defendants:
Fifth Street Management LLC
Sanction Amount:
$3983660
Announcement Date:
2018-12-03
Violation
Financial Fraud
Key Docs
Official SEC press release
34.0785 -118.119
Steve Qi, Law Offices of Steve Qi & Associates

Following mediation, Defendants consented to final judgment in SEC's enforcement action charging that they had acted as unregistered brokers in connection with sales of EB-5 investments and defrauded their investor clients by not fully disclosing their receipt of transaction-based compensation.

Defendants:
Law Offices of Steve Qi & Associates
Steve Qi
Sanction Amount:
$1658083
Announcement Date:
2018-11-20
Violation
Offering Fraud
Key Docs
Official SEC press release
32.7925 -96.8196
Home Solutions of America, Inc., Frank J. Fradella, Jeffrey M. Mattich

Settlement with former CEO and CFO of a Dallas and New Orleans-based disaster remediation and construction business who, along with some other business associates, were charged with fraud for lying about non-existent business deals in the 2005-2008 time period and inflating the company's revenues and stock price.

Defendants:
Home Solutions of America, Inc.
Frank J. Fradella, Jeffrey M. Mattich
Sanction Amount:
$1136620
Announcement Date:
2018-11-20
Violation
Financial Fraud
Key Docs
Official SEC press release
29.7534 -95.4572
Vantage Drilling International

Respondent's director and a marketing agent were charged in Brazil as part of "Operation Carwash" for paying bribes to officials at Petrobras. Respondent was charged here with failures to devise/implement internal accounting controls, particularly with respect to the use of third-party marketing agents. It agreed to settle.

Defendants:
Vantage Drilling International
Sanction Amount:
$5000000
Announcement Date:
2018-11-19
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
0 0
James V. Mazzo

Mazzo, the former Chairman and Chief Executive Officer of Advanced Medical Optics, Inc., settled charges that he tipped his close personal friend, former professional baseball player Douglas V. DeCinces, about his company's acquisition by Abbott Laboratories, Inc.

Defendants:
James V. Mazzo
Sanction Amount:
$1500000
Announcement Date:
2018-11-13
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.677 -73.5039
Eric P. Lesak, Global Research, LLC (PA), Global Research, LLC (NY)

Final judgment entered in case alleging that Defendants, through cold calling, sold more than $2.8 million shares in penny stock company Axiom Holdings Inc. to more than 100 investors, but didn't tell any of them that Lesak had previously pled guilty to securities and wire fraud and been industry-barred. Defendants also didn't tell prospective investors that they were being paid thousands of dollars each month to promote Axiom.

Defendants:
Global Research, LLC (PA), Global Research, LLC (NY)
Eric P. Lesak
Sanction Amount:
$1922357
Announcement Date:
2018-11-08
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7096 -74.0105
ITG Inc., AlterNet Securities Inc.

Affiliated broker-dealer Respondents were charged with misstatements and omissions about the operation of dark pool, "POSIT." The Commission found that subscriber trading information was disclosed to other traders, despite assurances it would be kept confidential.

Defendants:
ITG Inc., AlterNet Securities Inc.
Sanction Amount:
$12000000
Announcement Date:
2018-11-07
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7207 -74.0112
Citibank N.A.

The Commission found that Respondent improperly provided American Depositary Receipts (ADRs) to brokers in thousands of pre-release transactions when neither the brokers nor their customers had the foreign shares needed to support them, leading to inappropriate short selling and dividend arbitrage.

Defendants:
Citibank N.A.
Sanction Amount:
$38700000
Announcement Date:
2018-11-07
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Charles A. Banks, IV

Defendant, who previously pled guilty in a parallel criminal case, consented to entry of a final judgment based on allegations that he fraudulently induced a former professional athlete to invest $7.5 million in a sports team apparel and merchandise company based on a series of misrepresentations about the investment and misappropriated the funds.

Defendants:
Charles A. Banks, IV
Sanction Amount:
$6328155
Announcement Date:
2018-11-02
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Douglas P. Simanski

Former registered representative and investment adviser in Altoona, Pennsylvania operated a long-running offering fraud. He told clients their money would be invested in a "tax free" fixed rate investment, a rental car company, or one of two coal mining companies in which he claimed to have an ownership interest, but largely used the money to repay other investors and for personal use.

Defendants:
Douglas P. Simanski
Sanction Amount:
1142356.46
Announcement Date:
2018-11-02
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Emilio Francisco

The Commission found that the Respondent, as a Defendant in a civil enforcement proceeding, settled charges of perpetrating EB-5 fraud on numerous investors.

Defendants:
Emilio Francisco
Sanction Amount:
2313197.35
Announcement Date:
2018-10-24
Violation
Offering Fraud
Key Docs
Official SEC press release
32.7826 -96.7955
Christopher A. Faulkner, Breitling Energy Corporation, Jeremy S. Wagers,Esq., Judson F. “Rick” Hoover, Parker R. Hallam, Joseph Simo, Dustin Michael MillerRodriguez, Beth C. Handkins, Gilbert Steedley, Breitling Oil & Gas Corporation, Crude Energy, LLC, P

Faulkner was the self-proclaimed “Frack Master” who systemically deceived investors across the country by disseminating false and misleading offering materials, misappropriating millions of dollars of investor funds, and manipulating the stock of Breitling Energy Corporation, a publicly traded company he controlled.

Defendants:
Breitling Energy Corporation, Breitling Oil & Gas Corporation, Crude Energy,LLC, Patriot Energy, Inc.
Christopher A. Faulkner, Jeremy S. Wagers,Esq., Judson F. “Rick” Hoover, Parker R. Hallam, Joseph Simo, Dustin Michael MillerRodriguez, Beth C. Handkins, Gilbert Steedley
Sanction Amount:
$25007301
Announcement Date:
2018-10-23
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Dennis Wayne Hamilton

Insider trading by a former executive at Stamford, Conn.-based electronics company Harman International Industries, Inc.

Defendants:
Dennis Wayne Hamilton
Sanction Amount:
$1416471
Announcement Date:
2018-10-10
Violation
Trading and Pricing
Key Docs
Official SEC press release
38.8518 -77.1248
Steve H. Karroum, FX & Beyond Corporation

Upon the SEC's motion, the Court entered a final judgment including this sanction. The case alleged that Defendants defrauded investors out of $1.7 million in a foreign exchange trading program, which was falsely represented as no-risk. Further, Karroum allegedly misappropriated money and hid trading losses.

Defendants:
FX & Beyond Corporation
Steve H. Karroum
Sanction Amount:
$1392656
Announcement Date:
2018-10-09
Violation
Offering Fraud
Key Docs
Official SEC press release
38.8824 -77.1705
Todd Elliott Hitt, Kiddar Capital LLC, Kiddar Group Holdings, Inc.

Hitt, from Arlington VA, orchestrated multiple offering fraud schemes using two companies he owned (i.e., the two entity defendants). Investments were supposed to be in real estate in the Washington, D.C. area, but money was misappropriated and used for Ponzi payments, etc.

Defendants:
Kiddar Capital LLC, Kiddar Group Holdings, Inc.
Todd Elliott Hitt
Sanction Amount:
$20000000
Announcement Date:
2018-10-05
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Iftikar Ahmed

Ahmad, an investment professional formerly at venture capital firm Oak Investment Partners, was charged with fraudulently diverting tens of millions of dollars from the funds he advised. In addition to other relief, the Court ordered the listed sanction consisting of disgorgement, interest, and a ($21 million) civil penalty.

Defendants:
Iftikar Ahmed
Sanction Amount:
$64400000
Announcement Date:
2018-10-03
Violation
Financial Fraud
Key Docs
Official SEC press release
37.3948 -122.15
Tesla Inc., Elon Musk

Settlement of charges arising out of a tweet by Musk, CEO of Tesla, that he could take the company private at $420 per share — a substantial premium to its trading price at the time — and that funding for the transaction had been secured. The Commission alleged that Musk's tweet was misleading/false.

Defendants:
Tesla Inc.
Elon Musk
Sanction Amount:
$40000000
Announcement Date:
2018-09-29
Violation
Market Manipulation
Key Docs
Official SEC press release
32.7301 -117.225
Jonny Ngo, Donato “Mick” Baca, Jr., NL Technology, LLC

Partial settlement (Ngo and NL Technology) in SEC enforcement action alleging that Defendants raised more than $61 million from over 350 investors by falsely promising that the money would be used to fund NL Technology's wholesale technology import business. Instead, the money allegedly was used to pay prior investors and for lavish personal expenses.

Defendants:
NL Technology, LLC
Jonny Ngo, Donato “Mick” Baca, Jr.
Sanction Amount:
$5225726
Announcement Date:
2018-09-28
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7417 -73.9868
Credit Suisse Securities (USA) LLC

Respondent agreed to settle charges of material misrepresentations and omissions concerning handling of customer orders by its Retail Execution Services business, which subsequently was closed.

Defendants:
Credit Suisse Securities (USA) LLC
Sanction Amount:
$5000000
Announcement Date:
2018-09-28
Violation
Trading and Pricing
Key Docs
Official SEC press release
42.2428 -85.5553
Stryker Corp.

The Commission charged Respondent with violating the books and records and internal accounting controls provisions of the FCPA, finding that the company failed to detect the risk of improper payments in sales of its products in India, China, and Kuwait, and that its India subsidiary failed to maintain complete and accurate books and records.

Defendants:
Stryker Corp.
Sanction Amount:
$7800000
Announcement Date:
2018-09-28
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
42.1555 -87.8689
Walgreens Boots Alliance Inc., Gregory Wasson, Wade Miquelon

The Commission reached settlements with the Respondent pharmaceutical conglomerate, its former CEO and its former CFO regarding charges of misleading investors about increased risk that the company would miss a key financial goal announced in connection with the merger of Walgreen Co. and Alliance Boots GmbH in 2012.

Defendants:
Walgreens Boots Alliance Inc.
Gregory Wasson, Wade Miquelon
Sanction Amount:
$34820000
Announcement Date:
2018-09-28
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Adam Derbyshire

The former CFO of North Carolina-based Salix Pharmaceuticals Ltd. agreed to settle charges that he played a direct role in repeatedly misleading analysts and investors about the company's future prospects. The company allegedly was channel-stuffing, but significantly understated the amount of Salix drugs that wholesaler customers held in inventory.

Defendants:
Adam Derbyshire
Sanction Amount:
$1053370
Announcement Date:
2018-09-28
Violation
Financial Fraud
Key Docs
Official SEC press release
37.7893 -122.4
LendingClub Asset Management LLC, Renaud Laplanche, Carrie Dolan

LendingClub and its former president, Laplanche, were charged with fraud for improperly using fund money to benefit LendingClub’s parent company. They, along with Dolan, LendingClub’s former CFO, also were charged with improperly adjusting fund returns. All three agreed to settle the Commission's charges.

Defendants:
LendingClub Asset Management LLC
Renaud Laplanche, Carrie Dolan
Sanction Amount:
$4265000
Announcement Date:
2018-09-28
Violation
Financial Fraud
Key Docs
Official SEC press release
42.355 -71.056
Zachary Harrison, Putnam Investment Management, LLC

The Commission found that Respondents, an investment adviser and one of its former portfolio managers, facilitated dozens of prearranged, illegal cross-trades of RMBS between client advisory accounts in a manner that disadvantaged the selling clients. Trades were executed at the bid price instead of the midpoint between the bid and the ask as required.

Defendants:
Putnam Investment Management, LLC
Zachary Harrison
Sanction Amount:
$2145000
Announcement Date:
2018-09-27
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Justin Blake Barrett, William E. Berry, Berry Mediaworks, Grayson Brookshire, Antonio Giacca, Shmuel Pollen, Travis Stephenson

The Commission brought civil enforcement actions against these defendants - who agreed to settle in the cumulative amount of this sanction - and others, on allegations that they created and disseminated elaborate rags-to-riches internet marketing videos to trick retirees and other retail investors into opening brokerage accounts and trading high-risk securities known as binary options.

Defendants:
Berry Mediaworks
Justin Blake Barrett, William E. Berry, Grayson Brookshire, Antonio Giacca, Shmuel Pollen, Travis Stephenson
Sanction Amount:
$4142500
Announcement Date:
2018-09-27
Violation
Trading and Pricing
Key Docs
Official SEC press release
-22.9098 -43.1793
Petróleo Brasileiro S.A.

Respondent was found to have filed false financial statements, including in a $10 billion stock offering to U.S. investors completed in 2010, that concealed a massive bribery and bid-rigging scheme at the company involving its senior executives and largest contractors and suppliers.

Defendants:
Petróleo Brasileiro S.A.
Sanction Amount:
$1786673797
Announcement Date:
2018-09-27
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
40.7732 -73.4206
Voya Financial Advisors, Inc.

Des Moines-based broker-dealer and investment adviser Voya Financial Advisors Inc. agreed to settle charges relating to failures in cybersecurity policies and procedures surrounding a cyber intrusion.

Defendants:
Voya Financial Advisors, Inc.
Sanction Amount:
$1000000
Announcement Date:
2018-09-26
Violation
Trading and Pricing
Key Docs
Official SEC press release
36.0337 -86.8042
Hope Advisors, LLC, Karen Bruton

Consent judgment against fund manager and its principal, in case alleging that they managed two private hedge funds in which their only compensation was an incentive fee, and engaged in a continuous scheme to inflate their fees by structuring trading so that a (generally illusory) profit would be realized at the end of the month and losses would not be realized until the following month.

Defendants:
Hope Advisors, LLC
Karen Bruton
Sanction Amount:
$1487235
Announcement Date:
2018-09-21
Violation
Trading and Pricing
Key Docs
Official SEC press release
33.9361 -84.3616
Heartland Payment Systems, LLC, Robert O. Carr

Respondents, a card payment processingservices provider for merchants and its former CEO, agreed to settle the Commission's charges that they misled investors by overstating the significance of an operating metric, "New Margin Installed," as a meaningful indicator of future revenue growth.

Defendants:
Heartland Payment Systems, LLC
Robert O. Carr
Sanction Amount:
$2280000
Announcement Date:
2018-09-21
Violation
Financial Fraud
Key Docs
Official SEC press release
41.4432 -90.625
CMB Export, LLC, Patrick F. Hogan, et al.

Illinois-based regional center CMB Export LLC , its CEO, and 37 affiliated limited partnerships agreed to settle charges related to an offering of unregistered securities, ostensibly pursuant to the EB-5 Immigrant Investor Program.

Defendants:
CMB Export, LLC
Patrick F. Hogan
Sanction Amount:
$11585000
Announcement Date:
2018-09-21
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
John Galanis, Jason Galanis, Derek Galanis, Jared Galanis, Gary T. Hirst, Gavin Hamels

Defendants orchestrated a fraudulent scheme to secretly issue $72 million of unrestricted shares in Gerova Financial Group Ltd., a Bermuda-domiciled issuer whose shares once traded on the NYSE, to a friend of the Galanis family in Kosovo, and then bribe investment advisers to purchase the family friend's Gerova stock in client accounts through coordinated trades.

Defendants:
John Galanis, Jason Galanis, Derek Galanis, Jared Galanis, Gary T. Hirst, Gavin Hamels
Sanction Amount:
10704914.92
Announcement Date:
2018-09-21
Violation
Trading and Pricing
Key Docs
Official SEC press release
45.6556 -122.592
Barrett Business Services, Inc., Mark Cannon

Settlement with BBSI of charges of accounting fraud. Also settling was the company’s former controller, for his alleged role in improperly approving certain accounting entries.

Defendants:
Barrett Business Services, Inc.
Mark Cannon
Sanction Amount:
$1700000
Announcement Date:
2018-09-20
Violation
Financial Fraud
Key Docs
Official SEC press release
28.4097 -81.4597
SeaWorld Entertainment Inc. , James Atchison

Respondent SeaWorld and its former CEO agreed to pay more than $5 million to settle fraud charges for misleading investors about the impact the documentary film Blackfish had on the company’s reputation and business. The Commission found that they expressly denied any impact for approximately 9 months, despite declining attendance, and then finally admitted the impact of negative publicity which resulted in a significant drop in the stock price.

Defendants:
SeaWorld Entertainment Inc.
James Atchison
Sanction Amount:
Approximately $5,000,000
Announcement Date:
2018-09-18
Violation
Financial Fraud
Key Docs
Official SEC press release
40.0231 -105.225
Clovis Oncology Inc., Patrick Mahaffy, Erle Mast

Settlement with Respondent biopharmaceutical company, its CEO, and its former CFO of charges of misleading investors about the effectiveness of the company’s developmental lung cancer drug, and about how it compared to another, competing drug.

Defendants:
Clovis Oncology Inc.
Patrick Mahaffy, Erle Mast
Sanction Amount:
$20804145
Announcement Date:
2018-09-18
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Peter Kolokouris, Michael Hughes, Ekaterini Kolokouris, Anastasios Kolokouris, Ioannis Kolokouris, Demitrios Kolokouris, Sophia Kolokouris, Michael Papapanu, Janice Papapanu

Settlement with the listed Defendants for their alleged roles or connection to schemes to manipulate the stock price of Arista Power, Inc., including by material misrepresentations and omissions in certain of its public filings.

Defendants:
Peter Kolokouris, Michael Hughes, Ekaterini Kolokouris, Anastasios Kolokouris, Ioannis Kolokouris, Demitrios Kolokouris, Sophia Kolokouris, Michael Papapanu, Janice Papapanu
Sanction Amount:
$1037326
Announcement Date:
2018-09-14
Violation
Market Manipulation
Key Docs
Official SEC press release
40.1434 -75.176
Capital Analysts, LLC

The Commission found that Respondent, a registered investment adviser, failed to make proper disclosures regarding its mutual fund share class selections, including that it unnecessarily/improperly selected share classes that charged 12b-1 fees, and regarding its receipt of revenue sharing payments from a clearing broker.

Defendants:
Capital Analysts, LLC
Putnam Investment Management, LLC
Sanction Amount:
$2120349
Announcement Date:
2018-09-14
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7207 -74.0112
Citigroup Global Markets Inc., Citi Order Routing and Execution, LLC

Respondents were charged with misleading users of a dark pool called Citi Match, regarding assurances that high-frequency traders were not allowed in. CGMI was responsible for the marketing and sales and CORE was responsible for its day-to-day operation.

Defendants:
Citigroup Global Markets Inc., Citi Order Routing and Execution, LLC
Sanction Amount:
$12937475
Announcement Date:
2018-09-14
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.758 -73.9708
Convergex Execution Solutions LLC n/k/a Cowen Execution Services LLC

Settlement of charges that Respondent broker-dealer provided the SEC with incomplete and deficient securities trading information known as “blue sheet data.”

Defendants:
Cowen Execution Services LLC
Sanction Amount:
$2750000
Announcement Date:
2018-09-13
Violation
Trading and Pricing
Key Docs
Official SEC press release
41.7084 -72.8032
United Technologies Corporation

The SEC found that Respondent, via subsidiaries and a joint venture, made unlawful payments and provided trips and gifts to officials in multiple countries including China, Azerbaijan, Kuwait, South Korea, Pakistan, Thailand, and Indonesia in order to obtain business.

Defendants:
United Technologies Corporation
Sanction Amount:
$13986534
Announcement Date:
2018-09-12
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
40.7536 -73.9748
Blue Alternative Asset Management, L.L.C., Blue Capital Management, Inc., Mark Graham

Respondent investment advisers agreed to settle the Commission's findings that they engaged in a fraudulent scheme to conceal declining asset values in various client accounts, by making false statements and improperly redeeming investments from private funds they controlled.

Defendants:
Blue Alternative Asset Management, L.L.C., Blue Capital Management, Inc.
Mark Graham
Sanction Amount:
$2527547
Announcement Date:
2018-09-06
Violation
Financial Fraud
Key Docs
Official SEC press release
48.8736 2.31291
Sanofi

Respondent was charged with perpetrating schemes via its Kazakhstan and Middle East subsidiaries that involved bribe payments to government procurement officials and healthcare providers in order to be awarded tenders and to increase prescriptions of its products.

Defendants:
Sanofi
Sanction Amount:
$25200000
Announcement Date:
2018-09-04
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
40.8772 -74.4535
Tangoe, Inc., Donald J. Farias, Albert R. Subbloie, Gary R. Martino, Thomas H. Beach

Partial settlement (Tangoe, Subbloie, Martino, and Beach) of enforcement action brought by the Commission alleging the use of fraudulent accounting practices that artificially boosted Tangoe's revenues between 2013 and 2015.

Defendants:
Tangoe, Inc.
Donald J. Farias, Albert R. Subbloie, Gary R. Martino, Thomas H. Beach
Sanction Amount:
$1670000
Announcement Date:
2018-09-04
Violation
Financial Fraud
Key Docs
Official SEC press release
42.3461 -71.0815
Massachusetts Financial Services Company

Respondent investment adviser agreed to settle the Commission's findings of material misstatements and omissions concerning hypothetical stock returns from a blended fundamental and quantitative stock rating model, because some of the quant ratings were determined retroactively.

Defendants:
Massachusetts Financial Services Company
Sanction Amount:
$1900000
Announcement Date:
2018-08-31
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7134 -74.0119
Moody’s Investors Service, Inc.

Moody’s agreed to settle charges that it failed to establish and document an effective internal control structure as to RMBS rating models that it had outsourced from a corporate affiliate, and that it failed to maintain and enforce existing internal controls that should have been applied to the models. Ratings were found in error due to flaws in the models, and ratings that deviated materially from model-implied ratings were not documented.

Defendants:
Moody’s Investors Service, Inc.
Sanction Amount:
$15000000
Announcement Date:
2018-08-28
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7134 -74.0119
Moody’s Investors Service, Inc.

The Commission found that, for 26 ratings of securities known as “combo notes” with a total notional value of about $2 billion, Moody’s assigned ratings in a manner that was inconsistent with other types of securities that used the same rating symbols.

Defendants:
Moody’s Investors Service, Inc.
Sanction Amount:
$1250000
Announcement Date:
2018-08-28
Violation
Trading and Pricing
Key Docs
Official SEC press release
42.0237 -91.7045
AEGON USA Investment Management, LLC, Transamerica Asset Management, Inc., Transamerica Capital, Inc., Transamerica Financial Advisors, Inc.

Respondent AUIM is an investment advisor and the Commission found that it developed/utilized faulty models, pursuant to which billions of dollars had been invested. Respondents TAM and TFA are also investment advisors and are/were affiliated with AUIM, and Transamerica Capital is an affiliated broker-dealer. They were charged based on their involvement and the problems with AUIM's models. TFA also allegedly sold fraudulent strategies managed by F-Squared Investments, Inc.

Defendants:
AEGON USA Investment Management, LLC, Transamerica Asset Management, Inc., Transamerica Capital, Inc., Transamerica Financial Advisors, Inc.
Sanction Amount:
$97602040
Announcement Date:
2018-08-27
Violation
Trading and Pricing
Key Docs
Official SEC press release
39.2826 -76.6016
Legg Mason Inc.

Settled charge that Respondent violated the FCPA in a scheme to bribe Libyan government officials. Specifically, the Commission found that Respondent's former subsidiary had partnered with a French financial services company to solicit investment business from Libyan state-owned financial institutions, and thereby paid bribes to secure investments generating approximately $31.6 million of net revenue.

Defendants:
Legg Mason Inc.
Sanction Amount:
$34502494
Announcement Date:
2018-08-27
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
0 0
Gary S. Williky

Sanction pursuant to a final judgment/remedies motion brought by the Commission, in case alleging that Defendant perpetuated an illegal market manipulation and insider trading scheme involving Indiana-based company Imperial Petroleum, Inc.

Defendants:
Gary S. Williky
Sanction Amount:
$2784245
Announcement Date:
2018-08-23
Violation
Market Manipulation
Key Docs
Official SEC press release
33.533 -111.924
Intertech Solutions, Inc., William Scott Marshall, David Michael Naylor

Defendants, including a purported project finance and management company for mining operations, agreed to settle charges that they raised over $7 million from hundreds of investors by misleading them about the value of Intertech’s gold mine interest, Intertech’s timeframe for generating revenue, and commission payments Intertech made to securities solicitors. Hundreds of thousands of dollars in investor funds were allegedly misappropriated and used to pay for personal expenses.

Defendants:
Intertech Solutions, Inc.
William Scott Marshall, David Michael Naylor
Sanction Amount:
Approximately $7,700,000
Announcement Date:
2018-08-21
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Hari Ravichandran, Waruna Ellawala

Two former top officers of Endurance International Group Holdings Inc., an online marketing company, agreed to settle charges of overstating the company’s subscriber base in public disclosures.

Defendants:
Hari Ravichandran, Waruna Ellawala
Sanction Amount:
$1414000
Announcement Date:
2018-08-21
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Medient Studios, Inc. a/k/a Moon River Studios, Inc.

Defendant was a microcap issuer and former movie studio that allegedly was the instrumentality of its founder and CEO in a fraudulent offering, who employed false and misleading statements in press releases and corporate filings, etc.

Defendants:
Medient Studios, Inc. a/k/a Moon River Studios, Inc.
Sanction Amount:
$1824368
Announcement Date:
2018-08-20
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7127 -74.0153
Merrill Lynch, Pierce, Fenner & Smith Incorporated

Merrill Lynch settled charges that it failed to disclose a conflict of interest arising out of its own business interests in deciding whether to continue to offer clients products managed by an outside third-party advisory firm.

Defendants:
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Sanction Amount:
8872724.81
Announcement Date:
2018-08-20
Violation
Offering Fraud
Key Docs
Official SEC press release
28.916 -81.9799
Lynette M. Robbins, Knowles Systems, Inc.

Settlement of charges against Florida-based sales agent and her company for unlawfully selling securities of Woodbridge Group of Companies LLC (the instrumentality of a massive Ponzi scheme) to retail investors.

Defendants:
Knowles Systems, Inc.
Lynette M. Robbins
Sanction Amount:
Approximately $1,100,000
Announcement Date:
2018-08-20
Violation
Trading and Pricing
Key Docs
Official SEC press release
26.3416 -80.1275
Core Performance Management, LLC, James P. Scherr, Deborah B. Dora, Sharlene F. Mesite, James O’Neil, Anadel R. Pinzon

Sanctions resulting from alleged scheme in which "flippers" improperly diverted new issue municipal bonds to broker-dealers at the expense of retail investors.

Defendants:
Core Performance Management, LLC
James P. Scherr, Deborah B. Dora, Sharlene F. Mesite, James O’Neil, Anadel R. Pinzon
Sanction Amount:
$1366711
Announcement Date:
2018-08-16
Violation
Municipal Securities Fraud
Key Docs
Official SEC press release
40.7207 -74.0112
Citigroup Inc., Citigroup Global Markets Inc.

The Commission found that three former traders at Citigroup's U.S. broker-dealer subsidiary had mismarked illiquid positions in certain proprietary accounts they managed, in some cases to cover losses from unauthorized trading. Respondents were charged with failure to supervise and inaccurate books and records and agreed to settle.

Defendants:
Citigroup Inc., Citigroup Global Markets Inc.
Sanction Amount:
$5750000
Announcement Date:
2018-08-16
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7207 -74.0112
Citigroup Inc.

Settled charge that Respondent failed to devise and maintain a sufficient system of internal accounting controls concerning a wholly-owned subsidiary, the Mexican bank Grupo Financiero Banamex, S.A. de C.V. The subsidiary/bank allegedly made loans to a contractor based on falsified work invoices, leading to losses of hundreds of millions of dollars.

Defendants:
Citigroup Inc.
Sanction Amount:
$4750000
Announcement Date:
2018-08-16
Violation
Financial Fraud
Key Docs
Official SEC press release
44.9752 -93.2685
Ameriprise Financial Services Inc.

In this case, assets from certain of the Respondent's retail investor clients were stolen by its representatives/personnel, and the Commission charged that it failed to safeguard said assets. The case was settled, including by payment of the listed sanction.

Defendants:
Ameriprise Financial Services Inc.
Sanction Amount:
$4500000
Announcement Date:
2018-08-15
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7596 -73.977
Hamlin Capital Management, LLC

Respondent investment adviser agreed to settle charges that it engaged in cross trading of thinly traded muni bonds that favored certain advisory client accounts over others. Instead of executing the trades at the midpoint between the bid and the ask price, the Respondent allegedly arranged that the trades be executed at the bid price, resulting in the undisclosed allocation of all market savings to its buying clients.

Defendants:
Hamlin Capital Management, LLC
Sanction Amount:
$1509172
Announcement Date:
2018-08-10
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Jinesh P. Brahmbhatt

Respondent settled charges that he failed to disclose conflicts of interest to his investment advisory clients in recommending promissory notes issued by Success Trade, Inc., from which he received payments based on a brokerage relationship with an affiliated entity.

Defendants:
Jinesh P. Brahmbhatt
Sanction Amount:
$1578825
Announcement Date:
2018-08-09
Violation
Trading and Pricing
Key Docs
Official SEC press release
42.5728 -71.413
Ribbon Communications Inc., Mark Greenquist, Michael Swade

Cloud communications company and two executives were charged with providing misleading quarterly revenue estimates, and they agreed to settle. The Commission's Order cites red flags that were missed or ignored, including that Ribbon Communications (or rather, its predecessor) had pulled forward deals initially projected to close in 2015 in order to achieve revenue guidance for the fourth quarter of 2014.

Defendants:
Ribbon Communications Inc.
Mark Greenquist, Michael Swade
Sanction Amount:
$1970000
Announcement Date:
2018-08-07
Violation
Financial Fraud
Key Docs
Official SEC press release
42.3628 -71.0835
Yasuna Murakami, MC2 Capital Management, LLC, MC2 Canada Capital Management, LLC

A hedge fund manager and his two advisory entities conducted a scheme to defraud investors by hiding trading losses and misappropriating investor funds. The scheme was allegedly aided by Murakami's former business partner, Avi Chiat, who settled related charges.

Defendants:
MC2 Capital Management, LLC, MC2 Canada Capital Management, LLC
Yasuna Murakami
Sanction Amount:
Approximately $7,900,000
Announcement Date:
2018-08-06
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
David A. Harbour

Defendant settled charges that, between July 2014 and August 2016, he raised money from four friends and business acquaintances by misrepresenting to them that their funds would be used to finance various businesses, including an American Indian business entity engaged in high-interest installment lending to consumers. Instead, he allegedly diverted substantial portions of the invested funds for personal purposes.

Defendants:
David A. Harbour
Sanction Amount:
$3167072
Announcement Date:
2018-07-31
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Robert Gadimian

Defendant, the former senior director of regulatory affairs for Puma Biotechnology, Inc., traded on material nonpublic (insider) information ahead of two company announcements regarding cancer drug trials.

Defendants:
Robert Gadimian
Sanction Amount:
$1161000
Announcement Date:
2018-07-26
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7195 -74.0031
William Z. McFarland, Fyre Media, Inc., Magnises, Inc., Grant Margolin, Daniel Simon

McFarland fraudulently raised millions, including for the "Fyre Festival" which was pitched as a once-in-a-lifetime music festival in the Bahamas. Margolin, McFarland's Chief Marketing Officer, and Simon, an independent contractor to his companies, allegedly provided substantial assistance.

Defendants:
Fyre Media, Inc., Magnises, Inc.
William Z. McFarland, Grant Margolin, Daniel Simon
Sanction Amount:
$27900000
Announcement Date:
2018-07-24
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7578 -73.9743
Mizuho Securities USA LLC

The Commission found that Respondent failed to maintain and enforce policies/procedures aimed at preventing the misuse of material nonpublic information pertaining to stock buybacks by its issuer customers. It agreed to settle the charges including paying the listed sanction as a penalty.

Defendants:
Mizuho Securities USA LLC
Sanction Amount:
$1250000
Announcement Date:
2018-07-23
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7062 -74.0084
Deutsche Bank Trust Company Americas

Respondent depositary bank agreed to settle the Commission's findings that it engaged in misconduct allowing pre-released ADRs to be used for abusive practices, including inappropriate short selling and inappropriate profiting around dividend payouts.

Defendants:
Deutsche Bank Trust Company Americas
Sanction Amount:
73284828.21
Announcement Date:
2018-07-20
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7062 -74.0084
Deutsche Bank Securities Inc.

Respondent, a registered broker-dealer, agreed to settle the Commission's findings that it engaged in misconduct allowing pre-released ADRs to be used for abusive practices, including inappropriate short selling and inappropriate profiting around dividend payouts.

Defendants:
Deutsche Bank Securities Inc.
Sanction Amount:
1648265.92
Announcement Date:
2018-07-20
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Dhru Desai

Final judgment entered on consent against former CFO of consulting and software development company Quadrant 4 System Corp., the alleged instrumentality in an accounting fraud that misled investors and allowed the former executive to siphon millions.

Defendants:
Dhru Desai
Sanction Amount:
$1628578
Announcement Date:
2018-07-19
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7069 -74.0045
BGC Financial, L.P.

Respondent broker-dealer agreed to settle charges that it failed to preserve audio files sought by the SEC, and inaccurately recorded in its books and records certain travel, entertainment, and other expenses that lacked sufficient business purpose (they appeared to be rewards for brokers) as "selling and promotion."

Defendants:
BGC Financial, L.P.
Sanction Amount:
$1250000
Announcement Date:
2018-07-17
Violation
Financial Fraud
Key Docs
Official SEC press release
41.1046 -73.5763
Matthew Harriton, 875 Holdings, LLC

Defendants agreed to settle charges that they, along with several others, solicited investments for the bulk purchase and resale of tickets to popular Broadway shows and concerts, but used the majority of the funds raised from investors to make payments to earlier investors and to enrich themselves.

Defendants:
875 Holdings, LLC
Matthew Harriton
Sanction Amount:
$7949327
Announcement Date:
2018-07-16
Violation
Offering Fraud
Key Docs
Official SEC press release
40.0484 -83.1231
Advanced Drainage Systems, Inc., Mark B. Sturgeon, CPA

Settlement of Commission's findings that the financial statements of the entity Respondent, a drainage pipe manufacturer, were misstated due to improper accounting, including unsupported journal entries directed or approved by Respondent Sturgeon, the former CFO, and due to insufficient internal accounting controls.

Defendants:
Advanced Drainage Systems, Inc.
Mark B. Sturgeon, CPA
Sanction Amount:
$1273970
Announcement Date:
2018-07-10
Violation
Financial Fraud
Key Docs
Official SEC press release
37.7906 -122.393
Charles Schwab & Co., Inc.

Defendant broker-dealer agreed to settle charges that it failed to file Suspicious Activity Reports on the suspicious transactions of independent investment advisers that it terminated from custodying their client accounts with Defendant.

Defendants:
Charles Schwab & Co., Inc.
Sanction Amount:
$2800000
Announcement Date:
2018-07-09
Violation
Trading and Pricing
Key Docs
Official SEC press release
47.3699 8.53864
Credit Suisse Group AG

Respondent agreed to settle charges that several of its senior managers in the Asia-Pacific region sought to win business by hiring and promoting individuals connected to government officials as part of a quid pro quo arrangement. The Commission found that, in a six-year period, Respondent offered to hire more than 100 individuals referred by or connected to foreign government officials, resulting in millions of dollars of business revenue.

Defendants:
Credit Suisse Group AG
Sanction Amount:
$29700000
Announcement Date:
2018-07-05
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
32.9263 -97.0763
United Development Funding III, LP, United Development Funding IV, Hollis M. Greenlaw, Benjamin L. Wissink, Theodore F. Etter, Cara D. Obert, David A. Hanson

Settlement of charges against two real estate investment funds and four executives for allegedly failing to disclose that one of the funds could not pay its distributions and was using money from the other, newer fund to pay them.

Defendants:
United Development Funding III, LP, United Development Funding IV
Hollis M. Greenlaw, Benjamin L. Wissink, Theodore F. Etter, Cara D. Obert, David A. Hanson
Sanction Amount:
$8275000
Announcement Date:
2018-07-03
Violation
Financial Fraud
Key Docs
Official SEC press release
41.8884 -87.6355
Beam Suntory Inc.

Respondent agreed to settle charges that its Indian subsidiary made improper payments to government officials using third parties, to increase sales orders, process license and label registrations, and facilitate the distribution of Respondent’s distilled spirit products.

Defendants:
Beam Suntory Inc.
Sanction Amount:
$8181838
Announcement Date:
2018-07-02
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
43.6161 -84.2003
The Dow Chemical Company

Respondent agreed to settle charges that it failed to apply the Commission’s perquisite test and ensure that approximately $3 million in perquisites provided to its CEO were adequately disclosed.

Defendants:
The Dow Chemical Company
Sanction Amount:
$1750000
Announcement Date:
2018-07-02
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
T.J. Jesky, Mark F. DeStefano

Defendants, an attorney and his law firm’s business affairs manager, allegedly sold shares of UBI Blockchain Internet Ltd. - that were purportedly acquired in exchange for legal services - in violation of the registration statement. They agreed to settle the charges.

Defendants:
T.J. Jesky, Mark F. DeStefano
Sanction Amount:
Approximately $1,588,682
Announcement Date:
2018-07-02
Violation
Trading and Pricing
Key Docs
Official SEC press release
29.7533 -95.3723
KBR, Inc.

The Commission found that Respondent, an engineering and construction company, inflated a performance metric known as "work in backlog," which is supposed to represent the amount of revenue expected in the future from firm orders under previously awarded contracts. And that, as a result, Respondent restated earnings in certain of its financial statements. The charges were settled.

Defendants:
KBR, Inc.
Sanction Amount:
$2500000
Announcement Date:
2018-07-02
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7623 -73.9694
Cantor Fitzgerald & Co., Adam Mattessich, Joseph (a/k/a Jay) Ludovico

Settlement on the part of the entity broker-dealer of charges based on the conduct of a former supervisor and two traders who reported to him. Allegedly, pursuant to an improper commission-splitting scheme, the supervisor received off-book payments from the traders.

Defendants:
Cantor Fitzgerald & Co.
Adam Mattessich, Joseph (a/k/a Jay) Ludovico
Sanction Amount:
$1250000
Announcement Date:
2018-06-29
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7547 -73.9806
Morgan Stanley Smith Barney LLC

MSSB charged with failure to detect/prevent one of its advisory representatives from misusing or misappropriating client funds. The firm consented to this sanction without admitting or denying the charge.

Defendants:
Morgan Stanley Smith Barney, LLC
Sanction Amount:
$3600000
Announcement Date:
2018-06-29
Violation
Financial Fraud
Key Docs
Official SEC press release
42.355 -71.056
THL Managers V, LLC, THL Managers VI, LLC

Settled proceedings brought on findings of inadequate disclosures and breach of fiduciary duty by the private equity fund adviser Respondents. According to the consent Order, Respondents failed to adequately disclose to the funds they advised, and to the funds’ limited partners prior to their commitment of capital, that they may receive accelerated fees upon the early termination of portfolio company agreements. Also, Respondents' receipt of accelerated fees was a potential conflict of interest, so they could not effectively consent to this practice on behalf of the funds.

Defendants:
THL Managers V, LLC, THL Managers VI, LLC
Sanction Amount:
$6506016
Announcement Date:
2018-06-29
Violation
Financial Fraud
Key Docs
Official SEC press release
38.6318 -90.2164
Wells Fargo Advisors LLC

Respondent was charged with improperly generating large fees by encouraging retail customers to actively trade financial products known as market-linked investments. It agreed to settle the charges.

Defendants:
Wells Fargo Advisors LLC
Sanction Amount:
$5108441
Announcement Date:
2018-06-25
Violation
Trading and Pricing
Key Docs
Official SEC press release
32.7872 -96.7942
Jefferey Gordon, Texas Coastal Energy Company, LLC

Defendants settled charges that they misappropriated for their own use more than $2.6 million out of over $8 million investor funds raised. Potential investors were cold-called and pitched opportunities to finance the drilling and completion of oil-and-gas prospects in Kansas and Texas in exchange for a share of future oil-and-gas production revenue. However, according to the complaint, Defendants' pitches and offering materials were false and misleading.

Defendants:
Texas Coastal Energy Company, LLC
Jefferey Gordon
Sanction Amount:
$7200000
Announcement Date:
2018-06-19
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7127 -74.0153
Merrill Lynch, Pierce, Fenner & Smith Incorporated

The Commission found that, in a practice called "masking," Merrill Lynch falsely informed customers that it had executed millions of orders internally when it actually had routed them for execution at other broker-dealers, including proprietary trading firms and wholesale market makers. This practice would create the appearance of a more active trading center and reduce access fees paid to exchanges.

Defendants:
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Sanction Amount:
$42000000
Announcement Date:
2018-06-19
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
A. Fossum, Jr., Alonzo R. Cahoon

Partial settlement (Fossum). This Defendant allegedly misappropriated hundreds of thousands of dollars of investor funds raised using fraudulent statements and material omissions in unregistered securities offerings. Further, the Commission charged that he repeatedly breached his fiduciary duties by indiscriminately commingling assets of the multiple investment funds/offerings.

Defendants:
A. Fossum, Jr., Alonzo R. Cahoon
Sanction Amount:
$1271552
Announcement Date:
2018-06-15
Violation
Offering Fraud
Key Docs
Official SEC press release
34.1464 -118.128
Yin Nan "Michael" Wang, Wendy Ko, Velocity Investment Group, Inc., Bio Profit Series I, LLC, Bio Profit Series II, LLC, Bio Profit Series III, LLC, Bio Profit Series V, LLC, Rockwell Realty Management, Inc.

Final judgments against a group of companies and their owner/operators used to perpetrate a real estate investment scheme. The companies, directly or indirectly, were purportedly in the business of making real estate-related loans in California, but in reality Wang and Ko used money received from newer investors to make the promised quarterly interest payments to earlier investors in Ponzi-like fashion.

Defendants:
Velocity Investment Group, Inc., Bio Profit Series I, LLC, Bio Profit Series II, LLC, Bio Profit Series III, LLC, Bio Profit Series V, LLC, Rockwell Realty Management, Inc.
Yin Nan "Michael" Wang, Wendy Ko,
Sanction Amount:
90896869.57
Announcement Date:
2018-06-13
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7127 -74.0153
Merrill Lynch, Pierce, Fenner & Smith Incorporated

The Commission found that Merrill Lynch traders and salespeople convinced customers to overpay for residential mortgage-backed securities by deceiving them about the price the bank paid to acquire them.

Defendants:
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Sanction Amount:
$15803161
Announcement Date:
2018-06-12
Violation
Trading and Pricing
Key Docs
Official SEC press release
42.4958 -71.1934
Endurance International Group Holdings Inc.

The SEC found that Respondent, an online marketing company, as well as a company that it acquired in 2016 (Constant Contact Inc.), fraudulently misled investors about subscriptions to their web hosting and internet-based marketing products. Respondent agreed to settle the charges.

Defendants:
Endurance International Group Holdings Inc.
Sanction Amount:
$8000000
Announcement Date:
2018-06-05
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7542 -73.9714
deVere USA, Inc.

The Commission found that the Respondent investment adviser failed to disclose conflicts of interest to its retail clients, and it agreed to pay an $8 million civil penalty to settle the charges.

Defendants:
deVere USA, Inc.
Sanction Amount:
$8000000
Announcement Date:
2018-06-04
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7029 -74.0139
Chardan Capital Markets LLC, Industrial and Commercial Bank of China Financial Services LLC, Jerard Basmagy

Two broker-dealers and an anti-money laundering officer settled charges of failing to report suspicious sales of billions of penny stock shares. Chardan was the introducing broker and ICBCFS cleared the trades.

Defendants:
Chardan Capital Markets LLC, Industrial and Commercial Bank of China Financial Services LLC
Jerard Basmagy
Sanction Amount:
$1875000
Announcement Date:
2018-05-16
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7653 -73.9808
Visium Asset Management, LP

Respondent advisory firm Visium Asset Management LP agreed to settle charges related to asset mismarking and insider trading by its privately managed hedge funds and portfolio managers.

Defendants:
Visium Asset Management, LP
Sanction Amount:
$10231157
Announcement Date:
2018-05-08
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Mark Feathers

Sanction awarded after SEC won summary judgment, on allegations that Defendant and his company Small Business Capital Corp. raised $42 million by selling securities issued by Investors Prime Fund LLC and SBC Portfolio Fund LLC - two mortgage investment funds they controlled. However, promised high returns were funded in part with new investors’ money, in a Ponzi-like scheme.

Defendants:
Mark Feathers
Sanction Amount:
$7792961
Announcement Date:
2018-05-02
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Douglas A. McClain Jr., et al.

McClain was a member and President of SW Argyll Investments, LLC, and through it operated a fraudulent stock-collateralized loan business with a partner. They induced at least nine issuer affiliates to transfer ownership of millions of shares of publicly traded stock as collateral for purported loans, based on a false promise to return the shares to borrowers upon repayments of the loans. Instead, they simply sold the pledged shares.

Defendants:
Douglas A. McClain Jr., et al.
Sanction Amount:
9471492.45
Announcement Date:
2018-05-02
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
William "Billy" Walters, Thomas C. Davis

Davis was a board member of Dean Foods Company and he owed Walters money. In exchange for assistance with his financial debts, Davis regularly shared inside information about Dean Foods with Walters in advance of market-moving events, using prepaid cell phones and other methods in an effort to avoid detection. This sanction represents disgorgement and prejudgment interest agreed to by Walters. Both men were also criminally convicted.

Defendants:
William "Billy" Walters, Thomas C. Davis
Sanction Amount:
22556858.46
Announcement Date:
2018-04-30
Violation
Trading and Pricing
Key Docs
Official SEC press release
34.7182 135.593
Panasonic Corporation

The Commission found, inter alia, that Respondent's U.S. subsidiary, Panasonic Avionics Corp., offered a lucrative consulting position to a government official at a state-owned airline ("Middle East region") to induce the official to help obtain and retain business from the airline. Respondent agreed to settle the charges.

Defendants:
Panasonic Corporation
Sanction Amount:
Approximately $143,000,000
Announcement Date:
2018-04-30
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
37.4172 -122.025
Altaba Inc., f/d/b/a Yahoo! Inc.

Respondent agreed to settle charges that it failed to disclose one of the world’s largest data breaches in which hackers stole personal data relating to hundreds of millions of users. The Commission found that investors were misled until the fact of the breach was disclosed, over two years after it occurred.

Defendants:
Altaba Inc., f/d/b/a Yahoo! Inc.
Sanction Amount:
$35000000
Announcement Date:
2018-04-24
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7426 -74.3603
The Dun & Bradstreet Corporation

Settlement of allegations of improper payments/bribes made by two Chinese subsidiaries, in order to acquire non-public financial statement information on Chinese entities and non-public personal data. One of the subsidiaries also allegedly made improper payments to obtain specific business.

Defendants:
The Dun & Bradstreet Corporation
Sanction Amount:
$9221484
Announcement Date:
2018-04-23
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
33.6704 -117.862
Capital Cove Bancorp LLC, Christopher M. Lee

This sanction was ordered following default judgment against the entity defendant and summary judgment against Lee. They were found to have stolen investor money from nearly $2 million raised for purported investments in distressed real estate.

Defendants:
Capital Cove Bancorp LLC
Christopher M. Lee
Sanction Amount:
3841301.92
Announcement Date:
2018-04-11
Violation
Offering Fraud
Key Docs
Official SEC press release
40.4403 -80.0001
PNC Investments LLC

Respondent PNC Investments LLC agreed to settle charges that it failed to disclose conflicts of interest and violated its duty to seek best execution by investing advisory clients in higher-cost mutual fund shares when lower-cost shares of the same funds were available.

Defendants:
PNC Investments LLC
Sanction Amount:
$7307770
Announcement Date:
2018-04-06
Violation
Trading and Pricing
Key Docs
Official SEC press release
41.1828 -96.1034
Securities America Advisors Inc.

Respondent Securities America Advisors Inc. agreed to settle charges that it failed to disclose conflicts of interest and violated its duty to seek best execution by investing advisory clients in higher-cost mutual fund shares when lower-cost shares of the same funds were available.

Defendants:
Securities America Advisors Inc.
Sanction Amount:
$5828448
Announcement Date:
2018-04-06
Violation
Trading and Pricing
Key Docs
Official SEC press release
39.5757 -104.885
Geneos Wealth Management Inc.

Respondent Geneos Wealth Management Inc. agreed to settle charges that it: (1) failed to disclose conflicts of interest and violated its duty to seek best execution by investing advisory clients in higher-cost mutual fund shares when lower-cost shares of the same funds were available; and (2) failed to identify its revised mutual fund selection disclosures in a brochure as a “material change.”

Defendants:
Geneos Wealth Management Inc.
Sanction Amount:
$1808121
Announcement Date:
2018-04-06
Violation
Trading and Pricing
Key Docs
Official SEC press release
37.4539 -77.6499
Merrill Robertson, Jr., Sherman C. Vaughn Jr., Cavalier Union Investments LLC

This sanction was included in a final judgment against Robertson, who participated in defrauding investors. They were promised diversified holdings, but instead were bilked of nearly $6 million that was misappropriated and spent on personal expenses

Defendants:
Cavalier Union Investments LLC
Merrill Robertson, Jr., Sherman C. Vaughn Jr.
Sanction Amount:
Approximately $8,000,000
Announcement Date:
2018-04-05
Violation
Offering Fraud
Key Docs
Official SEC press release
32.8123 -117.124
Maxwell Technologies, Inc., Van Andrews, David Schramm, James DeWitt

Respondent, a manufacturer of energy storage and delivery products, and one of its former sales executives were charged with conducting a fraudulent revenue recognition scheme by entering into secret side deals with customers and falsifying records. Two former executives also were charged and settled for failing to adequately respond to red flags.

Defendants:
Maxwell Technologies, Inc.
Van Andrews, David Schramm, James DeWitt
Sanction Amount:
$2949991
Announcement Date:
2018-03-27
Violation
Financial Fraud
Key Docs
Official SEC press release
40.5734 -122.368
Tobias Preston, Charles Preston, Caleb Preston, Laura Sanford, McKinley Mortgage Co. LLC, McKinley Mortgage Company, LLC

Settlement of charges against the operators of a real estate investment business who raised more than $66 million from approximately 300 investors, most of whom were retail investors, by falsely stating that investments in their fund, Alaska Financial Company III, LLC (AFC III), were secure and that AFC III earned high returns. According to the SEC, AFC III was insolvent and unable to generate sufficient revenue to meet its interest obligations for years. Also, funds allegedly were misused by Tobias Preston and McKinley Mortgage on personal and operational expenses. The SEC also alleged that Charles Preston, Caleb Preston, and Accounting Manager Laura Sanford helped hide the fraud.

Defendants:
McKinley Mortgage Co. LLC, McKinley Mortgage Company, LLC
Tobias Preston, Charles Preston, Caleb Preston, Laura Sanford
Sanction Amount:
Approximately $50,075,000
Announcement Date:
2018-03-22
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Howard B. Present

The former CEO of investment management firm F-Squared Investments was found liable for false and misleading statements to investors concerning the firm's "AlphaSector strategy," an algorithmically balanced model portfolio of sector ETFs. Among other things, the strategy was touted as having a successful seven-year track record, which was longer than it had even been in existence.

Defendants:
Howard B. Present
Sanction Amount:
$13801607
Announcement Date:
2018-03-22
Violation
Financial Fraud
Key Docs
Official SEC press release
32.8894 -79.9356
Revolutions Medical Corp., Rondald L. Wheet

Defendants, a syringe manufacturer and its CEO, committed fraud through a series of false press releases depicting the company as on the cusp of mass production and distribution with significant sales agreements, including one with the U.S. Department of Defense.

Defendants:
Revolutions Medical Corp.
Rondald L. Wheet
Sanction Amount:
$2905000
Announcement Date:
2018-03-21
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7127 -74.0153
Merrill Lynch, Pierce, Fenner & Smith Incorporated

Respondent firm agreed to settle charges that it failed to perform required gatekeeping functions in the unregistered sales of securities on behalf of a China-based issuer, Longtop Financial Technological Limited, and its affiliates.

Defendants:
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Sanction Amount:
$1404000
Announcement Date:
2018-03-08
Violation
Trading and Pricing
Key Docs
Official SEC press release
33.5661 -111.923
Voya Investments, LLC, Directed Services LLC

Two investment adviser subsidiaries of Voya Holdings Inc. were charged with failing to disclose conflicts of interest and making misleading disclosures regarding their practice of recalling securities on loan so their affiliates could receive tax benefits. The advisers agreed to settle the charges.

Defendants:
Voya Investments, LLC, Directed Services LLC
Sanction Amount:
3647469.14
Announcement Date:
2018-03-08
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7069 -74.0113
New York Stock Exchange LLC, NYSE American LLC, NYSE Arca, Inc.

Settlement of charges of multiple regulatory failures, including the first-ever charged violation of Regulation SCI. The charges arose, in whole or in part, from several disruptive market events, including an erroneously implemented trading halt, negligent misrepresentations of stock prices as “automated” despite extensive system issues ahead of a total shutdown of two of the exchanges, and price collars during unusual market volatility on Aug. 24, 2015, without a rule in effect to permit them.

Defendants:
New York Stock Exchange LLC, NYSE American LLC, NYSE Arca, Inc.
Sanction Amount:
$14000000
Announcement Date:
2018-03-06
Violation
Trading and Pricing
Key Docs
Official SEC press release
44.9752 -93.2685
Ameriprise Financial Services Inc.

Minnesota-based broker-dealer and investment adviser Ameriprise Financial agreed to settle charges for recommending/selling higher-fee mutual fund shares to retail retirement account customers, and for failing to provide them with sales charge waivers.

Defendants:
Ameriprise Financial Services Inc.
Sanction Amount:
Approximately $2,008,592.31
Announcement Date:
2018-02-28
Violation
Trading and Pricing
Key Docs
Official SEC press release
33.6657 -117.663
Dedicated Sound and Audio, Inc., Steven Ventre, Choice Equity, Eric Lovy

As alleged, Choice Equity was a telemarketer controlled by recidivist Lovy, retained to solicit investors on DSA's behalf. The investors in the unregistered offering were falsely told in a private placement memorandum drafted by Ventre and Lovy that DSA would pay no more than 15% of the amount raised in sales commissions to registered broker-dealers. In reality, DSA paid more than 33% of the amount raised to Choice Equity and Lovy. All Defendants settled the charges.

Defendants:
Dedicated Sound and Audio, Inc., Choice Equity
Steven Ventre, Eric Lovy
Sanction Amount:
$2920850
Announcement Date:
2018-02-26
Violation
Offering Fraud
Key Docs
Official SEC press release
33.6194 -117.873
Steven Zoernack, EquityStar Capital Management, LLC

The Commission found that Respondents made material misrepresentations and omissions in connection with the offer and sale of interests in Global Partners Fund, LLC and Momentum Growth Fund, LLC, two unregistered investment funds that Zoernack created and managed through EquityStar. Zoernack was criminally convicted in a parallel proceeding.

Defendants:
EquityStar Capital Management, LLC
Steven Zoernack
Sanction Amount:
2890518.54
Announcement Date:
2018-02-26
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Eric J. McPhail, Douglas A. Parigian, John J. Gilmartin, Douglas Clapp, James A. Drohen, John C. Drohen, Jamie A. Meadows

Combined sanction as against all Defendants, most of whom were amateur golfers and friends in the New England area, and all of whom were alleged members of an insider trading ring that included a senior executive tipper (albeit unintentional) at American Superconductor Corporation.

Defendants:
Eric J. McPhail, Douglas A. Parigian, John J. Gilmartin, Douglas Clapp, James A. Drohen, John C. Drohen, Jamie A. Meadows
Sanction Amount:
$1063799
Announcement Date:
2018-02-20
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Sharone Perlstein, Aric Swartz, Hadas Yaron, Jonathan Strum, Esq., Alan Weinberg, CPA, Weinberg & Baer LLC

Three Israeli residents (Perlstein, Swartz, Yaron) allegedly created numerous public shell companies, pursuant to a fraudulent scheme to profit by selling shares in the companies. The remaining Defendants were allegedly gatekeepers who provided substantial assistance in the scheme.

Defendants:
Weinberg & Baer LLC
Sharone Perlstein, Aric Swartz, Hadas Yaron, Jonathan Strum, Esq., Alan Weinberg, CPA
Sanction Amount:
2166288.68
Announcement Date:
2018-02-16
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Kevin J. Amell

Defendant, a portfolio manager at a major asset management firm, carried out a fraudulent matched-trades scheme, in which he diverted at least $1.95 million to his personal account by prearranging trades of call options between his own account and the brokerage accounts of a fund he managed at prices that were disadvantageous to the fund and advantageous to him.

Defendants:
Kevin J. Amell
Sanction Amount:
$1954457
Announcement Date:
2018-02-15
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Geoffrey H. Lunn, Darlene A. Bishop, Vincent G. Curry

Sanction against Lunn for his role in a fraud under the name of Dresdner Financial, a fictitious financial services company purportedly based in Chicago, Illinois. Lunn posed as the Vice-President of Dresdner Financial and misappropriated more than $5 million from at least 70 (would-be) investors.

Defendants:
Geoffrey H. Lunn, Darlene A. Bishop, Vincent G. Curry
Sanction Amount:
$11412328
Announcement Date:
2018-02-12
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7062 -74.0084
Deutsche Bank Securities Inc., Benjamin Solomon

Respondent firm and its former head trader agreed to settle charges that they failed to supervise traders who made false and misleading statements during negotiations for sales of commercial mortgage-backed securities.

Defendants:
Deutsche Bank Securities Inc.
Benjamin Solomon
Sanction Amount:
Approximately $3,865,000
Announcement Date:
2018-02-12
Violation
Trading and Pricing
Key Docs
Official SEC press release
34.0504 -118.261
Wedbush Securities, Inc.

Settled charges for violation of the Customer Protection Rule, based on alleged significant error in the Respondent's weekly calculations to determine the net amount that should have been deposited into its Reserve Account.

Defendants:
Wedbush Securities, Inc.
Sanction Amount:
$1304197
Announcement Date:
2018-02-05
Violation
Financial Fraud
Key Docs
Official SEC press release
42.3556 -71.0576
Boston Trading and Research, LLC, Ahmet Devrim Akyil, Craig Karlis

Final judgment entered against Karlis, a former owner of the entity Defendant. The case alleged that investors were defrauded regarding a purported foreign currency ("Forex") trading venture. Allegations included misappropriated money, misleading account statements, etc.

Defendants:
Boston Trading and Research, LLC
Ahmet Devrim Akyil, Craig Karlis
Sanction Amount:
2190444.68
Announcement Date:
2018-02-02
Violation
Offering Fraud
Key Docs
Official SEC press release
39.1098 -82.9807
Hadsell Chemical Processing, LLC, Robert Walton, Jr.

SEC's motion for final judgment granted against Walton, the former President of former President of Hadsell Chemical Processing. As alleged, Walton made material misrepresentations to 65 investors in connection with the offer and sale of approximately $12 million in promissory notes - such as that the investments were guaranteed, and that the company had received multi-million dollar contracts and was profitable - and failed to register the offering with the SEC.

Defendants:
Hadsell Chemical Processing, LLC
Robert Walton, Jr.
Sanction Amount:
1064127.38
Announcement Date:
2018-02-02
Violation
Offering Fraud
Key Docs
Official SEC press release
44.9379 -72.5048
Ariel Quiros, William Stenger, Jay Peak, Inc., et al.

This case involved alleged fraudulent offerings of EB-5 investments by Quiros and his businesses in Vermont-based ski resort "Jay Peak." Quiros allegedly misused more than $50 million in investor funds, and his businesses failed to contribute as promised, jeopardizing the EB-5 status of investments that were not misused.

Defendants:
Jay Peak, Inc., et al.
Ariel Quiros, William Stenger
Sanction Amount:
Approximately $82,500,000
Announcement Date:
2018-02-02
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Thomas Edward Andrews

Respondent conducted an unauthorized business by offering and selling securities in the form of investments in “The Jackson Trust” and “Lincoln.” In so doing, he made untrue statements of material fact, and omitted to state material facts necessary to avoid misleading investors.

Defendants:
Thomas Edward Andrews
Sanction Amount:
$8380000
Announcement Date:
2018-02-01
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Scott Walter Christensen

Respondent was the personal assistant to Thomas Edward Andrews. He provided substantial assistance to Andrews in his scheme of unauthorized sales of securities in the form of investments in “The Jackson Trust” and “Lincoln,” including preparing false account statements and posing as an executive of one of the purported issuers.

Defendants:
Scott Walter Christensen
Sanction Amount:
$1000000
Announcement Date:
2018-02-01
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Robert L. Sonfield, Donald C. Bradley, Jeffrey W. Bradley, Jason Landess, Marc Lane, Roger Brewer

Partial settlement (Landess, Sonfeld) and two default judgments (Brewer, Lane) entered in SEC's case alleging various securities law violations in the unregistered, nonexempt distribution of more than 10.8 million shares of the common stock of a Houston, Texas software development company, Exobox Technologies Corp.

Defendants:
Robert L. Sonfield, Donald C. Bradley, Jeffrey W. Bradley, Jason Landess, Marc Lane, Roger Brewer
Sanction Amount:
6637101.18
Announcement Date:
2018-01-25
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7621 -73.9846
Industrial and Commercial Bank of China Financial Services LLC

Respondent broker-dealer agreed to settle charges that it repeatedly violated Rule 204 of Regulation SHO due to improper credit claims, incurring numerous, prolonged fails to deliver positions as required.

Defendants:
Industrial and Commercial Bank of China Financial Services LLC
Sanction Amount:
$1250000
Announcement Date:
2018-01-18
Violation
Trading and Pricing
Key Docs
Official SEC press release
41.3159 -72.0973
David S. Haddad, Trafalgar Square Risk Management, LLC, New England RE, LLC

Settled charges that Haddad and two re-insurance companies he owned/operated raised at least $2.5 million using misleading statements in the offer and sale of unregistered securities, and then misappropriated a significant portion of the money.

Defendants:
Trafalgar Square Risk Management, LLC, New England RE, LLC
David S. Haddad
Sanction Amount:
1097257.92
Announcement Date:
2018-01-11
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
David B. Kaplan, Esq., Synchronized Organizational Solutions International Ltd., Synchronized Organizational Solutions LLC , Manna International Enterprises Ltd.

Final judgment entered on consent against all Defendants, settling charges that they raised approximately $15.8 million by lying to 26 investors in eight states, by telling them that their funds would be invested in a low-risk, private off-shore trading program whereas, in reality, a significant percentage was misappropriated.

Defendants:
Synchronized Organizational Solutions International Ltd., Synchronized Organizational Solutions LLC , Manna International Enterprises Ltd.
David B. Kaplan, Esq.
Sanction Amount:
8120042.48
Announcement Date:
2018-01-09
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7539 -73.9717
Train Babcock Advisors LLC

Defendant agreed to settle charges of being the vehicle by which a former principal, John Rogicki, stole millions from his advisory client, a charitable foundation established by an elderly widow to donate her estate to health and education causes.

Defendants:
Train Babcock Advisors LLC
Sanction Amount:
Approximately $1,700,000
Announcement Date:
2017-12-26
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7127 -74.0153
Merrill Lynch, Pierce, Fenner & Smith Incorporated

Settlement of allegations that Respondent failed to file and timely file a number of Suspicious Activity Reports (SARs) as a result of not having appropriate anti-money laundering policies and procedures.

Defendants:
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Sanction Amount:
$13000000
Announcement Date:
2017-12-21
Violation
Financial Fraud
Key Docs
Official SEC press release
32.756 -97.3305
TPG Capital Advisors, LLC

Settled proceedings brought on findings of inadequate disclosures and breach of fiduciary duty by private equity fund adviser TPG. According to the consent Order, TPG failed to disclose to the funds it advised, and to the funds’ limited partners prior to their commitment of capital, that it may accelerate future monitoring fees upon termination of monitoring agreements with portfolio companies, which it actually did as a matter-of-course. Also, TPG's receipt of accelerated monitoring fees from four portfolio companies was a conflict of interest, so it could not effectively consent to this practice on behalf of the funds.

Defendants:
TPG Capital Advisors, LLC
Sanction Amount:
12849128.79
Announcement Date:
2017-12-21
Violation
Financial Fraud
Key Docs
Official SEC press release
44.9752 -93.2685
Ameriprise Financial Services Inc.

Settled allegations of misstatements made by registered investment adviser Ameriprise to certain of its advisory clients concerning the performance track record of the F-Squared "AlphaSector strategy."

Defendants:
Ameriprise Financial Services Inc.
Sanction Amount:
$7750000
Announcement Date:
2017-12-08
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Naris Chamroonrat, Yaniv Avnon, Ran Armon, G Six Trading Y.R. Ltd., Adam L. Plumer

Defendant Chamroonrat confessed to operating a phony day-trading firm "Nonko Trading" which bilked hundreds of investors worldwide out of more than $1.4 million in deposits. Plumer was charged by the Commission with involvement and settled without admitting or denying. Default judgment was entered against the remaining defendants.

Defendants:
G Six Trading Y.R. Ltd.
Naris Chamroonrat, Yaniv Avnon, Ran Armon, Adam L. Plumer
Sanction Amount:
1057164.9
Announcement Date:
2017-11-21
Violation
Trading and Pricing
Key Docs
Official SEC press release
51.0445 -114.066
Penn West Petroleum Ltd., d/b/a Obsidian Energy Ltd., Todd H. Takeyasu, Jeffery A. Curran, Waldemar Grab

Partial settlement (by the entity defendant, only). Canada-based oil and gas company was charged with an extensive and long-running accounting fraud that artificially reduced its operating costs by as much as 20 percent in certain periods.

Defendants:
Penn West Petroleum Ltd., d/b/a Obsidian Energy Ltd.
Todd H. Takeyasu, Jeffery A. Curran, Waldemar Grab
Sanction Amount:
$8500000
Announcement Date:
2017-11-20
Violation
Financial Fraud
Key Docs
Official SEC press release
42.3542 -71.0514
William D. Allen, Susan Daub, Capital Financial Partners, LLC, Capital Financial Partners Enterprises, LLC, Capital Financial Holdings, LLC

Ponzi scheme case involving money raised to make loans to professional athletes. Final judgment entered against all Defendants, who allegedly misled investors about the terms, circumstances, and even the existence of some loans, and only used a portion of the funds raised as promised.

Defendants:
Capital Financial Partners, LLC, Capital Financial Partners Enterprises, LLC, Capital Financial Holdings, LLC
William D. Allen, Susan Daub
Sanction Amount:
Approximately $15,700,000
Announcement Date:
2017-11-17
Violation
Offering Fraud
Key Docs
Official SEC press release
38.6318 -90.2164
Wells Fargo Advisors LLC

Settlement of allegations that Respondent failed to file and timely file a number of Suspicious Activity Reports (SARs) regarding continuing activity occurring in accounts held at branch offices that focused on international customers.

Defendants:
Wells Fargo Advisors LLC
Sanction Amount:
$3500000
Announcement Date:
2017-11-13
Violation
Financial Fraud
Key Docs
Official SEC press release
39.1737 -76.8042
Osiris Therapeutics, Inc., Phillip R. Jacoby, Jr., Gregory I. Law, Lode B. Debrabandere, Bobby Dwayne Montgomery

Partial settlement (by the entity Defendant) of charges of fraudulent accounting and deficient financial statement. The company allegedly improperly: (i) recognized revenue using artificially inflated prices; (ii) backdated documents to recognize revenue in earlier periods; (iii) prematurely recognized revenue upon delivery of products to be held on consignment; (iv) used pricing data known to be false; and (v) attempted to book revenue on a fictitious transaction, among other accounting improprieties.

Defendants:
Osiris Therapeutics, Inc.
Phillip R. Jacoby, Jr., Gregory I. Law, Lode B. Debrabandere, Bobby Dwayne Montgomery
Sanction Amount:
$1500000
Announcement Date:
2017-11-02
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Thomas J. Buck

Former Merrill Lynch broker out of Indiana agreed to settle SEC charges that he fraudulently schemed to increase his personal income by obtaining excessive commissions and fees from investors.

Defendants:
Thomas J. Buck
Sanction Amount:
5091637.14
Announcement Date:
2017-10-31
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7611 -73.9802
UBS Financial Services Inc.

Respondent broker-dealer/investment adviser agreed to settle charges that it failed to provide certain retail retirement and charitable brokerage accounts with sales charge waivers and/or lower fee share classes when selling certain mutual funds.

Defendants:
UBS Financial Services Inc.
Sanction Amount:
$3500000
Announcement Date:
2017-10-27
Violation
Trading and Pricing
Key Docs
Official SEC press release
41.8781 -87.6323
Augustine Capital Management, LLC, John T. Porter, Thomas F. Duszynski

The Commission found that the Respondent adviser, ACM, via two of its principals (the other Respondents), made multiple self-interested loans out of a managed fund without proper disclosure to, or the consent of, investors in the fund. They also were found to have improperly used investor funds to pay for virtually all of ACM’s overhead expenses, and to have failed to maintain the integrity of individual investor accounts, including by providing account statements that did not accurately reflect the value of certain underlying investments.

Defendants:
Augustine Capital Management, LLC
John T. Porter, Thomas F. Duszynski
Sanction Amount:
1003306.1
Announcement Date:
2017-10-26
Violation
Financial Fraud
Key Docs
Official SEC press release
40.9771 -73.742
Henry Lin-Han Jan, Artemus Mayor

Respondents, the President and a control person of SK3 Group, Inc., a publicly traded microcap company purportedly operating in the medical marijuana industry, agreed to settle charges of a fraudulent manipulation scheme. They allegedly arranged sham transactions that they announced in press releases to boost the stock price, then sold into the misinformed/inflated market through nominees.

Defendants:
Henry Lin-Han Jan, Artemus Mayor
Sanction Amount:
$2650000
Announcement Date:
2017-10-26
Violation
Market Manipulation
Key Docs
Official SEC press release
40.7354 -74.1683
Lime Energy Co., Joaquin Alberto Dos Santos Almeida, Karan Raina, Julianne M. Chandler, James G. Smith

Settlement with energy services provider and four executives for their alleged roles in an accounting fraud in which the company recognized revenue earlier than allowed in order to meet internal targets. $20 million in revenue improperly recognized from at least 2010 to 2012.

Defendants:
Lime Energy Co.
Joaquin Alberto Dos Santos Almeida, Karan Raina, Julianne M. Chandler, James G. Smith
Sanction Amount:
$1,125,000
Announcement Date:
2017-10-17
Violation
Financial Fraud
Key Docs
Official SEC press release
37.1394 -84.5666
JustInfo LLC, David Weddle, Scott Allensworth

Defendants, a self-described "investment club" and its majority owner, settled charges of fraudulently selling investment contracts and stealing at least $1 million for their own use and to make payments of purported returns to prior investors in classic Ponzi-fashion.

Defendants:
JustInfo LLC
David Weddle, Scott Allensworth
Sanction Amount:
1663712.34
Announcement Date:
2017-10-11
Violation
Offering Fraud
Key Docs
Official SEC press release
41.8518 -72.6962
GAW Miners LLC, ZenMiner LLC, Homero Joshua Garza

Final judgment entered against Homero Joshua Garza, principal of the entity Defendants against which the case was previously resolved. He was charged with conducting a fraudulent offering of unregistered securities and operating a Ponzi scheme with a digital bitcoin mining operation, that did not own promised computing power.

Defendants:
GAW Miners LLC, ZenMiner LLC
Homero Joshua Garza
Sanction Amount:
$9924774
Announcement Date:
2017-10-04
Violation
Offering Fraud
Key Docs
Official SEC press release
34.0638 -118.372
Jammin' Java Corp., Wayne Weaver, Shane Whittle, Stephen Wheatley, Michael Sun, Kevin Miller, Mohammed Al-Barwani, Rene Berlinger, Alexander Hunter, Thomas Hunter

Combined sanction in alleged multimillion-dollar, international pump-and-dump scheme involving the stock of the entity Defendant, a company that used trademarks of the late reggae artist Bob Marley to sell coffee products. The bulk of the sanction was assessed against UK and Canadian resident Weaver, pursuant to a decision that was affirmed on appeal.

Defendants:
Jammin' Java Corp.
Wayne Weaver, Shane Whittle, Stephen Wheatley, Michael Sun, Kevin Miller, Mohammed Al-Barwani, Rene Berlinger, Alexander Hunter, Thomas Hunter
Sanction Amount:
Approximately $66,000,000
Announcement Date:
2017-10-03
Violation
Market Manipulation
Key Docs
Official SEC press release
0 0
David Howard Welch, Marc JayBryant, John Charles Knight, Perry Douglas West, Bio-Global Resources, Inc., Diversified Equities Inc., Diversified Equities Development Inc., New Global Energy, Inc.

Alleged boiler room/cold-calling operation involving numerous individuals and entities selling securities in New Global Energy Inc., its predecessor company, Global Energy Technology Group, Inc., and other companies in unregistered transactions. Final judgment now entered as to all Defendants.

Defendants:
Bio-Global Resources, Inc., Diversified Equities Inc., Diversified Equities Development Inc., New Global Energy, Inc.
David Howard Welch, Marc JayBryant, John Charles Knight, Perry Douglas West
Sanction Amount:
6230117.82
Announcement Date:
2017-09-28
Violation
Trading and Pricing
Key Docs
Official SEC press release
42.3611 -71.2582
Alere Inc.

Respondent medical manufacturer agreed to settle charges that it committed accounting fraud through its subsidiaries, including a S. Korean subsidiary, to meet revenue targets and made improper payments to foreign officials to increase sales in certain countries.

Defendants:
Alere Inc.
Sanction Amount:
$13023885
Announcement Date:
2017-09-28
Violation
Financial Fraud
Key Docs
Official SEC press release
42.3622 -71.08
Aegerion Pharmaceuticals, Inc.

Sanction was a penalty that Defendant, a biopharmaceutical company, agreed to pay to settle fraud charges. Defendant allegedly exaggerated the number of new patients actually filling prescriptions for an expensive drug that was its sole source of revenue.

Defendants:
Aegerion Pharmaceuticals, Inc.
Sanction Amount:
$4100000
Announcement Date:
2017-09-22
Violation
Financial Fraud
Key Docs
Official SEC press release
34.0713 -118.4
Platinum Equity Advisors, LLC

The Commission found that Respondent investment adviser charged three of its private equity fund clients with about $1.8 million in undisclosed broken deal expenses, i.e., the entirety of such expenses for all of the funds' failed investments, despite the fact that there were also co-investors on the deals with connections to Respondent, to which some or all of the expenses could have been allocated.

Defendants:
Platinum Equity Advisors, LLC
Sanction Amount:
$3402132
Announcement Date:
2017-09-21
Violation
Financial Fraud
Key Docs
Official SEC press release
59.3688 18.0063
Telia Company AB

Swedish corporation formerly registered as a United States issuer was found to have entered the Uzbek telecommunications market by offering and paying at least $330 million in bribes to a shell company under the guise of payments for lobbying and consulting services that never actually occurred.

Defendants:
Telia Company AB
Sanction Amount:
$457000000
Announcement Date:
2017-09-21
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
0 0
Francisco Illarramendi

Stamford, Conn.-based fund manager perpetrated a years-long, multimillion dollar Ponzi scheme. The SEC won summary judgment against him, after a guilty plea in a parallel criminal case.

Defendants:
Francisco Illarramendi
Sanction Amount:
Approximately $26,800,000
Announcement Date:
2017-09-19
Violation
Offering Fraud
Key Docs
Official SEC press release
33.7628 -84.3865
SunTrust Investment Services

Investment services subsidiary of SunTrust Banks was charged with collecting avoidable fees from clients by improperly recommending more expensive share classes of various mutual funds when cheaper shares of the same funds were available. The Respondent agreed to pay this sanction as a penalty to settle the charges.

Defendants:
SunTrust Investment Services
Sanction Amount:
1148071.77
Announcement Date:
2017-09-14
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
James M. Merrill, Joseph H. Craft

Defendants were the president/co-owner and the CFO of "TelexFree," a pyramid scheme run out of Massachusetts that targeted Latino communities.

Defendants:
James M. Merrill, Joseph H. Craft
Sanction Amount:
$3948708
Announcement Date:
2017-09-12
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7971 -73.1399
The Leonard Vincent Group, Leonard Vincent Lombardo, Brian A. Hudlin

Defendants - a former broker, his company, and his business partner - agreed to settle allegations that they used high-pressure sales tactics on retirees and others to solicit investments in distressed real estate, and then used the money for other purposes, including Lombardo's personal expenses.

Defendants:
The Leonard Vincent Group
Leonard Vincent Lombardo, Brian A. Hudlin
Sanction Amount:
$5878729
Announcement Date:
2017-09-09
Violation
Offering Fraud
Key Docs
Official SEC press release
42.3527 -71.0584
State Street Bank and Trust Company

The Commission found that Respondent misled and/or failed to inform subscribers to its government securities trading platform "GovEx" about material information concerning the system's operation and capability. Charges settled.

Defendants:
State Street Bank and Trust Company
Sanction Amount:
$3000000
Announcement Date:
2017-09-07
Violation
Trading and Pricing
Key Docs
Official SEC press release
42.3527 -71.0584
State Street Global Markets LLC, State Street Global Advisors Funds Distributors LLC, State Street Bank and Trust Company

Respondent settled charges of fraudulent mistreatment of customers, by charging them secret markups for transition management services (to the tune of $20 million additional/improper revenue). The Commission noted its allegation that, to conceal the scheme, the markups were falsely explained to one customer who detected and asked about them.

Defendants:
State Street Global Markets LLC, State Street Global Advisors Funds Distributors LLC, State Street Bank and Trust Company
Sanction Amount:
$32300000
Announcement Date:
2017-09-07
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Caledonian Bank Ltd., Caledonian Securities Ltd., Clear Water Securities, Inc., Legacy Global Markets S.A., Verdmont Capital, S.A.

Defendants, off-shore entities, were charged with conducting unregistered sales of penny stock securities (shell issuers Swingplane Ventures, Inc., Goff Corp., Norstra Energy Inc. and Xumanii, Inc.), reaping over $75 million in illegal sales proceeds. The Caledonian entities settled, and judgment was entered on default against the other three Defendants.

Defendants:
Caledonian Bank Ltd., Caledonian Securities Ltd., Clear Water Securities, Inc., Legacy Global Markets S.A., Verdmont Capital, S.A.
Sanction Amount:
Approximately $95,600,000
Announcement Date:
2017-08-25
Violation
Offering Fraud
Key Docs
Official SEC press release
33.6507 -117.75
Gustavo A. Altuzarra, Christopher R. Chase, Vertical Recovery Management, Vertical Capital Asset Management, Vertical Fund Group

Settlement with two individual Respondents and three entities they controlled, for making unauthorized loans and using fraudulent straw purchaser transactions to conceal those loans. Allegedly, VRM and VCAM, a Commission-registered investment adviser, made the unauthorized loans from funds they managed to VFG, which were contrary to the disclosed use of proceeds in the funds’ offering materials.

Defendants:
Vertical Recovery Management, Vertical Capital Asset Management, Vertical Fund Group
Gustavo A. Altuzarra, Christopher R. Chase
Sanction Amount:
$9034957
Announcement Date:
2017-08-22
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Allen Chi

The Commission found that Respondent wrongfully recommended and facilitated the purchase of purported EB-5 investments (membership interests issued by Suncor Fontana, LLC, Suncor Hesperia, LLC, and Suncor Care Lynwood, LLC), even though he was not registered as or associated with a broker-dealer.

Defendants:
Allen Chi
Sanction Amount:
2647481.88
Announcement Date:
2017-08-21
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7519 -73.9756
Ironridge Global Partners LLC, Ironridge Global IV

Respondents agreed to settle charges that they violated the Securities Exchange Act of 1934 by failing to register as dealers when they were regularly distributing millions of shares of microcap stock. The shares were acquired by Respondent Ironridge Global IV, IGP's subsidiary, pursuant to a “liabilities for equity” or LIFE program in which microcaps were provided with funding for their liabilities in exchange for equity. The Respondents also collected fees resembling underwriting fees from microcap participants, such as such as success fees, documentation fees and break-up fees.

Defendants:
Ironridge Global Partners LLC, Ironridge Global IV
Sanction Amount:
$4400000
Announcement Date:
2017-08-21
Violation
Financial Fraud
Key Docs
Official SEC press release
40.755 -73.9718
Deerfield Management Company L.P.

Respondent settled charges that it failed to establish, maintain, and enforce policies and procedures reasonably designed to prevent the misuse of inside information, including information about confidential government decisions. Certain of its current and former analysts had allegedly traded on material, nonpublic information obtained from a political intelligence analyst.

Defendants:
Deerfield Management Company L.P.
Sanction Amount:
$4757962
Announcement Date:
2017-08-21
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7048 -74.01
Banca IMI Securities Corp.

Settlement of charges that Respondent: (1) violated the Securities Act of 1933 when it requested the issuance of and received ADRs, without possessing the required underlying foreign shares or ensuring appropriate custody thereof; and (2) failed to supervise personnel.

Defendants:
Banca IMI Securities Corp.
Sanction Amount:
35411021.64
Announcement Date:
2017-08-18
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7579 -73.9722
KPMG LLP, John Riordan

Respondent accounting firm agreed to settle charges that it failed to properly audit the financial statements of an oil and gas company, resulting in investors being misinformed about the energy company’s value. The engagement partner in charge of the audit also agreed to settle.

Defendants:
KPMG LLP
John Riordan
Sanction Amount:
$6233999
Announcement Date:
2017-08-15
Violation
Financial Fraud
Key Docs
Official SEC press release
39.6198 -104.898
Coachman Energy Partners LLC, Randall D. Kenworthy

Settled charges of misconduct by Respondent investment adviser (Coachman) and its CEO in connection with providing advisory services to four private oil and gas funds. The Commission found that the Respondents failed to adequately disclose fees and expenses methodology, and caused one of the funds to enter into a transaction with an affiliated entity without properly disclosing or obtaining investor consent to the conflicts of interest.

Defendants:
Coachman Energy Partners LLC
Randall D. Kenworthy
Sanction Amount:
$2088087
Announcement Date:
2017-08-14
Violation
Financial Fraud
Key Docs
Official SEC press release
26.8447 -80.0884
Hidalgo Mining Corp., John W. Boyer, Joshua F. McAlees

Final judgment entered on consent in case alleging that, from at least August 2009 through March 2013, Defendants raised approximately $10.35 million from about 85 investors nationwide, purportedly to fund mining operations for a silver mine located near Mexico City. However, investors were not told that 10% of their money would be used to pay sales commissions, nor that Defendants didn't have the immediate financial ability to make good on all the investor principal that they personally guaranteed.

Defendants:
Hidalgo Mining Corp.
John W. Boyer, Joshua F. McAlees
Sanction Amount:
$1214193
Announcement Date:
2017-08-11
Violation
Offering Fraud
Key Docs
Official SEC press release
33.0296 -96.7061
Sethi Petroleum, LLC, Sameer Sethi

Sanction awarded in a final judgment against Sameer Sethi, perpetrator of an oil-and-gas fraud in the sale of securities in the Sethi-North Dakota Drilling Fund-LVIII Joint Venture. Investors were told that 70% of funds would be used to develop 20 oil and gas wells in the Bakken Shale formation in North Dakota, but less than 25% was actually used as promised.

Defendants:
Sethi Petroleum, LLC
Sameer Sethi
Sanction Amount:
Approximately $4,160,000
Announcement Date:
2017-08-11
Violation
Offering Fraud
Key Docs
Official SEC press release
34.0714 -118.401
Jay Belson, Smarte Real Estate Investments, Inc., Jack Rockman, LLC, John Blackstone, LLC, Residence at St. Ives, LLC, Bellagio Place Residence, LLC

Defendant Belson and the other five Defendants, real estate development companies that he controlled, agreed to settle charges of defrauding investors in purported southern California real estate "flips." Among other things, Belson allegedly promised investors a minimum rate of return and that he and his companies would only be paid from profits, but instead used nearly $2 million on office rent, utilities and salaries.

Defendants:
Smarte Real Estate Investments, Inc., Jack Rockman, LLC, John Blackstone, LLC, Residence at St. Ives, LLC, Bellagio Place Residence, LLC
Jay Belson
Sanction Amount:
Approximately $7,525,000
Announcement Date:
2017-08-11
Violation
Offering Fraud
Key Docs
Official SEC press release
41.2896 -73.4957
Steven Hicks, Southridge Capital Management LLC, Southridge Advisors LLC

Defendants, a hedge fund manager and his investment advisory businesses, were found liable of illegally diverting investor money for use by other hedge funds that were illiquid and in need of cash.

Defendants:
Southridge Capital Management LLC, Southridge Advisors LLC
Steven Hicks
Sanction Amount:
$12864064
Announcement Date:
2017-08-11
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Louis Martin Blazer III

Consent judgment against a financial adviser Defendant charged with taking money without permission from the accounts of several professional athletes in order to invest in movie projects and make Ponzi-like payments, and subsequently lying to SEC examiners about it during an investigation.

Defendants:
Louis Martin Blazer III
Sanction Amount:
Approximately $1,950,000
Announcement Date:
2017-08-10
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Michael L. Hudson

Defendant, while employed as the assistant treasurer of Frisch's Restaurants, Inc., an Ohio-based restaurant chain, allegedly diverted payroll funds to himself. He allegedly concealed this theft by falsifying Frisch's accounting records, which tainted the company's financial statements.

Defendants:
Michael L. Hudson
Sanction Amount:
Approximately $3,900,000
Announcement Date:
2017-08-04
Violation
Financial Fraud
Key Docs
Official SEC press release
43.049 -76.1531
Cadaret Grant & Co., Inc.

Administrative proceeding in which the Commission found a series of failures by Respondent, including: (1) failure to meet best execution obligations to advisory clients in purchases of mutual fund shares; (2) an undisclosed conflict of interest in respondents’ receipt of commissions for the purchases of higher-priced mutual fund shares; and (3) failure to refund advisory fees that were prepaid by clients who terminated before the fees were fully earned.

Defendants:
Cadaret Grant & Co., Inc.
Sanction Amount:
$3048000
Announcement Date:
2017-08-01
Violation
Trading and Pricing
Key Docs
Official SEC press release
29.9377 -95.3405
Halliburton Company, Jeannot Lorenz

Halliburton settled charges that it violated the FCPA while selecting and making payments to a local company in Angola in the course of winning lucrative oilfield services contracts. Its former vice president Lorenz also agreed to settle and pay a $75,000 penalty for causing the company’s violations, circumventing internal accounting controls, and falsifying books and records.

Defendants:
Halliburton Company
Jeannot Lorenz
Sanction Amount:
$29275000
Announcement Date:
2017-07-27
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
0 0
Joey Stanton Dodson

Defendant, the founder of a collection of businesses known as Citadel Energy, consented to entry of a final judgment including this sanction. He allegedly misappropriated at least $1.7 million from investors, after misleading them as to, inter alia, his compensation arrangements, the intended use of investor proceeds, the status of an important land lease agreement, the ownership of certain assets or income streams, and prior litigation against himself.

Defendants:
Joey Stanton Dodson
Sanction Amount:
$2766428
Announcement Date:
2017-07-26
Violation
Financial Fraud
Key Docs
Official SEC press release
41.8518 -72.6962
GAW Miners LLC, ZenMiner LLC, Homero Joshua Garza

Final judgment entered against GAW Miners and ZenMiner, in case alleging that they offered investors purported shares in their digital bitcoin mining operation, without owning enough computing power for the mining they promised to conduct.

Defendants:
GAW Miners LLC, ZenMiner LLC
Homero Joshua Garza
Sanction Amount:
$12000000
Announcement Date:
2017-07-25
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Andrew I. Farmer, Charles E. Grob Jr., Baldemar Rios, Carolyn Austin

Pump-and-dump scheme involving Chimera Energy Corp., a company that purportedly developed revolutionary technology to enable environmentally friendly oil and gas production. Farmer was found to be the primary orchestrator, Grob and Rios were charged with serving as figurehead CEOs, and Austin was charged with facilitating the scheme by dumping shares in the midst of Farmer's promotional efforts.

Defendants:
Andrew I. Farmer, Charles E. Grob Jr., Baldemar Rios, Carolyn Austin
Sanction Amount:
Approximately $9,433,000
Announcement Date:
2017-07-24
Violation
Market Manipulation
Key Docs
Official SEC press release
0 0
SEC v. Yu-Cheng Lin

Default judgment for insider trading against defendant, a resident of Taiwan formerly employed by California-based technology company Ubiquiti Networks Inc. The SEC alleged that defendant initially conducted insider trading with the help of an accomplice, and then began trading in his own name after he left Ubiquiti Networks’ employ. His pattern was to use material nonpublic information to trade ahead of the company’s quarterly earnings announcements, which netted him almost $2 million in illicit gains.

Defendants:
Yu-Cheng Lin
Sanction Amount:
Approximately $7,244,000
Announcement Date:
2017-06-19
Violation
Trading and Pricing
Key Docs
Official SEC press release
36.1319 -115.16
SEC v. Ascenergy LLC and Joseph Gabaldon

Sanction resulting from consent judgment in case in which defendants allegedly engaged in a fraudulent offering of overriding royalty interests in five initial, undeveloped oil and gas wells. Beginning in 2014 or earlier, the scheme yielded approximately $5 million from approximately 90 investors worldwide. The complaint alleged that defendants made multiple, material misrepresentations about the company, the nature of the offering, and the use of investor funds.

Defendants:
Ascenergy LLC
Joseph Gabaldon
Sanction Amount:
$7,179,690
Announcement Date:
2017-06-12
Violation
Offering Fraud
Key Docs
Official SEC press release
41.8518 -72.6962
SEC v. Homero Joshua Garza, GAW Miners, LLC, and ZenMiner, LLC

Judgment by default against two bitcoin mining companies for $10 million Ponzi scheme. The court found that liability was established. The SEC alleged that defendants did not own enough computing power for the mining they promised to conduct, and paid returns to some investors from proceeds generated from other investors. Case still pending against principal of the companies, defendant Garza, at the time of writing of this summary.

Defendants:
GAW Miners, LLC and ZenMiner, LLC
Homero Joshua Garza
Sanction Amount:
$12,384,099
Announcement Date:
2017-06-05
Violation
Offering Fraud
Key Docs
Official SEC press release
34.0766 -118.391
SEC v. Marc D. Broidy and Broidy Wealth Advisors, LLC

Defendants, an investment advisory firm and its owner, fraudulently overbilled clients and stole assets from their trusts to pay for personal expenses/luxury items. More than $1.4 million in ill-gotten gains. Case resolved by settlement following conviction of defendant Broidy in a parallel criminal matter.

Defendants:
Broidy Wealth Advisors, LLC
Marc D. Broidy
Sanction Amount:
$1,719,464
Announcement Date:
2017-06-02
Violation
Trading and Pricing
Key Docs
Official SEC press release
42.3203 -71.5858
SEC v. TelexFree, Inc., TelexFree, LLC, James M. Merrill, Carlos N. Wanzeler, Steven M. Labriola, Joseph H. Craft, Sanderley Rodrigues de Vasconcelos, Santiago De La Rosa, Randy N. Crosby and Faith R. Sloan

Defendant Sanderley Rodrigues de Vasconcelos consented to judgment in which he admitted he was a promoter for TelexFree, an international pyramid scheme targeting Latino communities in the U.S. The case remained pending against the remaining defendants (top-of-the-pyramid entities, four officers, and three additional promoters) at the time of writing of this summary.

Defendants:
TelexFree, Inc., TelexFree, LLC
James M. Merrill, Carlos N. Wanzeler, Steven M. Labriola, Joseph H. Craft, Sanderley Rodrigues de Vasconcelos, Santiago De La Rosa, Randy N. Crosby and Faith R. Sloan
Sanction Amount:
Approximately $1.83 million
Announcement Date:
2017-05-25
Violation
Offering Fraud
Key Docs
Official SEC press release
41.0544 -73.5428
SEC v. Francisco Illarramendi, Highview Point Partners, LLC and Michael Kenwood Capital Management, LLC

Summary judgment granted to SEC on charges that defendant, former Connecticut-based fund manager Francisco Illarramendi, perpetrated a years-long Ponzi scheme to defraud investors, resulting in hundreds of millions of dollars in losses. The other defendants were entities owned or controlled by Illarramendi, the assets of which were placed in receivership for the benefit of victims.

Defendants:
Highview Point Partners, LLC and Michael Kenwood Capital Management, LLC
Francisco Illarramendi
Sanction Amount:
$26,844,834
Announcement Date:
2017-05-24
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Miles S. Nadal

Respondent was the former CEO of MDC Partners, a New York-based marketing company. He allegedly participated in causing the company to fail to disclose personal benefits paid on his behalf, above and beyond an annual $500,000 perquisite allowance. Such benefits included private aircraft usage, club memberships, cosmetic surgery, yacht and sports car expenses, jewelry, charitable donations, pet care, and personal travel expenses.

Defendants:
Miles S. Nadal
Sanction Amount:
$5,500,000
Announcement Date:
2017-05-11
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Carl Keith Battie

Defendant, through an assumed identity, raised nearly $9 million between 2008 and 2014 in two investment programs tied to single and multi-family real estate. The programs were falsely described as well-established, passive and/or guaranteed. However, the assets they purportedly possessed or were secured by were egregiously misrepresented - almost all were distressed - and investor funds were generally used to make Ponzi payments.

Defendants:
Carl Keith Battie
Sanction Amount:
Approximately $10 million
Announcement Date:
2017-05-11
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7605 -73.9831
Barclays Capital Inc.

Barclays agreed to settle three sets of charged violations that allegedly resulted in clients being overbilled by nearly $50 million. Specifically, the SEC found that: (1) two Barclays advisory programs charged fees to more than 2,000 clients for due diligence and monitoring services that weren’t being performed as represented; (2) Barclays collected excess mutual fund sales charges or fees from 63 brokerage clients by recommending more expensive share classes than necessary; and (3) over 22,000 other accounts paid excess fees to Barclays due to miscalculations and billing errors by the firm.

Defendants:
Barclays Capital Inc.
Sanction Amount:
$97,037,659
Announcement Date:
2017-05-10
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Iat Hong, Bo Zheng, Hung Chin

Default judgments in case in which defendants were charged with fraudulently trading on hacked nonpublic market-moving information stolen from two prominent New York-based law firms, racking up almost $3 million in illegal profits.

Defendants:
Iat Hong, Bo Zheng, Hung Chin
Sanction Amount:
$8,895,561.12
Announcement Date:
2017-05-09
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Matthew E. White, Rodney A. Zehner, Daniel J. Merandi, White Investment Groups and Equities, LLC, The Grand Empire Palace and Resort, LLC, GEPR Investments Trust No. 1, GEPR Investments, LLC, M&M Financial LLC, Mountaineer Development & Construction Group

Individual defendants were charged with fraudulently issuing $1 billion in unsecured corporate bonds out of a shell company, claiming the money would be used to fund construction of a resort complex in Georgia called the Grand Empire Palace and Resort. The bond offering was insufficient to start the project, but in the meantime the individual defendants allegedly pocketed the $5.6 million they did raise. The other defendants were affiliated corporate entities allegedly used to further the scheme.

Defendants:
White Investment Groups and Equities, LLC, The Grand Empire Palace and Resort, LLC, GEPR Investments Trust No. 1, GEPR Investments, LLC, M&M Financial LLC, Mountaineer Development & Construction Group, LLC
Matthew E. White, Rodney A. Zehner, Daniel J. Merandi
Sanction Amount:
Approximately $6.45 million
Announcement Date:
2017-05-09
Violation
Offering Fraud
Key Docs
Official SEC press release
39.9466 -74.9699
William Schantz III, Verto Capital Management

Defendants allegedly resorted to fraudulent misrepresentations to raise approximately $12.5 million to purportedly fund the purchase and sale of life settlements. The issuer, Verto Capital, was allegedly presented as a profitable although it had been unprofitable for several years. Investor funds were allegedly misappropriated for Ponzi payments and personal use (over $3.4 million in the latter category).

Defendants:
Verto Capital Management
William Schantz III
Sanction Amount:
$4,158,517
Announcement Date:
2017-05-04
Violation
Offering Fraud
Key Docs
Official SEC press release
38.9837 -77.0916
Calvert Investment Management, Inc., Calvert Investment Distributors, Inc.

Administrative proceeding brought upon findings that respondents, the former investment adviser and former distributor of the Calvert open-end mutual funds, improperly used nearly $18 million in fund assets to pay for marketing and distribution services, as well as sub-transfer agency expenses in excess of annual expense caps. Case resolved by settlement.

Defendants:
Calvert Investment Management, Inc., Calvert Investment Distributors, Inc.
Sanction Amount:
$22,614,534
Announcement Date:
2017-05-02
Violation
Financial Fraud
Key Docs
Official SEC press release
49.602 6.1015
MagnaChip Semiconductor Corporation, Margaret Hye-Ryoung Sakai

The SEC found that Respondent MagnaChip engaged in a "panoply" of accounting tricks to overstate revenues for nearly two years. The then-CFO, Sakai, allegedly directed or approved, among other things, recognition of revenue on sales of incomplete or unshipped products, and delayed booking of obsolete or aged inventory. Pressure on employees each quarter to meet revenue and gross margin targets that had been communicated to the public was described as "immense."

Defendants:
MagnaChip Semiconductor Corporation
Margaret Hye-Ryoung Sakai
Sanction Amount:
$3,135,000
Announcement Date:
2017-05-01
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7605 -73.9831
Barclays Capital Inc., Yoon Seok Lee, David Wong

Settled administrative proceeding based on charges that two former Barclays RMBS traders made false or misleading statements to customers and charged undisclosed, excessive mark-ups, for approximately $15.5 million in profits. False statements allegedly included the price at which Barclays had bought the securities; the amount of profit Barclays was making for facilitating the trades; and who owned the securities.

Defendants:
Barclays Capital Inc.
Yoon Seok Lee, David Wong
Sanction Amount:
$13,010,043
Announcement Date:
2017-05-01
Violation
Trading and Pricing
Key Docs
Official SEC press release
41.8795 -87.6347
William Blair & Company

The SEC found that the respondent advisory firm: (1) used managed mutual fund assets to pay for the distribution and marketing of fund shares outside of a Rule 12b-1 plan; and (2) failed to fully disclose that it would retain fees for providing shareholder administration services to certain funds. Respondent settled the charges.

Defendants:
William Blair & Company
Sanction Amount:
$4.5 million
Announcement Date:
2017-05-01
Violation
Financial Fraud
Key Docs
Official SEC press release
43.6178 -116.207
Serofim Muroff, Blackhawk Manager, LLC, ISR Capital, LLC, Equity Recap Account, LLC, Debra L. Riddle

Settlement of a civil action in which the SEC alleged that defendant Muroff, an Idaho resident, raised more than $140.5 million through his companies in the form of EB-5 offerings to Chinese investors, The investments were for the stated/intended purposes of acquiring and developing luxury real estate in McCall, Idaho, and investing in gold mining ventures in Idaho and Montana. However, over $5 million was allegedly not invested but rather misappropriated by Muroff. Riddle was Muroff's CFO in title and bookkeeper in truth, although she allegedly also significantly participated in and benefitted from the scheme.

Defendants:
Blackhawk Manager, LLC, ISR Capital, LLC, Equity Recap Account, LLC
Serofim Muroff, Debra L. Riddle
Sanction Amount:
$8,612,395
Announcement Date:
2017-04-28
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Michael Andre Jones

Settlement of allegations that, over roughly three years, defendant fraudulently sold more than $700,000 worth of unregistered convertible promissory notes to twenty investors in twelve states. The complaint alleged that he knowingly or recklessly made multiple fraudulent statements in the effort. He was also separately charged with defrauding two other investors by selling them restricted stock in a small unrelated biotechnology company, and then simply failing to deliver when he couldn't get the restrictions lifted (keeping the money).

Defendants:
Michael Andre Jones
Sanction Amount:
$1,496,963
Announcement Date:
2017-04-27
Violation
Offering Fraud
Key Docs
Official SEC press release
37.7891 -122.396
BlackRock Fund Advisors

The SEC found that respondent, a registered investment adviser, caused an affiliate investment company to violate the Investment Company Act. Respondent allegedly used the investment company to launch an ETF invested in Russian securities prior to when it gained the exemptive relief needed to trade (since such trades may not be the same as the net asset value of the shares).

Defendants:
BlackRock Fund Advisors
Sanction Amount:
$1.5 million
Announcement Date:
2017-04-25
Violation
Trading and Pricing
Key Docs
Official SEC press release
42.5019 -71.0685
Lionshare Ventures, LLC

Default judgment against entity for its role in a scheme to defraud investors by concealing the ownership and control of issuer Cannabiz Mobile by defendant Christopher Esposito of Topsfield, Massachusetts, in order to facilitate the sale of hundreds of millions of shares of Cannabiz stock into the public market. The purpose for the concealment was to evade SEC Rule 144, which limits securities sales by affiliates, including control persons such as Esposito.

Defendants:
Lionshare Ventures, LLC
Sanction Amount:
$1,882,413
Announcement Date:
2017-04-14
Violation
Trading and Pricing
Key Docs
Official SEC press release
37.7799 -121.974
Galena Biopharma, Inc., Mark J. Ahn

The SEC found that respondents (issuer and CEO) engaged in a scheme to mislead investors by commissioning over 100 internet publications promoting Galena that purported to be independent and objective when, in fact, they were paid promotions. Some of the publications were transmitted while Galena was preparing to offer or offering securities. Respondents also allegedly violated various provisions of the securities laws in connection with stock options it granted to/redeemed for one of secretly paid promoters.

Defendants:
Galena Biopharma, Inc.
Mark J. Ahn
Sanction Amount:
$1,544,431
Announcement Date:
2017-04-10
Violation
Offering Fraud
Key Docs
Official SEC press release
34.1699 -118.639
Manish Singh, Lavos, LLC

The SEC found that respondent Singh, through his firm Lavos, engaged in illegal touting and “gun-jumping” through their stock promoting business. The scheme allegedly involved 12 issuers, at least 10 writers, over 400 internet publications, and the distribution of emails to thousands of potential investors, with zero disclosure that the promotion was paid (and, in some cases, affirmative misrepresentations that it was not). One article was published before an issuer's registration statement became effective.

Defendants:
Lavos, LLC
Manish Singh
Sanction Amount:
$2,901,676.94
Announcement Date:
2017-04-10
Violation
Financial Fraud
Key Docs
Official SEC press release
41.875 -72.8007
Thomas Connerton, Safety Technologies LLC

Defendant Connerton allegedly defrauded investors by misleading them to invest in a purported glove manufacturing company and then diverting their money for personal use. The company was said to be developing a material to make surgical gloves better resistant, with several major glove manufacturers wanting the technology, but the SEC found that no deals were ever anywhere close to materializing, and that Connerton emptied the company's bank account to pay personal expenses.

Defendants:
Safety Technologies LLC
Thomas Connerton
Sanction Amount:
$1,892,978.88
Announcement Date:
2017-04-05
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7417 -73.9868
Credit Suisse Securities (USA) LLC, Sanford Michael Katz

Respondent Katz was an investment adviser for Credit Suisse in San Francisco, and the SEC found that he improperly invested clients in more expensive “Class A” shares of mutual funds rather than less expensive “institutional” shares for which they were eligible. The greater expense of class A shares is attributable to certain fees, which the mutual funds here allegedly paid to Credit Suisse, with a portion going to Katz.

Defendants:
Credit Suisse Securities (USA) LLC
Sanford Michael Katz
Sanction Amount:
$7,927,161
Announcement Date:
2017-04-04
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Clayton A. Cohn

Chicago-based scheme by a former marine who orchestrated a hedge fund investment scheme through his investment adviser, Marketaction Advisors, LLC, in which he raised nearly $1.8 million from investors by lying about his success as a trader, the performance of the hedge fund, his use of investor proceeds, and his personal stake in the hedge fund. In reality, he misappropriated more than $400,000 of investor funds for personal use and lost all or nearly all of the rest in trading, which he concealed in phony account statements.

Defendants:
Clayton A. Cohn
Sanction Amount:
$1,556,488.11
Announcement Date:
2017-03-30
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Mark A. Jones

Default judgment entered against defendant charged with operating a nearly $10 million Ponzi scheme in which he solicited investors to invest in an enterprise he called "The Bridge Fund." Purportedly, the enterprise provided high-yielding "bridge loans" to Jamaican businesses waiting for funding from approved commercial bank loans. However, instead of investing the money as promised, it appeared that a large portion was used to make Ponzi payments and to pay for defendant's own personal expenses.

Defendants:
Mark A. Jones
Sanction Amount:
$3,982,973.48
Announcement Date:
2017-03-29
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7347 -73.9911
Louis Capital Markets, LP

Settlement of charges that respondent willfully, unlawfully obtained millions of dollars from its customers by adding hidden markups and markdowns to their trades over roughly a four-year span. The SEC found that brokers on respondent’s cash equity desk were engaged in this practice, hiding the charges by providing false prices during periods of market volatility.

Defendants:
Louis Capital Markets, LP
Sanction Amount:
$2.5 million
Announcement Date:
2017-03-29
Violation
Trading and Pricing
Key Docs
Official SEC press release
27.2172 -82.4801
Sheldon Rose, MKJJ Consulting LLC

The SEC found that respondents created and sold 15 "blank check" companies (i.e., companies solely for purposes of merger and acquisition, with no operations and no value other than (i) their registration status with the Commission, and (ii) a particular capital structure), without disclosing to the public or the Commission the true purpose or control of the companies. Illicit proceeds calculated at over $2.7 million.

Defendants:
MKJJ Consulting LLC
Sheldon Rose
Sanction Amount:
$2,973,916.18
Announcement Date:
2017-03-23
Violation
Financial Fraud
Key Docs
Official SEC press release
34.0511 -118.254
Notis Global, Inc., f/k/a Medbox, Inc., Vincent Mehdizadeh

Mehdizadeh was the founder of Medbox, described as a leader in the marijuana industry. However, its revenues were allegedly boosted by illegal stock sales carried out by a shell company created by Mehdizadeh called New-Age Investment Consulting. Further, Medbox allegedly issued press releases headlining the phony revenues as record earnings to legitimize itself as a viable commercial operation when in fact nearly 90 percent of the company’s revenue in the first quarter of 2014 stemmed from sham transactions with New-Age.

Defendants:
Notis Global, Inc., f/k/a Medbox, Inc.
Vincent Mehdizadeh
Sanction Amount:
Approximately $12 million
Announcement Date:
2017-03-09
Violation
Financial Fraud
Key Docs
Official SEC press release
41.5862 -93.6293
Voya Financial Advisors, Inc.

Respondent, an investment adviser, allegedly failed to disclose to clients that it had two agreements with its clearing broker causing conflicts of interest. Under one of the agreements, Voya received a certain percentage of the clearing broker's revenues from mutual funds in a no-transaction-fee program that it offered, in which Voya participated. And in the other, Voya agreed to provide certain administrative services in exchange for the clearing broker sharing a certain percentage of service fees it received from mutual funds on the platform.

Defendants:
Voya Financial Advisors, Inc.
Sanction Amount:
Approximately $3 million
Announcement Date:
2017-03-08
Violation
Financial Fraud
Key Docs
Official SEC press release
32.9483 -96.8241
Leon Ali Parvizian, Arcturus Corporation, Aschere Energy LLC, Alfredo Gonzalez, AMG Energy, LLC, Robert Balunas, R. Thomas & Co., LLC

Defendant Parvizian and his two Dallas-based companies, Arcturus Corporation and Aschere Energy LLC - were found on summary judgment to have fraudulently raised approximately $22 million from at least 380 investors nationwide. They offered and sold unregistered interests in a drilling project in which they had no rights to participate or share profits. The other defendants also sold these interests, acting as unregistered broker-dealers.

Defendants:
Arcturus Corporation, Aschere Energy LLC, AMG Energy, LLC, R. Thomas & Co., LLC
Leon Ali Parvizian, Alfredo Gonzalez, Robert Balunas
Sanction Amount:
$15,650,000
Announcement Date:
2017-03-03
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Renato Rodriguez, Gutemberg Dos Santos

The SEC alleged that these two defendants were promoters who conducted a pyramid scheme in Southern California. They operated a business called Vizinova through which they allegedly secured investments from at least 100 investors, and proceeded to spend $1.4 million of investor funds for personal expenses. Investors were allegedly told at live presentations that they would earn "points" yielding a certain rate of return, typically $5,000 on an investment of $3,200, but the points were actually irredeemable and worthless.

Defendants:
Renato Rodriguez, Gutemberg Dos Santos
Sanction Amount:
$1,720,000
Announcement Date:
2017-03-02
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Andrew Arrambide, Uninvest Financial Services, Corp., RST5 Investments LLC, Parkway Real Estate LLC, Paulo Hideki Koga

Defendant Arrambide was a promoter for Tropikgadget Unipessoal LDA and Tropikgadget FZE, Portuguese companies which operated under the name "Wings Network." Wings Network was an international pyramid scheme targeting Latino communities in the U.S. The other defendants comprising this sanction announcement were relief defendants, as they received illicit proceeds from the scheme.

Defendants:
Uninvest Financial Services, Corp., RST5 Investments LLC, Parkway Real Estate LLC
Andrew Arrambide, Paulo Hideki Koga
Sanction Amount:
$7,781,754.50
Announcement Date:
2017-02-28
Violation
Offering Fraud
Key Docs
Official SEC press release
34.1662 -118.624
Harrison Schumacher, Quantum Energy LLC, Quaneco LLC

Defendants defrauded more than 300 investors nationwide in purported investments in oil-and-gas projects, raising more than $12 million in six unregistered offerings. Contrary to representations, funds that were supposed to be used for exploration and development of oil-and-gas resources were diverted to cover corporate business overhead, Schumacher's compensation, and for personal expenses.

Defendants:
Quantum Energy LLC, Quaneco LLC
Harrison Schumacher
Sanction Amount:
Approximately $13.5 million
Announcement Date:
2017-02-24
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
ELX International, Inc., Advanced Century Corp., SOT Group, Inc., Ultra International, Inc., Larissa Ettore, Clayton K. Lee, Lolita Gatchalian

The seven parties named herein were relief defendants, including four California-based shell companies and the son, girlfriend and a long-time associate of James Y. Lee, the perpetrator of a fraudulent scheme in which he recruited clients to open online brokerage accounts, including margin accounts in which he had discretionary authority to trade in options and, among other things, charged management fees of as much as 50% of monthly realized profits while falsely promising that he would share equally in losses. These relief defendants either did not appear or were found to have failed to comply with court orders, including discovery abuses. They allegedly received diverted funds from Lee so that he could avoid holding them in his own name, and were found liable for the full amount he swindled.

Defendants:
ELX International, Inc., Advanced Century Corp., SOT Group, Inc., Ultra International, Inc.
Larissa Ettore, Clayton K. Lee, Lolita Gatchalian
Sanction Amount:
Approximately $2.2 million
Announcement Date:
2017-02-17
Violation
Trading and Pricing
Key Docs
Official SEC press release
33.8394 -84.3817
Angel Oak Capital Partners, LLC, Peraza Capital & Investment, LLC, Sreeniwas Prabhu, David W. Wells

The SEC found that respondent Angel Oak operated an unregistered broker-dealer for nearly five years, and that the other respondents caused this violation. Angel Oak allegedly entered into an independent contractor agreement with Peraza Capital in late 2009 for the purpose of conducting a securities business, despite not being registered - a fact known to Peraza Capital. Prabhu was an owner of Angel Oak and Wells was an employee of an affiliate.

Defendants:
Angel Oak Capital Partners, LLC, Peraza Capital & Investment, LLC
Sreeniwas Prabhu, David W. Wells
Sanction Amount:
$3,755,000
Announcement Date:
2017-02-16
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7547 -73.9806
Morgan Stanley Smith Barney, LLC

Respondent Morgan Stanley did not adequately implement its policies and procedures to ensure that advisory clients understood the risks involved with purchasing inverse ETFs. These investments were typically unsuitable for investors planning to hold them longer than one trading session unless used as part of a trading or hedging strategy. Morgan Stanley recommended them, including for retirement accounts, but did not ensure their suitability through adequate disclosure, monitoring, etc.

Defendants:
Morgan Stanley Smith Barney, LLC
Sanction Amount:
$8,000,000
Announcement Date:
2017-02-14
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Thomas R. Stanley II

The SEC found that respondent offered and sold 120 promissory notes to 68 investors through a number of limited liability companies and corporations, raising at least $7.62 million. However, respondent allegedly misrepresented his track record in soliciting investments, and funds were not always used as represented/disclosed. Most egregiously, some funds were allegedly used to purchase a restaurant and a yacht for respondent's own use. Also, respondent allegedly commingled funds among his entities.

Defendants:
Thomas R. Stanley II
Sanction Amount:
$8,636,344
Announcement Date:
2017-02-13
Violation
Offering Fraud
Key Docs
Official SEC press release
26.3188 -80.1102
Oxford City Football Club, Inc., Thomas A. Guerriero

Defendant Guerriero was the CEO of Oxford City. They used deceptive tactics and a boiler room of salespeople to raise more than $6.5 million from primarily inexperienced investors who were misled to believe that Oxford City was a thriving conglomerate of sports teams, academic institutions, and real estate holdings, when in reality the company was losing millions of dollars each year and turning no profits from its two lower-division soccer teams in the U.K.

Defendants:
Oxford City Football Club, Inc.
Thomas A. Guerriero
Sanction Amount:
$9,194,179
Announcement Date:
2017-02-08
Violation
Offering Fraud
Key Docs
Official SEC press release
37.8234 -122.001
SLRA Inc., as successor entity to Liquid Realty Advisors III, LLC, Scott M. Landress

Administrative proceeding based on SEC findings that Landress, a private equity adviser, withdrew improper fees from two private equity funds he managed through his investment advisory firm, SLRA. Earned fees were shrinking as the net asset value of the underlying investments (real estate) fell, so Landress allegedly simply withdrew more money for himself, purportedly as payment for services provided by an affiliate. In addition to the monetary sanction, he was also barred from the securities industry.

Defendants:
SLRA Inc., as successor entity to Liquid Realty Advisors III, LLC
Scott M. Landress
Sanction Amount:
$1,250,000
Announcement Date:
2017-02-07
Violation
Financial Fraud
Key Docs
Official SEC press release
44.9337 -93.4177
Vu H. Le a/k/a Vinh H. Le and TeamVinh.com LLC

Defendants allegedly fraudulently raised more than $3 million from over 5,600 investors throughout the United States and in various foreign countries, by luring them into buying memberships in a program that they claimed was a referral network the investors could use to earn an income from multi-level marketing companies. However, the vast majority of investor proceeds were allegedly not used for any legitimate purpose, but rather misappropriated for Le's personal use.

Defendants:
TeamVinh.com LLC
Vu H. Le a/k/a Vinh H. Le
Sanction Amount:
$2,841,072
Announcement Date:
2017-01-30
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Herman Ronnie Young, Jr., d/b/a Race Cycler

Defendant operated a pyramid and Ponzi scheme through a website called Race Cycler, in which thousands of individuals nationwide and overseas collectively invested over $1.3 million from August 2014 until February 2015. Investors paid membership fees and then recruited other members in order to move up the pyramid and eventually earn reward points, which could be converted to cash. The scheme supposedly had a legitimate e-book business underlying it, but the purported products were practically valueless.

Defendants:
Herman Ronnie Young, Jr.
Sanction Amount:
Approximately $1.32 million
Announcement Date:
2017-01-27
Violation
Offering Fraud
Key Docs
Official SEC press release
42.5019 -71.0685
Cannabiz Mobile, James Gondolfe

Default judgments against defendants for their roles in a scheme to defraud investors by concealing the ownership and control of issuer Cannabiz Mobile by defendant Christopher Esposito of Topsfield, Massachusetts, in order to profit from the sale of hundreds of millions of shares of Cannabiz stock into the public market. The purpose for the concealment was to evade SEC Rule 144, which limits securities sales by affiliates, such as control persons.

Defendants:
Cannabiz Mobile
James Gondolfe
Sanction Amount:
$1,053,375
Announcement Date:
2017-01-27
Violation
Trading and Pricing
Key Docs
Official SEC press release
39.256 -94.4509
JBH Consulting Group, LLC, Brian S. Hudnall

Defendants consented to judgment on charges that they raised over $14 million in at least 18 fraudulent oil-and-gas joint ventures, using offering documents that contained untrue and misleading statements. For example, the documents allegedly misrepresented who held title to the working interests of the ventures, overstated expected well costs, misrepresented the uses of offering proceeds, and failed to disclose preferential treatment given to certain investors.

Defendants:
JBH Consulting Group, LLC
Brian S. Hudnall
Sanction Amount:
$12,240,440.11
Announcement Date:
2017-01-27
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7211 -74.0114
Citigroup Global Markets, Inc.

The SEC found that Respondent Citigroup Global Markets overcharged at least 60,000 advisory clients approximately $18 million in unauthorized fees because it failed to confirm the accuracy of billing rates entered into its computer systems in comparison to fee rates outlined in client contracts, billing histories, and other documents. The firm also allegedly failed to maintain/misplaced client contracts.

Defendants:
Citigroup Global Markets, Inc.
Sanction Amount:
$18,300,000
Announcement Date:
2017-01-26
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Raymond H. Barton, William G. Goode, Matthew Charles Briggs, Kenneth Manzo

Settlement of charges that defendants participated in a pump-and-dump scheme that acquired shares of dormant shell companies supposedly in the dietary supplement business, falsely touted news and products stemming from those companies, and dumped the shares on the market for investors to purchase at inflated prices. Manzo admitted to the charges.

Defendants:
Raymond H. Barton, William G. Goode, Matthew Charles Briggs, Kenneth Manzo
Sanction Amount:
Approximately $8.8 million
Announcement Date:
2017-01-25
Violation
Market Manipulation
Key Docs
Official SEC press release
40.7211 -74.0114
Citigroup Global Markets, Inc., Morgan Stanley Smith Barney LLC

Settlement of charges of false and misleading statements to Morgan Stanley customers about a foreign exchange trading program known as “CitiFX Alpha” from August 2010 to July 2011 (Citigroup held a 49 percent ownership interest in Morgan Stanley at the time, and its representatives allegedly participated in the pitch). The SEC found that written and verbal presentations failed to adequately disclose that investors could be placed into the program using substantially more leverage than advertised and markups would be charged on each trade.

Defendants:
Citigroup Global Markets, Inc., Morgan Stanley Smith Barney LLC
Sanction Amount:
$5,927,471.22
Announcement Date:
2017-01-24
Violation
Offering Fraud
Key Docs
Official SEC press release
27.9377 -82.4529
Overseas Shipholding Group, Inc., Myles Robert Itkin

Case based on alleged failure of OSG to record material federal income tax liabilities in its financial statements from 2000 through the second quarter of 2012. It had made its controlled foreign subsidiary jointly and severally liable for certain debt, triggering a tax code provision that any such borrowed amounts are “deemed dividends” and taxable to the parent.

Defendants:
Overseas Shipholding Group, Inc.
Myles Robert Itkin
Sanction Amount:
$5,075,000
Announcement Date:
2017-01-23
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
George N. Krinos

From January 2012 through at least November 2013, Krinos, through his various companies known as Krinos Holdings, raised approximately $1 million from at least 18 investors through the unregistered sale of common stock and secured convertible debenture notes. Throughout this period, Krinos allegedly made materially false and misleading representations to investors about the use of investor funds and Krinos Holdings' business operations and prospects. In addition, a public shell company Krinos acquired named Fordgate Acquisition Corp. failed to make required filings with the SEC.

Defendants:
George N. Krinos
Sanction Amount:
$1,436,622.39
Announcement Date:
2017-01-23
Violation
Offering Fraud
Key Docs
Official SEC press release
44.095 -93.2456
James M. Louks, FiberPoP Solutions, Inc.

Defendant Louks was alleged to have run a Prime Bank scheme through the entity defendant, in which they defrauded approximately 100 investors by promising them massive returns and exclusivity, while actually spending the investors' funds on various schemes.

Defendants:
FiberPoP Solutions, Inc.
James M. Louks
Sanction Amount:
$7,679,578.72
Announcement Date:
2017-01-19
Violation
Offering Fraud
Key Docs
Official SEC press release
33.0691 -96.8721
Orthofix International N.V., Jeffrey Hammel, CPA, Brian McCollum, Kenneth Mack, Bryan McMillan

Settlement of cases brought against medical device company Orthofix International and former executives for accounting and FCPA violations. The company improperly booked revenue in certain instances and made improper payments to doctors at government-owned hospitals in Brazil in order to increase sales.

Defendants:
Orthofix International N.V.
Jeffrey Hammel, CPA, Brian McCollum, Kenneth Mack, Bryan McMillan
Sanction Amount:
$14,530,260
Announcement Date:
2017-01-18
Violation
Accounting Violation
Key Docs
Official SEC press release
40.7632 -73.9734
MDC Partners Inc.

Respondent, a New York-based marketing company, allegedly failed to disclose additional personal benefits above and beyond an annual $500,000 perquisite allowance that the company paid on its CEO’s behalf, such as private aircraft usage, club memberships, cosmetic surgery, yacht and sports car expenses, jewelry, charitable donations, pet care, and personal travel expenses.

Defendants:
MDC Partners Inc.
Sanction Amount:
$1,500,000
Announcement Date:
2017-01-18
Violation
Financial Fraud
Key Docs
Official SEC press release
40.8733 -74.4479
Allergan, Inc.

Sanction based on Allergan's alleged failure to timely disclose negotiations with potentially friendlier merger partners in the months following a tender offer from Valeant Pharmaceuticals International and co-bidders in June 2014.

Defendants:
Allergan, Inc.
Sanction Amount:
$15,000,000
Announcement Date:
2017-01-17
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7585 -73.9702
Citadel Securities LLC

Respondent Citadel Securities settled charges that its business unit handling retail customer orders from other brokerage firms made misleading statements to them about trade pricing, by falsely suggesting that the company either took the other side of orders forwarded from the BDs' customers and provided the best observed market price, or sought to obtain that price in the marketplace.

Defendants:
Citadel Securities LLC
Sanction Amount:
$22,665,268
Announcement Date:
2017-01-13
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7547 -73.9806
Morgan Stanley Smith Barney, LLC

The SEC found that Morgan Stanley overcharged more than 149,000 advisory clients through coding and other billing system errors, evincing failures/violations in the firm's compliance and validation policies and procedures. The firm also was found to have violated the custody rule pertaining to annual surprise examinations by failing to provide its independent public accountant with an accurate or complete list of client funds and securities for examination, and failing to maintain contracts.

Defendants:
Morgan Stanley Smith Barney, LLC
Sanction Amount:
$13,000,000
Announcement Date:
2017-01-13
Violation
Trading and Pricing
Key Docs
Official SEC press release
-33.414 -70.5864
Sociedad Quimica y Minera de Chile, S.A.

Settlement of charges that, over at least a 7-year period, SQM made nearly $15 million in improper payments to Chilean political figures and others connected to them, primarily pursuant to fake documentation submitted by those individuals or their affiliates in the guise of legitimate vendors.

Defendants:
Sociedad Quimica y Minera de Chile, S.A.
Sanction Amount:
$15,000,000
Announcement Date:
2017-01-13
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
0 0
Gregg R. Mulholland

Defendant, a Canadian citizen, was a microcap promoter charged with illegally selling more than 83 million penny stock shares that he secretly obtained through at least 10 different offshore front companies, for proceeds of at least $21 million. No registration statement was filed or in effect covering the sales and no exemption from registration was available. The sales were thus in violation of the Securities Act of 1933,

Defendants:
Gregg R. Mulholland
Sanction Amount:
$24,659,355.57
Announcement Date:
2017-01-13
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7096 -74.0105
ITG Inc.

Settlement of charges that ITG facilitated transactions known as “pre-releases” of American Depository Receipts to its counterparties without owning the foreign shares or taking the necessary steps to ensure they were custodied by the counterparty on whose behalf they were being obtained. Such handling of ADRs is in violation of the Securities Act of 1933 and allegedly lasted from 2011 to 2014. ITG also allegedly failed to supervise its employees.

Defendants:
ITG Inc.
Sanction Amount:
$24,450,468.51
Announcement Date:
2017-01-12
Violation
Trading and Pricing
Key Docs
Official SEC press release
41.2663 -85.8408
Biomet, Inc.

After settling FCPA charges in 2012, the company learned of additional potential anti-bribery violations in Brazil and Mexico while implementing recommendations of its independent monitor. The SEC found that Biomet continued to interact and improperly record transactions with a known prohibited distributor in Brazil, and used a third-party customs broker to pay bribes to Mexican customs officials to facilitate the importation and smuggling of unregistered and mislabeled dental products.

Defendants:
Biomet, Inc.
Sanction Amount:
$13,022,805
Announcement Date:
2017-01-12
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
40.7121 -74.0152
The Bank of New York Mellon Corporation

The SEC found that BNY Mellon deviated from regulatory capital rules and understated its risk-weighted assets (excluding approximately $14 billion in collateralized loan obligations), thus overstating risk-based capital ratios in quarterly and annual reports from the third quarter of 2010 to the first quarter of 2014.

Defendants:
The Bank of New York Mellon Corporation
Sanction Amount:
$6,600,000
Announcement Date:
2017-01-12
Violation
Financial Fraud
Key Docs
Official SEC press release
42.8979 -78.8665
Gregory W. Gray, Jr., Archipel Capital LLC, BIM Management LP

Defendant Gray, Jr. allegedly raised nearly $5.3 million from fund investors seeking to purchase pre-IPO Twitter shares, but did not purchase enough shares before Twitter went public. Thus, the SEC found that he only managed to pay investors by tapping other unrelated funds, with the majority of that money coming from a single investor who was told he had bought the entirety of a fund supposedly investing in $5 million worth of stock in Uber, when in fact Gray had purchased no Uber stock at all.

Defendants:
Archipel Capital LLC, BIM Management LP
Gregory W. Gray, Jr.
Sanction Amount:
$8,034,355.19
Announcement Date:
2017-01-12
Violation
Offering Fraud
Key Docs
Official SEC press release
42.3886 -71.2584
Graduate Leverage, LLC, GL Capital Partners, LLC, GL Investment Services, LLC, Taft Financial Services, LLC, GL Advisor Solutions, Inc.

Judgment obtained on default against entity defendants involved in a fraudulent scheme orchestrated by Daniel Thibeault who, through one of the entities, acted as an investment adviser. Defendants solicited investments by representing that investors' money would be pooled and used to make or purchase consumer loans, then misappropriated at least $15 million of the money, concealing the diversion by reporting fictitious loans as assets of the plundered entity/fund.

Defendants:
Graduate Leverage, LLC, GL Capital Partners, LLC, GL Investment Services, LLC, Taft Financial Services, LLC, GL Advisor Solutions, Inc.
Sanction Amount:
$26,123,858
Announcement Date:
2017-01-12
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7493 -73.9759
L3 Technologies, Inc.

Settlement of charges that, in or around FY2013, respondent L3 Technologies improperly recorded $17.9 million in revenue from a contract with the U.S. Army, by creating invoices associated with unresolved claims that were not delivered when the revenue was recorded.

Defendants:
L3 Technologies, Inc.
Sanction Amount:
$1,600,000
Announcement Date:
2017-01-11
Violation
Financial Fraud
Key Docs
Official SEC press release
42.1628 -87.8799
Cadbury Limited f/k/a Cadbury plc, Mondel?z International, Inc.

The SEC found that respondent Cadbury's India subsidiary violated books and records and controls provisions of the securities laws in its retention of an agent to interact with Indian government officials regarding licenses and approvals for a chocolate factory. It appeared that license applications were quickly approved following payments of the agent's invoices, and that the company turned a blind eye to the agent's activities and misrepresented the nature of services rendered by the agent in its books and records. Respondent Mondel?z was additionally found responsible due to its subsequent acquisition of Cadbury’s stock.

Defendants:
Cadbury Limited f/k/a Cadbury plc, Mondel?z International, Inc.
Sanction Amount:
$13 million
Announcement Date:
2017-01-06
Violation
Financial Fraud
Key Docs
Official SEC press release
39.0432 -84.4625
General Cable Corporation

Part of a larger settlement also resolving a criminal probe, the Commission found that Respondent's overseas subsidiaries made improper payments to foreign government officials for a dozen years to obtain or retain business in Angola, Bangladesh, China, Egypt, Indonesia, and Thailand.

Defendants:
General Cable Corporation
Sanction Amount:
$55,281,897
Announcement Date:
2016-12-29
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
39.0432 -84.4625
General Cable Corporation

Commission found that, from 2008 to the second quarter of 2012, Respondent materially misstated its financial statements due to improper inventory accounting at its Brazil subsidiary that went undetected due to the company’s internal accounting controls failures. This settlement was reached simultaneously with a settlement resolving FCPA charges that also had been brought against Respondent.

Defendants:
General Cable Corporation
Sanction Amount:
$6500000
Announcement Date:
2016-12-29
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Jason Adam Ogden

Settlement with CEO of a pair of yogurt smoothie franchises who created an entiy named AJN Investments LLC and thereby allegedly conducted a fraudulent offering that was supposed to carry EB-5 immigration prospects, but was instead changed midstream without notice or update of the offering materials, and funds were siphoned for personal use.

Defendants:
Jason Adam Ogden
Sanction Amount:
$1,209,705
Announcement Date:
2016-12-28
Violation
Offering Fraud
Key Docs
Official SEC press release
42.35 -71.0573
Interinvest Corporation, Hans Peter Black

Default judgment against investment advisory firm and its owner for funnelling more than $17 million in client assets into four financially troubled Canadian penny stock companies in which the owner had undisclosed business and financial interests. As much as $12 million of the $17 million was lost.

Defendants:
Interinvest Corporation
Hans Peter Black
Sanction Amount:
$7,400,000
Announcement Date:
2016-12-28
Violation
Financial Fraud
Key Docs
Official SEC press release
32.0964 34.8668
Teva Pharmaceutical Industries Limited

Part of a larger settlement of more than $519 million to settle parallel civil and criminal charges of FCPA violations due to paying bribes to government officials in Russia, Ukraine and Mexico. The company allegedly made more than $214 million in illicit profits by virtue of the bribes, which led to increased market share, favorable regulatory and formulary approvals, and favorable drug purchase and prescription decisions.

Defendants:
Teva Pharmaceutical Industries Limited
Sanction Amount:
$236,101,824
Announcement Date:
2016-12-22
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
-23.5714 -46.7032
Braskem, S.A.

Part of a much larger, $957 million global settlement of charges that the petrochemical manufacturer created false books and records to conceal millions of dollars in illicit bribes paid to win or retain business. Braskem allegedly made approximately $325 million by virtue of bribes paid through intermediaries and off-book accounts to a government official at Brazil's state-controlled petroleum company, as well as to Brazilian legislators and political party officials.

Defendants:
Braskem, S.A.
Sanction Amount:
$65,000,000
Announcement Date:
2016-12-21
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
40.7601 -73.9855
Morgan Stanley & Co. LLC

Settlement of charges that Respondent used trades involving customer funds to lower its borrowing costs in violation of the SEC’s Customer Protection Rule, such that Respondent's reserve account requirements were not legitimately met and customer funds were at risk.

Defendants:
Morgan Stanley & Co. LLC
Sanction Amount:
$7,500,000
Announcement Date:
2016-12-20
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Edward F. Panos

Settlement of allegations of defrauding investors through a shell factory and promotional scheme in various microcap issuers. Defendant allegedly concealed his interest in the shells and sold them with the assistance of figurehead CEOs, while holding on to shares which he then stirred up interest in through paid promotional campaigns, before selling. He also allegedly utilized a sham offering in furtherance of the scheme.

Defendants:
Edward F. Panos
Sanction Amount:
$3,220,006
Announcement Date:
2016-12-20
Violation
Market Manipulation
Key Docs
Official SEC press release
40.7062 -74.0084
Deutsche Bank Securities Inc.

Respondent failed to route customer orders to dark pools in accordance with representations. Respondent claimed to be using ongoing data analysis to rank the dark pools best suited for customer orders when in reality its system failed to actually do this analysis.

Defendants:
Deutsche Bank Securities Inc.
Sanction Amount:
$18,500,000
Announcement Date:
2016-12-16
Violation
Trading and Pricing
Key Docs
Official SEC press release
38.6297 -90.1889
Stifel, Nicolaus & Co., Inc., David W. Noack

Defendants developed a proprietary program which they misrepresented in order to sell $200 million worth of synthetic collateralized debt obligations (CDOs) to five Wisconsin school districts, which were unsuitable investments for these investors and resulted in a complete loss (though not until after defendants collected significant fees).

Defendants:
Stifel, Nicolaus & Co., Inc.
David W. Noack
Sanction Amount:
$25,040,000
Announcement Date:
2016-12-07
Violation
Offering Fraud
Key Docs
Official SEC press release
33.6204 -117.874
Pacific Investment Management Company LLC

Settlement of charges that Respondent misled investors about the performance of its Total Return ETF and failed to accurately value certain fund securities.

Defendants:
Pacific Investment Management Company LLC
Sanction Amount:
$19,829,808
Announcement Date:
2016-12-01
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7559 -73.9756
JPMorgan Chase & Co.

Part of a larger settlement also resolving a criminal probe, the Commission found that investment bankers at JPMorgan’s subsidiary in Asia created a client referral hiring program that bypassed the firm’s normal hiring process and filled well-paying, career-building positions based on referrals from client executives and influential government officials. This practice allegedly enabled the firm to win or retain business resulting in more than $100 million in revenues during a seven-year period.

Defendants:
JPMorgan Chase & Co.
Sanction Amount:
$130,591,405
Announcement Date:
2016-11-17
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
32.0641 34.7625
EZTD Inc.

Settlement of allegations that Respondent misled investors into trading binary options through its online trading platforms, without disclosing the significant risk involved in such investments.

Defendants:
EZTD Inc.
Sanction Amount:
$1,715,858
Announcement Date:
2016-11-10
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Alexander Fedoseev, Roman Lavlinskiy

Settlement with two of numerous defendants in case involving trading ahead of hacked news releases stolen from newswire services. Sanction comprised entirely of disgorgement.

Defendants:
Alexander Fedoseev, Roman Lavlinskiy
Sanction Amount:
$1,222,694
Announcement Date:
2016-11-02
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Michael Reger, Nicholas Shermeta

Alleged manipulative scheme centered around a stock price-based bonus target arranged by scheme participants to be paid by Dakota Plains Holdings, the vehicle for the fraud. Defendants are one of the co-founders of the company and a stockbroker who appears to have participated in the inflation of its stock. A network of friends and associates allegedly choreographed extensive sales and purchases during the bonus period, such that Dakota Plains made bonus payments totaling $32 million to the scheme participants.

Defendants:
Michael Reger, Nicholas Shermeta
Sanction Amount:
$8,055,441
Announcement Date:
2016-11-01
Violation
Market Manipulation
Key Docs
Official SEC press release
32.9415 -97.1415
Southlake Resources Group, LLC, Cody M. Winters, Nicholas R. Hamilton

Settlement with Texas company and its President and Vice President for alleged oil and gas fraud raising approximately $5.2 million in sales of interests in 12 joint ventures to more than 70 investors over approximately four years. Offering documents allegedly misrepresented the use of investment proceeds, contained unsubstantiated projections, and overstated expected costs. Other alleged fraudulent conduct included undisclosed profit taking and discounts to certain investors.

Defendants:
Southlake Resources Group, LLC
Cody M. Winters, Nicholas R. Hamilton
Sanction Amount:
$5,891,412
Announcement Date:
2016-10-25
Violation
Offering Fraud
Key Docs
Official SEC press release
-23.2216 -45.8551
Embraer S.A.

Part of a larger, global settlement; the SEC found that Embraer made more than $83 million in profits as a result of approximately $12 million in bribe payments to foreign government officials in the Dominican Republic, Saudi Arabia, Mozambique and India, and concealed the illicit payments through false books and records.

Defendants:
Embraer S.A.
Sanction Amount:
$98,000,000
Announcement Date:
2016-10-24
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
29.9359 -95.5128
FMC Technologies, Inc., Jeffrey Favret, Steven K. Croft

Settlement of charges that profits of Respondent company were overstated in one of its business segments to meet internal targets. Individual Respondents are former executives who were allegedly responsible for the overstatement, which was in the amount of $800,000 pre-tax operating profits .

Defendants:
FMC Technologies, Inc.
Jeffrey Favret, Steven K. Croft
Sanction Amount:
$2,530,000
Announcement Date:
2016-10-20
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7557 -73.9874
Ernst & Young LLP, Craig R. Fronckiewicz, Sarah E. Adams

Settlement for alleged failures in audits of client Weatherford International which, separately, was also heavily sanctioned. Its earnings were allegedly inflated by $100 million to $154 million each year between 2007-2012 by fraudulently lowering year-end provisions for income taxes.

Defendants:
Ernst & Young LLP
Craig R. Fronckiewicz, Sarah E. Adams
Sanction Amount:
$11,840,107
Announcement Date:
2016-10-18
Violation
Financial Fraud
Key Docs
Official SEC press release
37.7933 -122.394
Artis Capital Management, L.P., Michael W. Harden

Commission found that investment advisory firm and its senior research analyst failed to supervise an employee who provided the firm with insider information allowing it to profit and avoid losses totaling approximately $25.3 million. The firm was further found to have failed to establish, maintain and enforce written policies and procedures reasonably designed to prevent the misuse of material nonpublic information.

Defendants:
Artis Capital Management, L.P.
Michael W. Harden
Sanction Amount:
$9,008,075
Announcement Date:
2016-10-13
Violation
Trading and Pricing
Key Docs
Official SEC press release
47.3699 8.53864
Credit Suisse AG

Respondent did not adhere to its publicly disclosed methodology for determining net new assets (NNA), a metric valued by investors in financial institutions to measure success in attracting new business.

Defendants:
Credit Suisse AG
Sanction Amount:
$90,000,000
Announcement Date:
2016-10-05
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Coleman Flaherty III, Thomas Brazil

"Pump-and-dump" scheme in stock of Massachusetts-based ticket brokering business CitySide Tickets Inc. Defendants aquired stock by virtue of false legal opinion letters, and investors were blitzed with a false and misleading promotional campaign touting CitySide Tickets as on the verge of acquiring smaller rivals and as an attractive takeover target itself. Defendants then sold their hyped shares for illicit proceeds of approximately $3 million. The company subsequently collapsed.

Defendants:
Coleman Flaherty III, Thomas Brazil
Sanction Amount:
$2,869,947
Announcement Date:
2016-10-04
Violation
Market Manipulation
Key Docs
Official SEC press release
51.4881 -0.316669
GlaxoSmithKline plc

Settlement of allegations that Respondent violated the internal controls and books-and-records provisions of the FCPA based on pay-to-prescribe schemes engaged in by its China-based subsidiaries to increase sales. The SEC found that the schemes spanned a period of years and involved the transfer of money, gifts, and other things of value to governement-affiliated health care professionals, which led to millions of dollars in increased sales for Respondent.

Defendants:
GlaxoSmithKline plc
Sanction Amount:
$20,000,000
Announcement Date:
2016-09-30
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
33.0427 -97.0084
Aegis Oil, LLC, Patrick Reagan Beason

Settlement with Texas oil company and CEO who allegedly raised $35 million in unregistered offerings from approximately 250 investors nationwide, aided by written and oral misrepresentations and omissions concerning the use of investor proceeds, business projections, and the CEO

Defendants:
Aegis Oil, LLC
Patrick Reagan Beason
Sanction Amount:
$43,684,036
Announcement Date:
2016-09-30
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Paul R. Downey, Jeffrey P. Downey, John M. Leonard

Sanction against orchestrators of fraudulent oil-and-gas investment scheme. Defendants sold nearly $5 million of fund interests to 17 investors but, among other issues, they omitted mention of a receivership involving entities with which they and the fund's general operating partner (which they owned/controlled) were involved, and the appurtenant significant risk to the fund.

Defendants:
Paul R. Downey, Jeffrey P. Downey, John M. Leonard
Sanction Amount:
$7,207,385
Announcement Date:
2016-09-30
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7638 -73.9749
Och-Ziff Capital Management Group LLC, OZ Management LP, Daniel S. Och, Joel M. Frank

Settlement of charges of FCPA violations based on the use of intermediaries, agents, and business partners to pay bribes to high-level government officials in Africa, inducing the Libyan Investment Authority sovereign wealth fund to invest in Och-Ziff managed funds. The SEC also found that other bribes were paid to secure mining rights and corruptly influence government officials in Libya, Chad, Niger, Guinea, and the Democratic Republic of the Congo.

Defendants:
Och-Ziff Capital Management Group LLC, OZ Management LP
Daniel S. Och, Joel M. Frank
Sanction Amount:
$201,218,885
Announcement Date:
2016-09-29
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
50.887 4.70718
Anheuser-Busch InBev SA/NV

Settlement of allegations that Respondent used third-party sales promoters to make improper payments to government officials in India to increase the sales and production of Anheuser-Busch InBev products in that country.

Defendants:
Anheuser-Busch InBev SA/NV
Sanction Amount:
$6,008,291
Announcement Date:
2016-09-28
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
47.1953 8.52556
Weatherford International PLC (f/k/a Weatherford International Ltd.), James Hudgins, Darryl Kitay

Settlement of charges that earnings of Respondent company were inflated by $100 million to $154 million each year between 2007-2012 by fraudulently lowering year-end provisions for income taxes, so that the company could better align its earnings results with its earlier-announced projections and analysts’ expectations.

Defendants:
Weatherford International PLC (f/k/a Weatherford International Ltd.)
James Hudgins, Darryl Kitay
Sanction Amount:
$140,364,067
Announcement Date:
2016-09-27
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Daniel Thibeault

Defendant was investment advisor to a fund called the GL Beyond Income Fund and misappropriated at least $15 million. The GL Beyond Income Fund's assets consisted primarily of individual variable rate consumer loans, with investors told that their money would be pooled and used to make or purchase consumer loans. However, in 2013 or earlier, defendant began creating and reporting fictitious loans to conceal the misappropriation.

Defendants:
Daniel Thibeault
Sanction Amount:
$15,400,403
Announcement Date:
2016-09-26
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Saleem Khan, Roshangal Chaganlal

Settlement of insider trading charges against alleged tippee and the insider tipper, who was an employee at Ross Stores. Tipper allegedly used the confidential information to illegally trade ahead of the company's public releases of sales results on more than 40 occasions between August 2009 and December 2012, and also allegedly tipped two work colleagues on numerous occasions, collectively amassing millions of dollars in illegal profits.

Defendants:
Saleem Khan, Roshangal Chaganlal
Sanction Amount:
$15,833,147
Announcement Date:
2016-09-21
Violation
Trading and Pricing
Key Docs
Official SEC press release
38.7214 -9.16178
Pharol SGPS, S.A. (f/k/a/ Portugal Telecom, SGPS, S.A.)

Settlement of allegations that Respondent, a Portuguese-based telecommunications company, failed to properly disclose the nature and extent of credit risk involved in its investments in debt instruments issued by companies of Portuguese conglomerate Grupo Espirito Santo.

Defendants:
Pharol SGPS, S.A. (f/k/a/ Portugal Telecom, SGPS, S.A.)
Sanction Amount:
$1,250,000
Announcement Date:
2016-09-13
Violation
Financial Fraud
Key Docs
Official SEC press release
34.0175 -118.494
Manuel E. Jesus, Wealthpire Inc.

Settlement of fraud allegations against self-proclaimed "stock trading whiz kid" and his stock newsletter company. Subscribers were misled with gratuitous and false representations about defendant's expertise and results, who was not trading the stocks he claimed he was and even used someone to impersonate himself on a chatboard.

Defendants:
Wealthpire Inc.
Manuel E. Jesus
Sanction Amount:
$1,483,047
Announcement Date:
2016-09-13
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7632 -73.9703
North Hills Management, LLC, Mark Evan Bloom

Fund-of-funds raised approximately $30 million from 40 to 50 investors between 2001 and 2007, and advisor misappropriated more than $13.2 million of investor funds to furnish a lavish lifestyle and invested remaining funds in a single fund from which he received undisclosed commissions, and which was itself a fraud.

Defendants:
North Hills Management, LLC
Mark Evan Bloom
Sanction Amount:
$30,563,790
Announcement Date:
2016-09-12
Violation
Offering Fraud
Key Docs
Official SEC press release
36.155 -95.9905
BOKF, NA

Indenture trustee and dissemination agent failed to inform municipal bondholders of numerous fraud signals. Offerings were managed by Christopher Brogdon of Atlanta, the debt issued to finance purchases and renovations of senior living facilities. However, Brogdon withdrew and failed to replenish money from reserve funds, and failed to file annual financial statements. Further, nursing home facilities serving as collateral for one of the offerings had been closed for years.

Defendants:
BOKF, NA
Sanction Amount:
$1,667,721
Announcement Date:
2016-09-12
Violation
Municipal Securities Fraud
Key Docs
Official SEC press release
0 0
Sergio Henrique Tanaka, Carlos Luis da Silveira Barbosa, Claudio de Oliveira Pereira Campos, Viviane Amaral Rodrigues, Wesley Brandao Rodrigues

Another settlement in the Tropikgadget FZE pyramid scheme case, this one with three company officers and two promoters.

Defendants:
Sergio Henrique Tanaka, Carlos Luis da Silveira Barbosa, Claudio de Oliveira Pereira Campos, Viviane Amaral Rodrigues, Wesley Brandao Rodrigues
Sanction Amount:
$3,019,567
Announcement Date:
2016-09-01
Violation
Offering Fraud
Key Docs
Official SEC press release
40.714 -74.0148
RBC Capital Markets, LLC

Settlement of allegations that Respondent caused materially false and misleading disclosures about its valuation analysis to be included in a proxy statement for Rural/Metro Corporation’s sale in 2011 to a private equity firm.

Defendants:
RBC Capital Markets, LLC
Sanction Amount:
$2,577,759
Announcement Date:
2016-08-31
Violation
Financial Fraud
Key Docs
Official SEC press release
51.5195 -0.181834
AstraZeneca PLC

Settlement of allegations that Respondent violated the internal controls and books-and-records provisions of the FCPA as a result of its wholly-owned subsidiaries in China and Russia making improper payments to foreign officials, as incentives to purchase or prescribe AstraZeneca pharmaceuticals, and also to get reductions or dismissals of proposed financial sanctions.

Defendants:
AstraZeneca PLC
Sanction Amount:
$5,522,000
Announcement Date:
2016-08-30
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
26.8375 -80.1047
Secured Income Reserve, Inc., Ilona A. Mandelbaum, David A. Zimmerman, Matthew H. Sage, Tamda Marketing, Inc.

Settlement of allegations supporiting numerous violations, the gist of which was that individual defendants made material misstatements and omissions in the PPM for their purpoted investment vehicle Secured Income Reserve, Inc., which never had any business operations other than raising investor funds (to the tune of $1.45 million), which were misused in various ways.

Defendants:
Secured Income Reserve, Inc., Tamda Marketing, Inc.
Ilona A. Mandelbaum, David A. Zimmerman, Matthew H. Sage
Sanction Amount:
$3,191,457
Announcement Date:
2016-08-24
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Cedric Cañas Maillard

Default judgment for insider trading against Spanish citizen and former high-ranking official at Madrid-based Banco Santander, S.A. Through his job, defendant learned of BHP Billiton's proposed acquisition of Potash Corporation, and he coordinated with a friend to purchase Potash call options directly before an announcment, and sold immediately thereafter for $278,156.97 in illicit profits.

Defendants:
Cedric Cañas Maillard
Sanction Amount:
$1,169,172
Announcement Date:
2016-08-24
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7638 -73.975
Apollo Management V, L.P., Apollo Management VI, L.P., Apollo Management VII, L.P., Apollo Commodities Management, L.P.

Settlement of charges against Respondents for allegedly misleading fund investors about future monitoring fees owed by the funds’ portfolio companies upon the sale or IPO of those companies, and about a loan agreement between the adviser’s affiliated general partner and five funds. Respondents also allegedly failed to supervise a senior partner who charged personal expenses to the funds.

Defendants:
Apollo Management V, L.P., Apollo Management VI, L.P., Apollo Management VII, L.P., Apollo Commodities Management, L.P.
Sanction Amount:
$52,754,552
Announcement Date:
2016-08-23
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Michael Andre Jones

Settlement of allegations that party promoter conducted fraudulent offering of unregistered securities, selling more than $700,000 worth of convertible promissory notes of his company Green Bash LLC to twenty investors in twelve states. Company apparently never had any revenue from operations, and defendant used proceeds from note sales for living expenses.

Defendants:
Michael Andre Jones
Sanction Amount:
$1,496,963
Announcement Date:
2016-08-22
Violation
Offering Fraud
Key Docs
Official SEC press release
29.7555 -95.3615
Key Energy Services, Inc.

Settlement of allegations that Respondent violated the internal controls and books-and-records provisions of the FCPA due to at least $229,000 in payments over a 3-year period made by its Mexican subsidiary to a contract employee at Petróleos Mexicanos (Pemex), Mexico’s state-owned oil company.

Defendants:
Key Energy Services, Inc.
Sanction Amount:
$5,000,000
Announcement Date:
2016-08-11
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
37.5475 -121.973
Luca International Group, LLC, Luca Resources Group, LLC, Luca Energy Fund, LLC, Luca Operation, LLC, Luca Barnett Shale Joint Venture, Luca To-Kalon Energy, LLC, Luca Oil, LLC, Luca I, Limited Partnership, Luca Oil II Joint Venture

Fraudulent scheme that targeted the Chinese American community and EB-5 investors in Asia in unregistered offerings of securities, representing purported interests in oil and gas drilling operations. Misrepresentations about sky-high, risk-free returns and the fincial health and performance by the drilling operations. Investor funds commingled and used for Ponzi paments.

Defendants:
Luca International Group, LLC, Luca Resources Group, LLC, Luca Energy Fund, LLC, Luca Operation, LLC, Luca Barnett Shale Joint Venture, Luca To-Kalon Energy, LLC, Luca Oil, LLC, Luca I, Limited Partnership, Luca Oil II Joint Venture
Sanction Amount:
$68,300,000
Announcement Date:
2016-07-28
Violation
Offering Fraud
Key Docs
Official SEC press release
42.3471 -71.0778
State Street Bank and Trust Company

Part of a larger, global settlement for misleading mutual funds and other custody clients by applying hidden markups to foreign currency exchange trades.

Defendants:
State Street Bank and Trust Company
Sanction Amount:
$167,400,000
Announcement Date:
2016-07-26
Violation
Financial Fraud
Key Docs
Official SEC press release
25.7929 -80.3017
LAN Airlines S.A.

Respondent was charged with FCPA violations related to $1.15 million in improper payments in the form of sham contracts that it authorized during a dispute between the airline and its union employees in Argentina.

Defendants:
LAN Airlines S.A.
Sanction Amount:
$9,437,788
Announcement Date:
2016-07-25
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
0 0
Tyson D. Williams, Stanley D. Parrish

Settlement of allegations that defendants raised over $7 million from approximately 50 investors through the fraudulent and unregistered sale of securities in ST Ventures, LLC, a Utah limitied liability company. Investors were falsely pitched a leveraged CMO strategy. Risks were misrepresented, and investor funds misappropriated for personal expenses and Ponzi payments.

Defendants:
Tyson D. Williams, Stanley D. Parrish
Sanction Amount:
$4,309,263
Announcement Date:
2016-07-20
Violation
Offering Fraud
Key Docs
Official SEC press release
43.1239 -87.937
Johnson Controls, Inc.

Settlement of allegations that Respondent used sham vendors to make improper payments of approximately $4.9 million to employees of Chinese government owned shipyards, and ship-owners and others, to obtain and retain business and personally enrich themselves.

Defendants:
Johnson Controls, Inc.
Sanction Amount:
$14,362,561
Announcement Date:
2016-07-11
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
0 0
Cheongwha "Heywood" Chang, Toni Tong Chen, HTC Consulting LLC, Arcadia Business Consulting, Inc.

Settlement with pyramid scheme promoters and associated relief defendants. Top of pyramid was Hong Kong company CKB168 Holdings Ltd., a purported internet-based child educaton venture offering exponential, risk-free returns. Scheme raised tens of millions of dollars, ensnaring nuerous investors in multiple countries

Defendants:
HTC Consulting LLC, Arcadia Business Consulting, Inc.
Cheongwha "Heywood" Chang, Toni Tong Chen
Sanction Amount:
$2,101,950
Announcement Date:
2016-07-08
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Brent Howard Chapman

Consent judgment, upon allegations that defendant acquired a position of more than 5% of Americas Energy common stock without publicly disclosing his beneficial ownership, then coordinated an aggressive, multi-million dollar campaign to promote the stock through blast e-mails and direct mailings that contained false and misleading statements. Simultaneously, defendant allegedly dumped the stock through an intricate web of international accounts and foreign domiciled financial institutions.

Defendants:
Brent Howard Chapman
Sanction Amount:
$2,800,000
Announcement Date:
2016-06-30
Violation
Market Manipulation
Key Docs
Official SEC press release
42.3555 -71.053
Lee D. Weiss, Family Endowment Partners LP, MIP Global Inc., Mosaic Enterprises Inc., Mosaic Investment Partners Inc., Weiss Capital Real Estate Group LLC

Consent judgement in resolving allegations that individual defendant, through his firm, Family Endowment Partners LP, perpetrated multiple fraudulent schemes, and engaged in a pattern of self-dealing and failing to disclose material facts to clients regarding conflicts of interest, use of investor funds, and the risks of the investments they recommended.

Defendants:
Family Endowment Partners LP, MIP Global Inc., Mosaic Enterprises Inc., Mosaic Investment Partners Inc., Weiss Capital Real Estate Group LLC
Lee D. Weiss
Sanction Amount:
$10,063,464
Announcement Date:
2016-06-29
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Malcolm Segal

Ponzi scheme: former stockbroker fraudulently sold certificates of deposit to customers upon false claims that he could provide higher rates than available to the general public. CDs were redeemed early in secret or not purchased at all, and investor money was used on personal expenses and Ponzi payments. Direct theft from customer accounts toward the end of the scheme.

Defendants:
Malcolm Segal
Sanction Amount:
$3,277,307
Announcement Date:
2016-06-24
Violation
Offering Fraud
Key Docs
Official SEC press release
40.714 -74.0148
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Merrill Lynch Professional Clearing Corporation

Respondents misused customer cash to finanance their own trading activity in violation of the Customer Protection Rule, which generally requires such funds to be deposited in a reserve account so that it is protected from creditors.

Defendants:
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Merrill Lynch Professional Clearing Corporation
Sanction Amount:
$415,000,000
Announcement Date:
2016-06-23
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.714 -74.0148
Merrill Lynch, Pierce, Fenner & Smith Incorporated

Settlement of allegations that Respondent was responsible for misleading statements in offering materials provided to retail investors for structured notes linked to a proprietary volatility index. Respondent allegedly failed to adequately disclose an additional cost of 1.5 percent of the index value each quarter known as the “execution factor.”

Defendants:
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Sanction Amount:
$10,000,000
Announcement Date:
2016-06-23
Violation
Financial Fraud
Key Docs
Official SEC press release
42.5239 -70.9619
Analogic Corporation, Lars Frost

Settlement of allegations that Danish subsidiary engaged in hundreds of sham transactions with distributors that funneled about $20 million to third parties, including individuals in Russia and apparent shell companies in Belize, the British Virgin Islands, Cyprus, and Seychelles. The individual Respondent is the former CFO and he was charged with knowingly circumventing the company’s internal accounting controls.

Defendants:
Analogic Corporation
Lars Frost
Sanction Amount:
$11,502,962
Announcement Date:
2016-06-21
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
39.7908 -75.5457
Andrew K. Proctor, Atlas JG, LLC

Settlement of allegations that defendants raised more than $22 million from at least 200 overseas investors through a fraudulent offering of purported bonds promising annual returns of 8-9%. Allegedly, less than 10% of investor funds were used to buy homebuilding subcontractor receivalbles as promised, with fundraising continuing for years after the last receivables purchase took place.

Defendants:
Atlas JG, LLC
Andrew K. Proctor
Sanction Amount:
$17,899,203
Announcement Date:
2016-06-14
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7607 -73.9731
James Caird Asset Management LLP, Timothy G. Leslie

Settlement of charges against investment adviser and co-founder thereof, for misrepresenting the strategy of a managed fund and misallocating trades between that fund and another managed fund, to the benefit of co-founder Respondent who was more heavily invested in the advantaged fund.

Defendants:
James Caird Asset Management LLP
Timothy G. Leslie
Sanction Amount:
2,521,074.00
Announcement Date:
2016-06-02
Violation
Financial Fraud
Key Docs
Official SEC press release
38.9623 -77.0853
Blackstreet Capital Management, LLC, Murry N. Gunty

Commission found that private equity investment adviser and its founder/managing member received tranaction-based compensation for brokerage services while not registered as a broker, collected unauthorized fees and made unauthorized use of fund assets, and failed to act as required in the interests of a fund. Appropriate written policies and procedures had not been adopted/implemented.

Defendants:
Blackstreet Capital Management, LLC
Murry N. Gunty
Sanction Amount:
$3,122,737
Announcement Date:
2016-06-01
Violation
Trading and Pricing
Key Docs
Official SEC press release
34.0696 -117.651
First Mortgage Corporation, Clement Ziroli Sr., Clement Ziroli Jr., Pac W. Dong, Ronald T. Vargas, Scott Lehrer, Edward Joseph Sanders

Settlement of charges against a California-based mortgage company and its six most senior executives, that they orchestrated a scheme to defraud investors in the sale of government-guaranteed RMBS. Allegedly, they repurchased loans from pools at prices applicable to delinquent loans that they themselves rendered technically delinquent, then resold them as current for an immediate, nearly risk-free profit. Meanwhile, investors were wrongly deprived of the interest payments on the repurchased loans.

Defendants:
First Mortgage Corporation
Clement Ziroli Sr., Clement Ziroli Jr., Pac W. Dong, Ronald T. Vargas, Scott Lehrer, Edward Joseph Sanders
Sanction Amount:
$12,700,000
Announcement Date:
2016-05-31
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Phil Mickelson

Voluntary disgorgement (as a relief defendant who was not charged with wrongdoing) of profits and interest allegedly realized by virtue of a tip from sports gambler, William “Billy” Walters, allegedly consisting of material nonpublic information about Dean Foods Company. Mickelson allegedly owed a gambling debt to Walters at the time of the tip, which the profits were used to repay.

Defendants:
Phil Mickelson
Sanction Amount:
$1,037,030
Announcement Date:
2016-05-19
Violation
Trading and Pricing
Key Docs
Official SEC press release
32.8889 -96.965
Charles O. Couch, Couch Oil & Gas Inc.

Settlement of oil and gas scheme. Complaint alleged that defendants sold working interests in wells pursuant to offering materials with unsubstanitated, inflated projections. Further, defendants allegedly did not transfer the working interests and retained them in their own name, and commingled and used investor funds in undisclosed ways/contrary to representations.

Defendants:
Couch Oil & Gas Inc.
Charles O. Couch
Sanction Amount:
$7,671,814
Announcement Date:
2016-05-11
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Roger S. Bliss

Defendant operated a multimillion dollar fraudulent investment scheme, telling investors he was a a day trader devoted exclusively to Apple stock, who never had a losing day. He guaranteed returns in excess of 100% and also falsely claimed to manage over $300 million. In reality, he lost money day trading and used investor funds for personal expenses and Ponzi payments.

Defendants:
Roger S. Bliss
Sanction Amount:
$13,880,909
Announcement Date:
2016-04-22
Violation
Offering Fraud
Key Docs
Official SEC press release
37.5385 -122.062
Logitech International, S.A., Michael Doktorczyk, Sherralyn Bolles

Settlement for allegedly fraudulently inflating Respondent company's fiscal year 2011 financial results to meet earnings guidance, and for committing other accounting-related violations during a five-year period. The individual Respondents were Finance executives for the company and allegedly involved in violations related to its warranty accrual accounting and failure to amortize intangibles from an earlier acquisition.

Defendants:
Logitech International, S.A.
Michael Doktorczyk, Sherralyn Bolles
Sanction Amount:
$7,575,000
Announcement Date:
2016-04-19
Violation
Financial Fraud
Key Docs
Official SEC press release
47.4587 -122.249
L&L Energy, Inc.

Sanction upon default against coal company headquartered in Seattle with all operations in China and Taiwan. Public filings misrepresented the company in numerous ways pursuant to fraudulent scheme intended to create the appearance that the company was run by a professional management team (as opposed to the reality that it was single-handedly controlled by its Chairman/CEO). For more information, see https://www.sec.gov/alj/aljdec/2016/id962bpm.pdf.

Defendants:
L&L Energy, Inc.
Sanction Amount:
$3,423,300
Announcement Date:
2016-04-13
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Iuri Rodolfo Bethancourt, Benito Chinea, Tomas Alberto Clarke Bethancourt, Joseph DeMeneses, Jose Alejandro Hurtado, Ernesto Lujan, Haydee Leticia Pabon

Sanction against personnel of broker-dealer Direct Access Partners after DAP's global markets group executed fraudulent trades for Banco de Desarrollo Económico y Social de Venezuela (BANDES) generating more than $66 million in revenue from transaction fees. A portion of this revenue was illicitly paid to the Vice President of Finance at BANDES, who authorized the fraudulent trades.

Defendants:
Iuri Rodolfo Bethancourt, Benito Chinea, Tomas Alberto Clarke Bethancourt, Joseph DeMeneses, Jose Alejandro Hurtado, Ernesto Lujan, Haydee Leticia Pabon
Sanction Amount:
$42,506,171
Announcement Date:
2016-04-08
Violation
Municipal Securities Fraud
Key Docs
Official SEC press release
36.1229 -115.169
Las Vegas Sands Corp.

Settlement of charges that Respondent violated the FCPA by failing to properly authorize or document millions of dollars in payments to a consultant facilitating business activities in China and Macao.

Defendants:
Las Vegas Sands Corp.
Sanction Amount:
$9,000,000
Announcement Date:
2016-04-07
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
41.81 -88.1077
Navistar International Corporation

Settlement of allegations that Respondent misled investors by failing to fully disclose difficulties about a truck engine, including difficulties in obtaining EPA Clean Air Act certification and in development.

Defendants:
Navistar International Corporation
Sanction Amount:
$7,500,000
Announcement Date:
2016-03-31
Violation
Financial Fraud
Key Docs
Official SEC press release
37.7947 -122.4
Burrill Capital Management, LLC, G. Steven Burrill, Victor A. Hebert, Esq., Helena C. Sen

Settlement of charges pertaining to alleged misappropriation of investor funds for personal expenses/lavish living, under the guise of "advanced" management fees. Scheme allegedly included misleading the investors in capital call letters about what the new money would be used for.

Defendants:
Burrill Capital Management, LLC
G. Steven Burrill, Victor A. Hebert, Esq., Helena C. Sen
Sanction Amount:
$6,060,000
Announcement Date:
2016-03-30
Violation
Financial Fraud
Key Docs
Official SEC press release
40.8959 -75.323
Daniel Rivera, Matthew Rivera, Robbins Lane Properties Inc., Daniel Rivera Inc., Rivera & Associates (a/k/a Strategic Wealth Partners of New Jersey)

Sanction in settlement of allegations that two brothers conducted a $2.7 million Ponzi scheme through an essentially fictious company they founded purportedly to develop and sell real estate, targeting elderly and unsophisticated investors over a 6 year period with advertised "guaranteed" income. Investments were simply misappropriated for personal use.

Defendants:
Robbins Lane Properties Inc., Daniel Rivera Inc., Rivera & Associates (a/k/a Strategic Wealth Partners of New Jersey)
Daniel Rivera, Matthew Rivera
Sanction Amount:
$2,771,501
Announcement Date:
2016-03-30
Violation
Offering Fraud
Key Docs
Official SEC press release
42.3627 -71.0839
AVEO Pharmaceuticals, Inc.

Sanction in settlement of allegations that company raised $53 million in a public stock offering while failing to disclose that the FDA had recommended an additional clinical trial for its flagship developmental drug to treat kidney cancer.

Defendants:
AVEO Pharmaceuticals, Inc.
Sanction Amount:
$4,000,000
Announcement Date:
2016-03-29
Violation
Offering Fraud
Key Docs
Official SEC press release
55.7471 37.6296
David Amaryan, Copperstone Alpha Fund, Copperstone Capital, Intertrade Pacific SA, Ocean Prime Inc., Guibor S.A., Omega 26 Investments Ltd.

Settlement with seven of numerous defendants in case involving trading ahead of hacked news releases stolen from newswire services. Sanction comprised entirely of disgorgement.

Defendants:
Copperstone Alpha Fund, Copperstone Capital, Intertrade Pacific SA, Ocean Prime Inc., Guibor S.A., Omega 26 Investments Ltd.
David Amaryan
Sanction Amount:
$17,920,000
Announcement Date:
2016-03-24
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7545 -73.976
Novartis AG

Settlement of allegations that two China-based subsidiaries gave money, gifts, and other things of value to government government-affiliated health care professionals, which led to several million dollars in sales of pharmaceutical products to China’s state health institutions.

Defendants:
Novartis AG
Sanction Amount:
$25,050,104
Announcement Date:
2016-03-23
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
0 0
Gregory G. Jones

Texas attorney found to have defrauded investors in two investment schemes, including sales of approximately $645,000 in securities in an essentially fabricated company called Aquaphex Total Water Solutions, LLC, and raising about $6 million in another venture called Edwards Exploration, and taking approximately $480,000 in undisclosed fees.

Defendants:
Gregory G. Jones
Sanction Amount:
$1,776,534
Announcement Date:
2016-03-23
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Bruce Strebinger

Consent judgment, upon allegations that defendant acquired a position of more than 5% of Americas Energy common stock without publicly disclosing his beneficial ownership, then coordinated an aggressive, multi-million dollar campaign to promote the stock through blast e-mails and direct mailings that contained false and misleading statements. Simultaneously, defendant allegedly dumped the stock through an intricate web of international accounts and foreign domiciled financial institutions.

Defendants:
Bruce Strebinger
Sanction Amount:
$1,515,640
Announcement Date:
2016-03-21
Violation
Market Manipulation
Key Docs
Official SEC press release
40.7105 -74.0156
Royal Alliance Associates, Inc., SagePoint Financial, Inc., FSC Securities Corporation

Settlement of charges against three AIG affiliates that they failed to disclose conflicts of interest in steering mutual fund clients in share classes that charged fees for marketing and distribution despite the clients being eligible to buy shares in fund classes without those additional charges, enabling the firms to collect approximately $2 million in extra fees.

Defendants:
Royal Alliance Associates, Inc., SagePoint Financial, Inc., FSC Securities Corporation
Sanction Amount:
$9,549,859
Announcement Date:
2016-03-14
Violation
Financial Fraud
Key Docs
Official SEC press release
32.8954 -117.196
Qualcomm Incorporated

Settlement of allegations that Respondent hired relatives of Chinese government officials deciding whether to select the company’s mobile technology products, amid increasing competition in the international telecommunications market.

Defendants:
Qualcomm Incorporated
Sanction Amount:
$7,500,000
Announcement Date:
2016-03-01
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
0 0
Nan Huang

Sanction following jury verdict on insider trading against one of two former data analysts for Capital One whose role was to investigate fraudulent credit card activity. Defendants allegedly used the employer's nonpublic database of activity for millions of customers and, aided by keyword searches, were able to view and analyze aggregated sales data and accurately predict the results of quarterly sales annoucements by public companies.

Defendants:
Sanction Amount:
$13,500,000
Announcement Date:
2016-02-26
Violation
Trading and Pricing
Key Docs
Official SEC press release
36.1885 -115.214
IBC Funds, LLC

Commission found that Respondent acted as an unregistered broker-dealer in connection with liquidation of microcap stock it acquired through its business model of purchasing outstanding claims from creditors of the issuers and then settling it in court-approved exchanges (which exempts the stock from registration). Respondent was also found to have improperly relied on the aforementioned exemption in several cases where the issuers presented misrepresentations or omissions to the court.

Defendants:
IBC Funds, LLC
Sanction Amount:
$2,482,850
Announcement Date:
2016-02-19
Violation
Trading and Pricing
Key Docs
Official SEC press release
52.3376 4.8702
VimpelCom Ltd.

Part of a larger, global settlement; the SEC found that VimpelCom offered and paid at least $114 million in bribes that were hidden in the company’s books and records to an Uzbek government official related to the President of Uzbekistan as the company entered the Uzbek telecommunications market and sought government-issued licenses, frequencies, channels, and number blocks. $2.5 billion in resulting revenues.

Defendants:
VimpelCom Ltd.
Sanction Amount:
$167,500,000
Announcement Date:
2016-02-18
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
42.7297 -73.8921
Scott Valente, The ELIV Group, LLC

More than $8 million raised from approximately 80 clients through false claims that investment company achieved consistent, outsized positive returns, among other misrepresentations. In reality company was sustaining consistent losses, and manager misappropriated client funds for personal use, leading to severe dilution.

Defendants:
The ELIV Group, LLC
Scott Valente
Sanction Amount:
$8,200,580
Announcement Date:
2016-02-18
Violation
Offering Fraud
Key Docs
Official SEC press release
38.5416 -121.726
Marrone Bio Innovations, Inc.

Settlement of charges that Respondent inflated its financial results by concealing various sales concessions offered to customers from finance personnel and the independent auditor, in order to meet projections it would double revenues in its first year as a public company.

Defendants:
Marrone Bio Innovations, Inc.
Sanction Amount:
$1,750,000
Announcement Date:
2016-02-17
Violation
Financial Fraud
Key Docs
Official SEC press release
42.2953 -71.2146
PTC Inc.

Respondent was charged with FCPA violations for providing non business-related travel and other improper payments to various employees of government-owned customers in China in efforts to win or retain business, with the improper payments disguised as legitimate commissions or business expenses in the company's books and records.

Defendants:
PTC Inc.
Sanction Amount:
$13,622,000
Announcement Date:
2016-02-16
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
0 0
Moazzam "Mark" Malik, American Bridge Investment Group, LLC, d/b/a Wolf Hedge LLC

Investors defrauded of over $1 million through sales of limited partnership interests in purported hedge fund, which had various names over time. Represented as a steady, high net worth vehicle with $100 million AUM, the fund's trading account never held more than $90,177 in assets, and all investor money was misappropriated.

Defendants:
American Bridge Investment Group, LLC, d/b/a Wolf Hedge LLC
Moazzam "Mark" Malik
Sanction Amount:
$17,723,345
Announcement Date:
2016-02-10
Violation
Offering Fraud
Key Docs
Official SEC press release
38.6711 -90.4005
Monsanto Company, Sara M. Brunnquell, Anthony P. Hartke, Jonathan W. Nienas

Settlement of charges that Respondents violated accounting rules and misstated Monsanto Company's earnings in connection with millions of dollars in rebates offered to retailers and distributers after generic competition had undercut prices on its flagship product. Monsanto allegedly failed to recognize all of these program costs and misstated its consolidated earnings in corporate filings during a three-year period.

Defendants:
Monsanto Company
Sara M. Brunnquell, Anthony P. Hartke, Jonathan W. Nienas
Sanction Amount:
$80,135,000
Announcement Date:
2016-02-09
Violation
Financial Fraud
Key Docs
Official SEC press release
37.5578 -122.277
SciClone Pharmaceuticals

Settlement of charges that SciClone Pharmaceuticals violated the FCPA when international subsidiaries increased sales by making improper payments to health care professionals employed at state health institutions in China.

Defendants:
SciClone Pharmaceuticals
Sanction Amount:
$12,826,000
Announcement Date:
2016-02-04
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
50.4376 30.5273
Concorde Bermuda Ltd.

Settlement with one of numerous defendants in case involving trading ahead of hacked news releases stolen from newswire services. Sanction comprised entirely of disgorgement.

Defendants:
Concorde Bermuda Ltd.
Sanction Amount:
$4,200,000
Announcement Date:
2016-02-02
Violation
Trading and Pricing
Key Docs
Official SEC press release
49.2939 8.63729
SAP SE

Respondent was charged with violations of the FCPA for paying $145,000 in bribes to a senior Panamanian government official and offer bribes to two others in exchange for lucrative sales contracts.

Defendants:
SAP SE
Sanction Amount:
$3,888,896
Announcement Date:
2016-02-01
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
37.7026 -121.973
eAdGear Holdings Limited, eAdGear, Inc., Charles S. Wang, Francis Y. Yuen, Qian Cathy Zhang, Laurata Chan

Sanction comprised of consent judgments in case alleging that defendants operated an international pyramid scheme and fraudulently raised more than $129 million. Company at top of pyramid apparently had no sources of revenue other than invesments. Investment money used in part to purchase million-dollar homes for individual defendants.

Defendants:
eAdGear Holdings Limited, eAdGear, Inc.
Charles S. Wang, Francis Y. Yuen, Qian Cathy Zhang, Laurata Chan
Sanction Amount:
$26,539,280
Announcement Date:
2016-02-01
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7605 -73.9831
Barclays Capital Inc.

Respondent violated federal securities laws in connection with the operation of its dark pool, by misrepresenting its policing efforts, overriding its surveillance tool, and misleading subscribers about data feeds.

Defendants:
Barclays Capital Inc.
Sanction Amount:
$35,000,000
Announcement Date:
2016-01-31
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7417 -73.9868
Credit Suisse Securities (USA) LLC

Settlement of allegations regarding a number of alleged misstatements and omissions about Respondent's dark pool, including that it used a feature called Alpha Scoring to characterize subscriber order flow monthly in an objective and transparent manner, but which feature was neither objective nor transparent, nor did it categorize all subscribers monthly. Respondent also allegedly failed to disclose a preferential routing system and a technology that tipped two HFT firms about order submissions.

Defendants:
Credit Suisse Securities (USA) LLC
Sanction Amount:
$44,315,154
Announcement Date:
2016-01-31
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7417 -73.9868
Credit Suisse Securities (USA) LLC

Settlement of charges that Respondent misrepresented that it would use a feature called Alpha Scoring to identify opportunistic traders in its electronic communications network, "Light Pool." However, the feature allegedly was not used in the ECN for the first year it was operational, and Respondent allegedly was not balanced or judicious in kicking out identified, suspect traders once it was turned on.

Defendants:
Credit Suisse Securities (USA) LLC
Sanction Amount:
$10,000,000
Announcement Date:
2016-01-31
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Peter Kuperman, QED Benchmark Management, L.L.C.

Settlement of charges against a Toronto hedge fund manager and his NY-based firm for avoiding disclosure of heavy losses by using a misleading mixture of hypothetical and actual returns when providing the fund’s performance history. They allegedly obtained millions from investors based on these misrepresentations, which they then poured into a single penny stock in deviation from the fund's stated strategy. And they allegedly misled investors about the performance and liquidity of the penny stock investment as well.

Defendants:
QED Benchmark Management, L.L.C.
Peter Kuperman
Sanction Amount:
$2,952,000
Announcement Date:
2016-01-28
Violation
Offering Fraud
Key Docs
Official SEC press release
33.9144 -84.3421
Ocwen Financial Corp.

Respondent allegedly inaccurately disclosed to investors that it independently valued complex mortgage assets at fair value under GAAP, but actually merely used a valuation performed by a related party to which it sold servicing rights. Alleged consequent misstatement of net income for the last three quarters of 2013 and the first quarter of 2014.

Defendants:
Ocwen Financial Corp.
Sanction Amount:
$2,000,000
Announcement Date:
2016-01-20
Violation
Financial Fraud
Key Docs
Official SEC press release
39.7445 -104.985
Equinox Fund Management, LLC

Settlement of allegations that Respondent calculated management fees contrary to the method described in registration statements also deviated from its disclosed valuation methodology for a managed futures fund. Respondent allegedly overcharged the fund $5.4 million in fees.

Defendants:
Equinox Fund Management, LLC
Sanction Amount:
$6,400,067
Announcement Date:
2016-01-19
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7149 -74.0142
Goldman, Sachs & Co.

Respondent allegedly violated Regulation SHO by failing to perform an adequate review of borrowable securities – “locates” - to support short sales and inaccurately recorded such locates in the firm’s locate log that must reflect the basis upon which Goldman Sachs has given them out.

Defendants:
Goldman, Sachs & Co.
Sanction Amount:
$15,000,000
Announcement Date:
2016-01-14
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7552 -73.9742
J.P. Morgan Securities LLC

Settlement of charges that Respondent falsely stated on its private banking website and in marketing materials that advisors are compensated “based on our clients’ performance; no one is paid on commission.” Advisors actually were paid a salary and a discretionary bonus based on a number of other factors (none of which were portfolio performance).

Defendants:
J.P. Morgan Securities LLC
Sanction Amount:
$4,000,000
Announcement Date:
2016-01-06
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
David A. Bryson, Bart C. Gutekunst, Richard Pereira

Former owners and CFO of New Stream Capital, LLC, the hub of a $750-plus million hedge fund complex focused on illiquid investments in asset-based lending, engaged in a fraudulent scheme beginning in 2008 to make changes to the funds’ capital structure without disclosing those changes to new investors in the funds, who became subordinated. This apparently appeased an old investor and avoided a redemption. The funds ultimately collapsed and new investors were left with significantly lower recoveries.

Defendants:
David A. Bryson, Bart C. Gutekunst, Richard Pereira
Sanction Amount:
$13,060,170
Announcement Date:
2015-12-28
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Bonan Huang

Settlement of charge for insider trading against one of two former data analysts for Capital One whose role was to investigate fraudulent credit card activity. Defendants allegedly used the employer's nonpublic database of activity for millions of customers and, aided by keyword searches, were able to view and analyze aggregated sales data and accurately predict the results of quarterly sales annoucements by public companies.

Defendants:
Bonan Huang
Sanction Amount:
$4,700,000
Announcement Date:
2015-12-23
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7547 -73.9806
Morgan Stanley Investment Management Inc., Sheila Huang

Settlement of charges by investment firm that one of its portfolio managers conducted unlawful prearranged trading known as “parking,” favoring certain advisory client accounts over others. In this case, the portfolio manager allegedly sold fixed income securities that needed to be liquidated to a certain broker-dealer with whom she had prearranged to repurchase the securities, for the initial sale price plus a minimal markup in order to “buyback” the positions into other accounts advised by MSIM.

Defendants:
Morgan Stanley Investment Management Inc.
Sheila Huang
Sanction Amount:
$8,982,534
Announcement Date:
2015-12-22
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7545 -73.9745
SG Americas Securities LLC, Yimin Ge

Respondents, a brokerage firm and its trader, were allegedly involved in a "parking" scheme with a portfolio manager at Morgan Stanley Investment Management Inc. The portfolio manager allegedly sold fixed income securities that needed to be liquidated out of certain accounts to Respondents, but had prearranged to repurchase them for the initial sale price plus a minimal markup in order to “buyback” the positions into other accounts advised by MSIM.

Defendants:
SG Americas Securities LLC
Yimin Ge
Sanction Amount:
$1,036,093
Announcement Date:
2015-12-22
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7559 -73.9756
JPMorgan Chase Bank, N.A., J.P. Morgan Securities LLC

Respondents failed to disclose conflicts of interest to clients, in that they preferred to invest clients in the firm’s own proprietary investment products without properly disclosing this preference, thus depriving clients of information needed to make fully informed investment decisions.

Defendants:
JPMorgan Chase Bank, N.A., J.P. Morgan Securities LLC
Sanction Amount:
$267,000,000
Announcement Date:
2015-12-18
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7633 -73.9775
Owen Li, Canarsie Capital, LLC

Sanction for a series of false statements made by hedge fund advisor to investors in Canarsie Capital Fund Master, LP, which ultimately collapsed after losing approximately $58 million. Misstatements and omissions included the fund's performance and the advisor's personal investment in a related fund. Also, fictitious trades and other false and misleading statements were reported to prime brokers to avoid margin calls. Toward the end, the fund's portfolio was traded in ways that contravened the offering memorandum.

Defendants:
Canarsie Capital, LLC
Owen Li
Sanction Amount:
$3,494,938
Announcement Date:
2015-12-16
Violation
Financial Fraud
Key Docs
Official SEC press release
40.6091 -111.935
National Note of Utah, Wayne L Palmer

Ponzi scheme in which more than 600 investors were guaranteed a 12% annual return from investments that were to be completely secured and used to make hard money loans, purchase notes, and invest in real estate. Instead, invested money was simply deposted in and transferred between bank accounts, and used for Ponzi payments.

Defendants:
National Note of Utah
Wayne L Palmer
Sanction Amount:
$68,905,443
Announcement Date:
2015-12-04
Violation
Offering Fraud
Key Docs
Official SEC press release
41.8779 -87.6332
Grant Thornton, LLP

Respondent audit company repeatedly violated professional standards while ignoring repeated red flags and fraud risks that allowed two clients to file numerous reports with the Commission that were materially false and misleading.

Defendants:
Grant Thornton, LLP
Sanction Amount:
$4,536,570
Announcement Date:
2015-12-02
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Chad P. Smanjak

"Pump-and-dump" scheme in 2008 in stock of Rudy Nutrition (founded by Rudy Ruettiger, known inspiring the motion picture “Rudy”), which generated more than $11 million in illicit profits. Defendant participated in false and misleading statements in company press releases, SEC filings, and promotional materials, and engaged in manipulative trading, and selling unregistered shares to investors.

Defendants:
Chad P. Smanjak
Sanction Amount:
$2,465,249
Announcement Date:
2015-12-01
Violation
Market Manipulation
Key Docs
Official SEC press release
51.5153 -0.0935838
Standard Bank PLC

Part of a larger global settlement, this sanction was in resolution of SEC charges that Respondent failed to disclose certain payments in connection with offering of debt by the Government of Tanzania in 2013, for which it served as lead manager. Respondent allegedly failed to disclose failed to disclose payments made by an affiliate to a Tanzanian firm that received a portion of the proceeds of the $600 million offering but performed no substantive role in the transaction.

Defendants:
Standard Bank PLC
Sanction Amount:
$4,200,000
Announcement Date:
2015-11-30
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Justin Moonyu Lee, Rebecca Taewon Lee, Thomas Edward Kent

Sanction comprised of judgments by default and on consent, against a Los Angeles lawyer, his wife, and his law partner. Based on allegations of a scheme that defrauded two dozen would-be EB-5 immigrant investors of approimately $11.5 million. The money was misappropriated.

Defendants:
Justin Moonyu Lee, Rebecca Taewon Lee, Thomas Edward Kent
Sanction Amount:
$8,829,900
Announcement Date:
2015-11-20
Violation
Offering Fraud
Key Docs
Official SEC press release
34.4204 -119.643
Efstratios

Alleged fraud in which defendants raised nearly $3.5 million purportedly to invest in Facebook and Twitter IPOs, but instead used the money for day trading and some pay-offs to investors who complained about not receiving their promised shares of stock in the social media companies.

Defendants:
Prima Capital Group, Inc.
Efstratios
Sanction Amount:
$3,075,594
Announcement Date:
2015-11-20
Violation
Offering Fraud
Key Docs
Official SEC press release
41.7663 -72.6749
Virtus Investment Advisers, Inc.

Settlement of charges that Respondent misled certain investors with advertisements containing false historical performance data about a major-exchange traded fund portfolio strategy it used, namely, the AlphaSector strategy from subadviser F-Squared Investments Inc. F-Squared was also heavily sanctioned in connection with the AlphaSector strategy.

Defendants:
Virtus Investment Advisers, Inc.
Sanction Amount:
$16,500,000
Announcement Date:
2015-11-16
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Tropikgadget FZE, Tropikgadget Unipessoal LDA, Compasswinner LDA, Happyy SGPS SA

Sanction by default judgment against two entites used in an international pyramid scheme targeting Latino communities in the U.S., as well as two relief defendants. Tropikgadget entites purportedly represented a multi-level marketing company involved in digital and mobile tech, but revenues actually came only from selling memberships to investors.

Defendants:
Tropikgadget FZE, Tropikgadget Unipessoal LDA, Compasswinner LDA, Happyy SGPS SA
Sanction Amount:
$36,128,678
Announcement Date:
2015-11-13
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7236 -74.0088
Brett A. Cooper, Global Funding Systems LLC, Dream Holdings, LLC, Fortitude Investing, LLC, Peninsula Waterfront Development, LP, REOP Group Inc.

Investors defrauded of more than $2 million through various frauds, including advance fee schemes guaranteeing extraordinary returns to investors in purported prime bank transactions and overseas debt instruments. In reality, orchestrator simply misappropriated the money for personal use.

Defendants:
Global Funding Systems LLC, Dream Holdings, LLC, Fortitude Investing, LLC, Peninsula Waterfront Development, LP, REOP Group Inc.
Brett A. Cooper
Sanction Amount:
$7,342,917
Announcement Date:
2015-11-12
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7652 -73.9797
Fenway Partners, LLC, Peter Lamm, William Gregory Smart, Timothy Mayhew, Jr., Walter Wiacek

Settlement of charges that Respondents failed to disclose conflicts of interest to a fund client and investors about several transactions involving more than $20 million in payments to former firm employees and an affiliated entity made out of fund and portfolio company assets, for consulting services that were primarily provided while the former employees were still working at Fenway Partners.

Defendants:
Fenway Partners, LLC
Peter Lamm, William Gregory Smart, Timothy Mayhew, Jr., Walter Wiacek
Sanction Amount:
10,241,471.10
Announcement Date:
2015-11-03
Violation
Financial Fraud
Key Docs
Official SEC press release
36.1436 -115.29
Kevin C. Brown, George P. Brown, Summit Trust Company, Trust Counselors Network, Inc., Brown Investment Advisors, Inc., Rampart Capital Management, LLC, Rampart Fund LP, Wealth Management Organization, LLC, Hoddinott Farm Development, LLC

Sanction in settlement of allegations that, over the course of more than a decade, two Pennsylvania investment advisors orchestrated offering frauds through various entities, raising over $50 million from hundreds of investors. Strategies/business operations were misrepresented, funds misappropriated, and losses concealed, including by Ponzi paments.

Defendants:
Summit Trust Company, Trust Counselors Network, Inc., Brown Investment Advisors, Inc., Rampart Capital Management, LLC, Rampart Fund LP, Wealth Management Organization, LLC, Hoddinott Farm Development, LLC
Kevin C. Brown, George P. Brown
Sanction Amount:
$45,836,000
Announcement Date:
2015-10-27
Violation
Offering Fraud
Key Docs
Official SEC press release
30.2941 -86.0253
The St. Joe Company, Wm. Britton Greene, William S. McCalmont, Janna L. Connolly, J. Brian Salter, Phillip B. Jones

Settlement with an NYSE-listed real estate developer/landowner company, its former top executives, and two former accounting department directors, of charges of improper accounting regarding the declining value of the company’s residential real estate developments during the financial crisis. This misconduct allegedly resulted in materially overstated earnings and assets in 2009 and 2010.

Defendants:
The St. Joe Company
Wm. Britton Greene, William S. McCalmont, Janna L. Connolly, J. Brian Salter, Phillip B. Jones
Sanction Amount:
$3,811,064
Announcement Date:
2015-10-27
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Vladimir Eydelman

Settlement with stockbroker for his role in insider trading scheme garnering $5.6 million in illicit profits. In meetings at Grand Central Terminal, a middleman passed him nonpublic information about acquisitions originating from a clerk at a big law firm on post-it notes or napkins that the middleman then chewed up and ate. The stockbroker subsequently traded on the information for the benefit of himself, his cohorts, and others.

Defendants:
Vladimir Eydelman
Sanction Amount:
$2,473,314
Announcement Date:
2015-10-23
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Premiere Power, LLC, Jerry Jankovic

Part of litigation involving Sandra Dyche, this saction was levied by default judgment against the energy company that served as the instrument of the alleged fraud, as well as its Chairman. Case involved diversion of $1 million purportedly raised for the company, but used instead to cover costs of an unrelated lawsuit.

Defendants:
Premiere Power, LLC
Jerry Jankovic
Sanction Amount:
$2,887,523
Announcement Date:
2015-10-21
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Michael Donnelly

$1.99 million disgorgement plus prejudgment interest, against former president of Wilmington, Delaware-based Coastal Investment Advisors Inc. who took funds from elderly and unsophisticated investors and used it for personal expenses instead of investing it. False account statements, trade confirmations, and other untrue information used in concealment.

Defendants:
Michael Donnelly
Sanction Amount:
$2,355,723
Announcement Date:
2015-10-19
Violation
Offering Fraud
Key Docs
Official SEC press release
40.756 -73.9741
UBS Willow Management L.L.C., UBS Fund Advisor L.L.C.

Settlement of charges arising from Respondents' alleged roles in failing to disclose a change in investment strategy by a closed-end fund they advised. Specifically, the UBS Willow Fund LLC was marketed as focused on distressed debt, and did so for eight years. Until one day in 2008 when the firm suddenly and with no notice purchased large quantities of credit default swaps (a polar opposite strategy from the previous) (and one that went poorly, with the fund liquidating in 2012).

Defendants:
UBS Willow Management L.L.C., UBS Fund Advisor L.L.C.
Sanction Amount:
$17,500,167
Announcement Date:
2015-10-16
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7559 -73.9756
J.P. Morgan Investment Management Inc.

Settlement of allegations of ten violations of Rule 105 of federal securities laws, which prohibits short selling an equity security during a restricted period in advance of a public offering and then purchasing the security in the offering. Alleged profits of $662,763.

Defendants:
J.P. Morgan Investment Management Inc.
Sanction Amount:
$1,084,210
Announcement Date:
2015-10-14
Violation
Market Manipulation
Key Docs
Official SEC press release
0 0
Jacob Keith Cooper

Sanction against investment advisor Respondent for looting a number of funds. Through a firm he co-founded named Total Wealth Management, LLC., Respondent had control of the funds and arranged for them to pay him revenue sharing and consulting fees which were found to be illegitimate and not fairly disclosed. For more information, see https://www.sec.gov/alj/aljdec/2015/id860bpm.pdf.

Defendants:
Jacob Keith Cooper
Sanction Amount:
$2,595,993
Announcement Date:
2015-10-13
Violation
Financial Fraud
Key Docs
Official SEC press release
47.3719 8.53818
UBS AG

Settlement of charges against Respondent that it made false or misleading statements and omissions in offering materials provided to U.S. investors in structured notes linked to a proprietary, index-based foreign exchange trading strategy. Respondent allegedly falsely stated that the strategy relied on a “transparent” and “systematic” approach of using “market prices” to calculate the financial instruments underlying the index, when undisclosed hedging trades by UBS reduced the index price by about five percent.

Defendants:
UBS AG
Sanction Amount:
$19,500,000
Announcement Date:
2015-10-13
Violation
Offering Fraud
Key Docs
Official SEC press release
38.935 -77.0729
Garfield M. Taylor, Jeffrey A. King, Garfield Taylor, Inc., Gibraltar Asset Management Group, LLC, The King Group, LLC

Part of a larger litigation/enforcement, concerning a Ponzi scheme that defrauded more than $27 million from approximately 130 investors from 2005 to 2010. Promissory note investments were misrepresented as low risk/high return, whereas orchestrators actually engaged in very high risk options trading (and lost).

Defendants:
Garfield Taylor, Inc., Gibraltar Asset Management Group, LLC, The King Group, LLC
Garfield M. Taylor, Jeffrey A. King
Sanction Amount:
$57,082,331
Announcement Date:
2015-10-08
Violation
Offering Fraud
Key Docs
Official SEC press release
40.705 -74.0081
Briargate Trading, LLC, Eric Oscher

Settlement of allegations that Respondents, a proprietary trading firm and one of its co-founders, engaged in the manipulative trading tactic known as “spoofing.” Under this tactic, sham orders are placed with the intent of creating an appearance of interest in one side of the market, while the spoofer works the other side.

Defendants:
Briargate Trading, LLC
Eric Oscher
Sanction Amount:
$1,062,842
Announcement Date:
2015-10-08
Violation
Market Manipulation
Key Docs
Official SEC press release
40.7579 -73.9722
Blackstone Management Partners L.L.C., Blackstone Management Partners III L.L.C., Blackstone Management Partners IV L.L.C.

Settlement of charges against three private equity fund advisors that they failed to fully inform investors about benefits obtained from accelerated monitoring fees and discounts on legal fees.

Defendants:
Blackstone Management Partners L.L.C., Blackstone Management Partners III L.L.C., Blackstone Management Partners IV L.L.C.
Sanction Amount:
$38,911,756
Announcement Date:
2015-10-07
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7579 -73.9722
Bristol-Myers Squibb Company

Settlement of charges that Respondent's majority-owned joint venture in China made cash payments and provided other benefits to health care providers at state-owned and state-controlled hospitals in exchange for prescription sales, leading to profits in excess of $11 million.

Defendants:
Bristol-Myers Squibb Company
Sanction Amount:
$14,692,000
Announcement Date:
2015-10-05
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
19.2919 -81.3771
Home Loan Servicing Solutions Ltd.

Settlement of allegations of material misstatements about Respondent's handling of related party transactions and the value of its primary asset and for having inadequate internal accounting controls

Defendants:
Home Loan Servicing Solutions Ltd.
Sanction Amount:
$1,500,000
Announcement Date:
2015-10-05
Violation
Financial Fraud
Key Docs
Official SEC press release
46.8169 -71.2161
Jean-François Amyot, Spencer Pharmaceutical Inc., IAB Media Inc., Hilbroy Advisory Inc.

"Pump-and-dump" scheme in 2010 and 2011 involving stock of defendant Spencer Pharmaceuticals, which had addresses in both Boston and Canada. The individual defendant controlled that and the other two defendant companies and was the orchestrator of the scheme, in which false and misleading press releases were disseminated and stock improperly transferred to evade registration requirements. In excess of $5 million illicit proceeds.

Defendants:
Spencer Pharmaceutical Inc., IAB Media Inc., Hilbroy Advisory Inc.
Jean-François Amyot
Sanction Amount:
$7,084,764
Announcement Date:
2015-10-01
Violation
Market Manipulation
Key Docs
Official SEC press release
31.2186 121.432
Focus Media Holding Limited, Jason Jiang

Settlement of charges of inaccurate disclosures about advertising company’s partial sale of a subsidiary to insiders, including the individual Respondent. The sale, which occurred before a third party purchased the subsidiary at a significantly higher price, yielded enormous profits to the insiders.

Defendants:
Focus Media Holding Limited
Jason Jiang
Sanction Amount:
$55,627,865
Announcement Date:
2015-09-30
Violation
Financial Fraud
Key Docs
Official SEC press release
35.6832 139.766
Hitachi Ltd.

Settlement of allegations that Hitachi sold a 25-percent stake in a South African subsidiary to a company serving as a front for the African National Congress (ANC), permitting the ANC to share in profits from power station contracts that it awarded. Hitachi was ultimately awarded two such contracts and paid the ANC's front company approximately $5 million in "dividends" and an additional $1 million in "success fees" that were inaccurately booked.

Defendants:
Hitachi Ltd.
Sanction Amount:
$19,000,000
Announcement Date:
2015-09-28
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
35.8803 -106.297
Trinity Capital Corporation, Los Alamos National Bank, William Enloe, Daniel Bartholomew, Karl Hjelvik

Settlement of accounting fraud charges against company and its wholly-owned bank subsidiary, and several executives. The case involved alleged the case that involves fraudulent manipulation of the company’s financial results and failure to implement sufficient internal accounting controls over loan accounting, motivated partly by the bank’s desire to be released from a formal supervisory agreement with its regulator.

Defendants:
Trinity Capital Corporation, Los Alamos National Bank
William Enloe, Daniel Bartholomew, Karl Hjelvik
Sanction Amount:
$1,750,000
Announcement Date:
2015-09-28
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
iShopNoMarkup.com, Inc., Anthony Knight

Sanction ordered against former Chairman of Long Island-based internet startup, for selling unregistered securities in a scheme that defrauded over 350 investors of approximately 2.3 million. Offering memoranda and other documents were distributed with material misrepresentions about business operations.

Defendants:
iShopNoMarkup.com, Inc.
Anthony Knight
Sanction Amount:
$5,130,000
Announcement Date:
2015-09-25
Violation
Offering Fraud
Key Docs
Official SEC press release
40.1371 -75.4752
William B. Fretz, Jr., John P. Freeman, Covenant Capital Management Partners, L.P., Covenant Partners, L.P.

Settlement of allegations of fraud in sale of fund partnership interests to family and friends, with at least $1.6 million in investment funds misappropriated for managers' personal expenses and to support a separate, failing business. Some of that amount was allegedly taken in the form of performance fees that the managers paid themselves but had not earned.

Defendants:
Covenant Capital Management Partners, L.P., Covenant Partners, L.P.
William B. Fretz, Jr., John P. Freeman
Sanction Amount:
$6,830,510
Announcement Date:
2015-09-23
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7629 -73.979
First Eagle Investment Management, LLC, FEF Distributors, LLC

Commision found that affiliated Respondents unlawfully caused the funds to pay nearly $25 million for distribution-related services, rather than making the payments out of the Respondents’ own assets as stated in the funds’ prospectus disclosures , and inaccurately reported to the funds’ boards how these payments were made.

Defendants:
First Eagle Investment Management, LLC, FEF Distributors, LLC
Sanction Amount:
39,747,879.75
Announcement Date:
2015-09-21
Violation
Financial Fraud
Key Docs
Official SEC press release
38.8014 -77.5103
8000 Inc.

Company's common stock was manipulated through dissemination of financial reports and press releases falsely claiming millions of dollars in capital financing and revenues. Volume of trading rose by 93% and stock price went from less than $0.01 per share to $0.42 per share. Executives and other participants in the scheme then sold or facilitated the sale of stock (which should have been restricted).

Defendants:
8000 Inc.
Sanction Amount:
$6,525,000
Announcement Date:
2015-09-16
Violation
Market Manipulation
Key Docs
Official SEC press release
0 0
Pawel P. Dynkowski

Default judgment for market manipulation schemes netting more than $6.4 million. Defendant would agree to sell large blocks of penny stock with the issuers in exchange for a portion of the proceeds. The shares were put in nominee accounts that defendant controlled, whereupon he artificially inflated the market price through wash sales, matched orders and other manipulative trading, often timed to coincide with false or misleading press releases. He would then sell his shares.

Defendants:
Pawel P. Dynkowski
Sanction Amount:
$2,585,672
Announcement Date:
2015-09-15
Violation
Market Manipulation
Key Docs
Official SEC press release
50.4267 30.5438
Jaspen Capital Partners Limited, Andriy Supranonok

Settlement with two of numerous defendants in case involving trading ahead of hacked news releases stolen from newswire services. Sanction comprised entirely of disgorgement. Majority of profits made from buying and selling contracts-for-differences.

Defendants:
Jaspen Capital Partners Limited
Andriy Supranonok
Sanction Amount:
$30,000,000
Announcement Date:
2015-09-14
Violation
Trading and Pricing
Key Docs
Official SEC press release
41.8851 -87.6232
BDO USA, LLP

Respondent audit firm dismissed red flags and issued false and misleading unqualified audit opinions about the financial statements of staffing services company General Employment Enterprises. Apparent asset overstatement of $2.3 million, representing approximately half the company's assets.

Defendants:
BDO USA, LLP
Sanction Amount:
$2,112,000
Announcement Date:
2015-09-09
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7631 -73.9835
Bankrate Inc., Hyunjin Lerner

Settlement of allegations that the revenues of defendant company were fabricated and booking certain expenses avoided in order to meet analyst estimates for the key financial metrics of adjusted earnings per share and adjusted EBITDA. Second quarter 2012 net income was overstated. Individual was the vice president of finance and allegedly complicit; his portion of this sanction was $180,045.

Defendants:
Bankrate Inc.
Hyunjin Lerner
Sanction Amount:
$15,180,045
Announcement Date:
2015-09-08
Violation
Financial Fraud
Key Docs
Official SEC press release
47.6133 -122.198
Chris Yoo, Summit Asset Strategies Investment Management, Summit Asset Strategies Wealth Management

Settlement of fraud charges against investment advisor and his two firms arising from alleged excessive withdrawal of fees based on inflated investment values, as well as a failure to disclose significant referral fees.

Defendants:
Summit Asset Strategies Investment Management, Summit Asset Strategies Wealth Management
Chris Yoo
Sanction Amount:
$1,332,274
Announcement Date:
2015-09-04
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Eric Aronson, Fredric Aaron, Vincent Buonauro

Ponzi scheme centered around a company called PermaPave Industries, which raised more than $26 million from over 140 investors through promissory notes and "use of funds" agreements. Contrary to representations, there was little demand for the company's product and defendants used investment funds for Ponzi payments and lavish lifestyles.

Defendants:
Eric Aronson, Fredric Aaron, Vincent Buonauro
Sanction Amount:
$34,340,807
Announcement Date:
2015-09-02
Violation
Offering Fraud
Key Docs
Official SEC press release
39.9574 -75.1817
Taberna Capital Management, LLC, Michael Fralin, Raphael Licht

Settlement of allegations that Respondents, CDO managers, did not tell clients they were retaining payments known as “exchange fees” in connection with restructuring transactions. The CDOs' governing documents did not permit this fee retention, which created conflicts of interest and allegedly was not disclosed in company reports, and in fact was obscured by improper labeling.

Defendants:
Taberna Capital Management, LLC
Michael Fralin, Raphael Licht
Sanction Amount:
$21,675,000
Announcement Date:
2015-09-02
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7211 -74.0114
Citigroup Global Markets, Inc.

Settlement of charges that Respondent failed to enforce policies and procedures to prevent and detect securities transactions that could involve the misuse of material, nonpublic information. Respondent was also found to have failed to adopt and implement policies and procedures to prevent and detect principal transactions conducted by an affiliate.

Defendants:
Citigroup Global Markets, Inc.
Sanction Amount:
$15,000,000
Announcement Date:
2015-08-19
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7121 -74.0152
The Bank of New York Mellon Corporation

Settlement of charges that Respondent violated the FCPA by providing valuable student internships to family members of foreign government officials affiliated with a Middle Eastern sovereign wealth fund.

Defendants:
The Bank of New York Mellon Corporation
Sanction Amount:
$14,800,000
Announcement Date:
2015-08-18
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
27.3363 -82.5323
EnviraTrends, Inc., Russell Haraburda

Sanction from settled civil action, defendants allegedly raised over $2.3 million in approximately five years from EnviraTrends, Inc. stock sales to over 100 investors. In so doing, they made numerous oral and written misrepresentations, including in public filings, regarding the issuer's operations and finances, and misappropriated money for personal expenses.

Defendants:
EnviraTrends, Inc.
Russell Haraburda
Sanction Amount:
$2,436,427
Announcement Date:
2015-08-17
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7593 -73.972
Citigroup Alternative Investments LLC, Citigroup Global Markets Inc.

Settlement of allegations that Respondents made material misstatements and omissions, including in written materials, in the offer and sale of two now-defunct hedge funds by claiming they were safe, low-risk, and suitable for traditional bond investors, while in reality the investments bore significant risk, and at times were in dire condition.

Defendants:
Citigroup Alternative Investments LLC, Citigroup Global Markets Inc.
Sanction Amount:
$179,562,328
Announcement Date:
2015-08-17
Violation
Offering Fraud
Key Docs
Official SEC press release
38.6044 -90.4462
Edward D. Jones & Co., L.P.

Commission found that Respondent, a financial services firm, forced retail customers to pay $4.6 million more than they should have for municipal bonds it underwrote by not selling the issuances at the required initial offering price over a three-year period.

Defendants:
Edward D. Jones & Co., L.P.
Sanction Amount:
$20,194,401
Announcement Date:
2015-08-13
Violation
Municipal Securities Fraud
Key Docs
Official SEC press release
39.6849 -76.1778
Colonial Tidewater Realty Income Partners, LLC, James R. Glover, Sherman T. Hill

Settlement of charges that defendants defrauded approximately 125 clients, including family, friends and fellow church members, by enticing them to invest in a real estate company by means of false and misleading statements about its investments, value and financial condition. Clients allegedly also were not informed about conflicts of interest, nor about hundreds of thousands of dollars that were misappropriated.

Defendants:
Colonial Tidewater Realty Income Partners, LLC
James R. Glover, Sherman T. Hill
Sanction Amount:
$2,748,491
Announcement Date:
2015-08-13
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7096 -74.0105
ITG Inc., AlterNet Securities, Inc.

Settlement of charges that affiliated Respondents operated a secret trading desk called "Project Omega" and misused the confidential trading information of dark pool subscribers, despite representations that they were an "agency only" broker with no conflicting interests with customers.

Defendants:
ITG Inc., AlterNet Securities, Inc.
Sanction Amount:
$20,337,836
Announcement Date:
2015-08-12
Violation
Trading and Pricing
Key Docs
Official SEC press release
34.0168 -118.501
Guggenheim Partners Investment Management, LLC

Settlement of charges that Respondent failed to disclose a $50 million loan that one of its senior executives received from an advisory client, and billed a client for asset management fees on non-managed assets. The latter was found to be inadvertant.

Defendants:
Guggenheim Partners Investment Management, LLC
Sanction Amount:
20,000,000.00
Announcement Date:
2015-08-10
Violation
Financial Fraud
Key Docs
Official SEC press release
33.4312 -111.939
ABS Manager, LLC, George Charles Cody Price

Consent judgment, upon allegations that defendants defrauded investors through material misrepresentations and ommissions regarding the risks of investing in three investment funds they managed, the rates of return, assets under management, and management's background. Complaint approximated $18.8 million raised from 35 investors.

Defendants:
ABS Manager, LLC
George Charles Cody Price
Sanction Amount:
$1,237,649
Announcement Date:
2015-07-30
Violation
Offering Fraud
Key Docs
Official SEC press release
42.1048 -87.8226
Mead Johnson Nutrition Company

Settlement of charges that Respondent's Chinese subsidiary made improper payments to health care professionals at government-owned hospitals to recommend the company’s infant formula to patients who were new or expectant mothers.

Defendants:
Mead Johnson Nutrition Company
Sanction Amount:
$12,030,000
Announcement Date:
2015-07-28
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
0 0
Ming Zhao, Liping Zhu

Default judgment against former Chairman and CEO of Puda Coal, Inc. for a massive fraud perpetrated on its public shareholders, by effectively stealing and selling its operating subsidiary. The company at one time held an indirect 90% ownership stake in Shanxi Puda Coal Group Co., Ltd. but Zhao, with Zhu's knowledge and complicity, transferred the entire stake to himself without shareholder or Board approval . This and related transfers were not disclosed in filings or in materials for two offerings raising $116 million.

Defendants:
Ming Zhao, Liping Zhu
Sanction Amount:
$250,945,460
Announcement Date:
2015-07-24
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Frank Tamayo

Settlement of insider trading charge against a "middleman" who had a cooperation ageement. Sanction represents disgorgement only (this defendant's portion of a total of $5.6 million illicit profits realized). The defendant passed nonpublic information about acquisitions from his friend - a clerk at a big law firm - to his stockbroker in meetings at Grand Central Terminal. Info was conveyed by on post-it notes or napkins that defendant subsequently chewed up and ate.

Defendants:
Frank Tamayo
Sanction Amount:
$1,056,969
Announcement Date:
2015-07-13
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Neal Goyal

Ponzi scheme beginning in 2006 in which a former Chicago, Illinois investment fund manager fraudulently obtained $11.3 million from more than 40 investors who invested in private funds under his control. In addition to Ponzi payments, the manager misused the funds to support his lavish lifestyle and other businesses.

Defendants:
Neal Goyal
Sanction Amount:
$9,200,000
Announcement Date:
2015-07-07
Violation
Offering Fraud
Key Docs
Official SEC press release
37.2577 -122.038
Wisteria Global, Inc., Hiroshi Fujigami

Commission found that Respondents acted as unregistered brokers from 2011-2013, in connection with the solicitation of about $30.8 million in investments in Luca To-Kalon and Luca Oil from more than 400 Japanese investors. Fees of approximately $3.6 million received, half of which amount was retained by Respondents. Activity was in futherance of an apparent Ponzi scheme. Sanction was limited due to Respondents' inability to pay.

Defendants:
Wisteria Global, Inc.
Hiroshi Fujigami
Sanction Amount:
$1,793,783
Announcement Date:
2015-07-06
Violation
Offering Fraud
Key Docs
Official SEC press release
41.0188 -73.6461
AlphaBridge Capital Management, LLC, Thomas T. Kutzen, Michael J. Carino

Respondents are an investment advisory firm and its two owners. The Commission found that they fraudulently inflated the prices of securities in hedge fund portfolios they managed, by telling investors and the firm's auditor that they used independent price quotes from broker-dealers for certain unlisted, thinly-traded RMBS, while they had actually given these valuations - which were interally-derived - to the B-Ds to pass off as their own.

Defendants:
AlphaBridge Capital Management, LLC
Thomas T. Kutzen, Michael J. Carino
Sanction Amount:
$5,000,000
Announcement Date:
2015-07-01
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7638 -73.9749
Kohlberg Kravis Roberts & Co. L.P.

Settlement of charges that Respondent misallocated more than $17 million in so-called “broken deal” expenses to its flagship private equity funds in breach of its fiduciary duty. Respondent's co-investors, including its investors participated in relevant transactions, but no portion of the broken deal expenses was allocated to them for years, and Respondent's L.P. agreements did not disclose this.

Defendants:
Kohlberg Kravis Roberts & Co. L.P.
Sanction Amount:
$28,677,409
Announcement Date:
2015-06-29
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Helmut Anscheringer

Settlement of charges of insider trading after Swiss trader allegedly purchased stock and call options in AuthenTec Inc. upon learning from a longtime friend related to an AuthenTec executive that Apple proposed to buy the company. More than $1.8 million in alleged, illicit profits.

Defendants:
Helmut Anscheringer
Sanction Amount:
$2,851,768
Announcement Date:
2015-06-15
Violation
Trading and Pricing
Key Docs
Official SEC press release
25.7905 -80.1325
Charles Raymond Langston III, CRL Management, LLC, Guarantee Reinsurance, Ltd.

Settlement for alleged violations of Rule 105 of federal securities laws, which prohibits short selling an equity security during a restricted period in advance of a public offering and then purchasing the security in the offering. The Commission alleged that the individual defendant, through his two companies, made short sales in advance of secondary offerings by Wells Fargo, Mitsubishi UFJ Financial Group, and Alcoa, and purchased shares in the offerings.

Defendants:
CRL Management, LLC, Guarantee Reinsurance, Ltd.
Charles Raymond Langston III
Sanction Amount:
$1,563,901
Announcement Date:
2015-06-11
Violation
Market Manipulation
Key Docs
Official SEC press release
0 0
Andrew L. Evans

Canadian trader through his firm allegedly violated Rule 105 of federal securities laws, which prohibits short selling an equity security during a restricted period in advance of a public offering and then purchasing the security in the offering. The trader allegedly profited $582,175 through a number of these low-to-no risk illegal trading maneuvers with U.S. stocks.

Defendants:
Andrew L. Evans
Sanction Amount:
$1,009,988
Announcement Date:
2015-06-09
Violation
Market Manipulation
Key Docs
Official SEC press release
0 0
Andrew L. Evans

Settlement of allegations of repeated violations of Rule 105 of the federal securities laws through defendant's firm Maritime Asset Management, LLC. Rule 105 prohibits short selling an equity security during a restricted period in advance of a public offering and then purchasing the security in the offering. Alleged profits of $582,175.

Defendants:
Andrew L. Evans
Sanction Amount:
$1,009,988
Announcement Date:
2015-06-09
Violation
Market Manipulation
Key Docs
Official SEC press release
38.9236 -77.2205
Claus Zilmer, Computer Sciences Corporation, Michael Laphen, Michael Mancuso, Wayne Banks, Paul Wakefield

Settlement of charges against corporate Respondent and executives for alleged manipulation of financial results by fabricating new items in the accounting models, to avoid significant reductions to earnings in 2010 and 2011 resulting from losses under a key contract due to failure to meet deadlines. $190 million of this sanction is attributable to the corporate Respondent.

Defendants:
Computer Sciences Corporation
Claus Zilmer, Michael Laphen, Michael Mancuso, Wayne Banks, Paul Wakefield
Sanction Amount:
$190,263,390
Announcement Date:
2015-06-05
Violation
Financial Fraud
Key Docs
Official SEC press release
47.6076 -122.335
Mark F. Spangler, The Spangler Group, Inc.

Former investment advisor and his advisory firm charged with defrauding investment clients by secretly investing their money in two risky start-up companies that defendant co-founded. Approximately $47.7 million of client money was allegedly funnelled into these private ventures, which were inconsistent with promised investment strategies and investors' objectives. The diversion was concealed for years.

Defendants:
The Spangler Group, Inc.
Mark F. Spangler
Sanction Amount:
$4,078,595
Announcement Date:
2015-06-03
Violation
Financial Fraud
Key Docs
Official SEC press release
42.3564 -71.0693
Sage Advisory Group, LLC, Benjamin Lee Grant

Sanction resolving two cases against a former RIA and its principal. In the first, the individual fraudulently led his brokerage customers to transfer their assets to the defendant RIA with various pressure tactics, and with the misleading representation that they would benefit from a "wrap fee" program which actually benefitted the RIA. In the second case, the RIA employed the individual defendant's father who'd been barred from the industry, and did not disclose it.

Defendants:
Sage Advisory Group, LLC
Benjamin Lee Grant
Sanction Amount:
$1,051,038
Announcement Date:
2015-06-01
Violation
Financial Fraud
Key Docs
Official SEC press release
40.714 -74.0148
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Merrill Lynch Professional Clearing Corporation

Respondents utilized inaccurate data in the course of executing short sale orders. This occurred because some of these orders were processed based on stale information from Respondents' running list of easy-to-borrow securities.

Defendants:
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Merrill Lynch Professional Clearing Corporation
Sanction Amount:
$10,900,810
Announcement Date:
2015-06-01
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Adam S. Gottbetter

Settlement of allegations against securities lawyer that he used his New York law office as the headquarters for planning and implementing manipulation of the stocks of Kentucky USA Energy Inc., Dynastar Holdings Inc. and (with some newfound collaborators) HBP Energy Corp. Plans included fraudulent trades generated by a trading algorithm, and promotion through call centers, roadshows, and an exchange listing.

Defendants:
Adam S. Gottbetter
Sanction Amount:
$4,600,000
Announcement Date:
2015-05-28
Violation
Market Manipulation
Key Docs
Official SEC press release
0 0
Luis Chang, Everbright Development Overseas, Limited

Settlement of allegations that individual defendant posed as an agent of a Chinese mining company and caused a self-described investment banker to send a letter to U.S. mining company Allied Nevada Gold Corporation’s management proposing a cash tender offer. Defendant allegedly parlayed these events into a press release the following morning, causing an immedate surge in Allied's stock. Stock which defendant, through his co-defendant entity, had secretly loaded up on in advance.

Defendants:
Everbright Development Overseas, Limited
Luis Chang
Sanction Amount:
$5,875,583
Announcement Date:
2015-05-28
Violation
Market Manipulation
Key Docs
Official SEC press release
0 0
Gregory Geswein, Kevin Krakora, Sandra Miller

Defendants include former executives of Diebold, Inc., including two CFOs and a Director of Corporate Accounting. Sanction settles charges that they engaged in improper accounting practices, including, among other things, the improper use of "bill-and-hold" accounting, to inflate the company's earnings to meet forecasts.

Defendants:
Gregory Geswein, Kevin Krakora, Sandra Miller
Sanction Amount:
$1,379,057
Announcement Date:
2015-05-27
Violation
Financial Fraud
Key Docs
Official SEC press release
50.1138 8.66819
Deutsche Bank AG

Settlement of allegations that Respondent overvalued certain Leveraged Super Senior trades during the height of the global financial crisis which resulted in misstatements to its financial statements for year end 2008 and the first quarter of 2009.

Defendants:
Deutsche Bank AG
Sanction Amount:
$55,000,000
Announcement Date:
2015-05-26
Violation
Financial Fraud
Key Docs
Official SEC press release
-37.8154 144.968
BHP Billiton Ltd. and BHP Billiton Plc

Settlement of charges that Respondents failed to devise and maintain sufficient internal controls over a global hospitality program connected to a sponsorship of the 2008 Summer Olympic Games in Beijing. Respondents paid for some 60 foreign officials, primarily from countries in Africa and Asia, plus spouses and other guests to attend the games and enjoy three- or four-day hospitality packages valued at $12,000 to $16,000 per package.

Defendants:
BHP Billiton Ltd. and BHP Billiton Plc
Sanction Amount:
$25,000,000
Announcement Date:
2015-05-20
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
0 0
Nicholas Grosso, Michael Patrick Brown

Sacntion on default for Respondents' role in the fraud of Spectrum Concepts, LLC, which was founded in Florida for the supposed purpose of sponsoring and promoting concerts, but never had any assets (other than elderly investor funds) or business operations. Of $465,000 raised, nearly half was misappropriated. For more information, see https://www.sec.gov/alj/aljdec/2015/id770bpm.pdf.

Defendants:
Nicholas Grosso, Michael Patrick Brown
Sanction Amount:
$1,542,500
Announcement Date:
2015-05-20
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7588 -73.9808
Wwebnet, Inc.

False and misleading statements and omissions about defendant video software company to investors, including about its revenue generation and about the existence of a related-party transaction. Scheme enabled CEO to funnel at least $2.1 million of investor funds to himself/his personal options trading account in the Cayman Islands.

Defendants:
Wwebnet, Inc.
Sanction Amount:
$15,459,127
Announcement Date:
2015-05-20
Violation
Financial Fraud
Key Docs
Official SEC press release
39.968 -83.0031
Nationwide Life Insurance Company

Settlement of charges that Respondent routinely violated pricing rules in its daily processing of purchase and redemption orders for variable insurance contracts and underlying mutual funds. Respondent allegedly intentionally delayed its receipt of mail so that it could process orders using the next day's price.

Defendants:
Nationwide Life Insurance Company
Sanction Amount:
$8,000,000
Announcement Date:
2015-05-14
Violation
Trading and Pricing
Key Docs
Official SEC press release
33.3184 -85.888
Charles H. Merchant, Southern USA Resources, Inc.

Materially false reports filed with the Commission misrepresenting the value of gold mining company's land. Also, the individual defendant (the company's CEO) was found to have filed certifications containing false statements about the company's internal controls and his understanding of those controls. The company was also delinquent with respect to filings and failed to disclose material changes.

Defendants:
Southern USA Resources, Inc.
Charles H. Merchant
Sanction Amount:
$1,025,000
Announcement Date:
2015-05-07
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Rudolf D. Pameijer, Lindsay Sayer

Father and daughter raised money for Rykoworks Capital Group, LLC through promissory notes purporting to guarantee principal and offer risk free returns on foreign currency trading. Majority of funds were misappropriated, and the remainder depleted through trading losses by the scheme's falsely proclaimed forex expert.

Defendants:
Rudolf D. Pameijer, Lindsay Sayer
Sanction Amount:
$1,552,562
Announcement Date:
2015-05-01
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Joel I. Wilson

Default judgment based on allegations that Wilson raised approximately $7 million or more through offerings of registered and unregistered securities in two companies he owned, and then used the funds inconsistenly with the stated strategy, including on his personal expenses. Also, misrepresentations and omissions were included in publicly filed reports.

Defendants:
Joel I. Wilson
Sanction Amount:
$6,701,399
Announcement Date:
2015-04-30
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Frank Perkins Hixon, Jr., Frank P. Hixon, Sr., Destiny Robinson

Insider trading by former Senior Managing Director with investment banking firm Evercore. He traded in his father's and girlfriend's accounts, who were involved this case as relief defendants. He traded while in possession of material nonpublic information about a client, a potential client, and his own firm.

Defendants:
Frank Perkins Hixon, Jr., Frank P. Hixon, Sr., Destiny Robinson
Sanction Amount:
$1,640,419
Announcement Date:
2015-04-28
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Gregory J. Adams

Sanction against Respondent for his role in fraud conducted through Sovereign International Asset Management, Inc. Among other things, it was found that Sovereign's clients were induced through misrepresentations and omissions to invest in funds run by Nikolai Battoo, which paid referral fees to Respondent and turned out to be a massive fraud themselves. For more information, see https://www.sec.gov/alj/aljdec/2014/id727bpm.pdf.

Defendants:
Gregory J. Adams
Sanction Amount:
$1,820,828
Announcement Date:
2015-04-22
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Julieann Palmer Martin

Sanction against employee of National Note of Utah, LLC for her role in the Ponzi scheme the company operated from 1995 to 2012, involving approximately $44 million in Ponzi payments. Respondent had a central role at the company working with investors. For more information, see https://www.sec.gov/alj/aljdec/2015/id751bpm.pdf.

Defendants:
Julieann Palmer Martin
Sanction Amount:
$1,379,000
Announcement Date:
2015-04-21
Violation
Offering Fraud
Key Docs
Official SEC press release
39.7776 -75.4903
BlackRock Advisors, LLC, Bartholomew A. Battista

Sanction based on alleged failure to disclose a conflict of interest created by the outside business activity of a portfolio manager, whose outside business would up being the largest holding of the largest fund managed by the portfolio manager for BlackRock.

Defendants:
BlackRock Advisors, LLC
Bartholomew A. Battista
Sanction Amount:
12,060,000.00
Announcement Date:
2015-04-20
Violation
Financial Fraud
Key Docs
Official SEC press release
45.3198 -122.765
FLIR Systems, Inc.

Settlement of charges of FCPA violations for financing what an employee termed a “world tour” of personal travel for government officials in the Middle East who played key roles in decisions to purchase Respondent’s products. The SEC found that more than $7 million in profits resulted from sales influenced by the improper travel and gifts.

Defendants:
FLIR Systems, Inc.
Sanction Amount:
$9,504,584
Announcement Date:
2015-04-08
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
0 0
Jonathan E. Bryant

Scheme to manipulate trading volume and price of now defunct Virginia-based 8000 Inc.'s common stock. Defendant was CEO and disseminated financial reports and press releases falsely claiming millions of dollars in capital financing and revenues. Volume of trading rose by 93% and stock price went from less than $0.01 per share to $0.42 per share. Defendant then sold or facilitated the sale of stock (which should have been restricted) under these managed, artificial conditions.

Defendants:
Jonathan E. Bryant
Sanction Amount:
$3,168,185
Announcement Date:
2015-04-08
Violation
Market Manipulation
Key Docs
Official SEC press release
0 0
Stanley Jonathan Fortenberry

Sanction for rampant misstatements and omissions in raising investment funds for Respondent's now-defunct Premier Investment Fund L.P. For more information, see https://www.sec.gov/alj/aljdec/2015/id748jeg.pdf

Defendants:
Stanley Jonathan Fortenberry
Sanction Amount:
$1,046,500
Announcement Date:
2015-04-07
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Charles R. Kokesh

Investment advisor used two RIA firms he controlled, which in turn controlled four business-development companies with approximately 21,000 investors in them, to misappropriate investor funds by causing the BDCs to pay illegal distributions, performance fees, bonuses, and expense reimbursements. Attempted concealment of the scheme by directing the investment advisers to distribute misleading proxy statements to investors, and having the BDCs file false reports with the Commission.

Defendants:
Charles R. Kokesh
Sanction Amount:
$55,359,025
Announcement Date:
2015-04-02
Violation
Financial Fraud
Key Docs
Official SEC press release
42.7373 -73.8438
Stratocomm Corporation, Roger D. Shearer, Craig Danzig

Case against penny stock company, and its CEO and former Director of Investor Relations, who portrayed the company as actively engaged in the manufacture and sale of telecommunications systems for use in underdeveloped countries while, in reality, it had no product and no revenue. The SEC argued that defendants sold investors more than $4 million worth of stock, in unregistered transactions.

Defendants:
Stratocomm Corporation
Roger D. Shearer, Craig Danzig
Sanction Amount:
$5,143,710
Announcement Date:
2015-03-31
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7635 -73.979
Macquarie Capital (USA) Inc., Aaron Black, William Fang

Due diligence failure in underwriting public offering of Puda Coal, contributing to losses of hundreds of millions of shareholder value. Defendant company made $4.17 million profit as lead underwriter, despite having previously received information from Kroll Associates indicating that Puda Coal's claim of ownership of its principal/sole asset was false.

Defendants:
Macquarie Capital (USA) Inc.
Aaron Black, William Fang
Sanction Amount:
$15,247,711
Announcement Date:
2015-03-27
Violation
Offering Fraud
Key Docs
Official SEC press release
42.5651 -70.986
Biochemics, Inc.

Misrepresentations in offering of interests in company, luring investments of at least $9 million from approximately 70 investors. Among other things, investors were falsely told that the company had ongoing, valuable collaborations with pharma companies and drugs under FDA review, and had been independently valued at between $500 million and $2 billion.

Defendants:
Biochemics, Inc.
Sanction Amount:
$17,897,884
Announcement Date:
2015-03-25
Violation
Offering Fraud
Key Docs
Official SEC press release
41.0592 -81.477
The Goodyear Tire & Rubber Company

Settlement of allegations that Respondent failed to prevent or detect more than $3.2 million in bribes paid by subsidiaries to land tire sales in Kenya and Angola during a four-year period. The bribes were also allegedly falsely recorded as legitimate business expenses in the books and records of the subsidiaries, which were consolidated into Respondent's books and records.

Defendants:
The Goodyear Tire & Rubber Company
Sanction Amount:
$16,228,065
Announcement Date:
2015-02-24
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
29.9343 -90.077
Unico, Inc., Mark A. Lopez, Steven R. Peacock, Shane H. Traveller, Mark Allen Lefkowitz

Settlement with penny stock company, its former CEO and three penny stock financiers (partial settlement only as to one financier, of liability) for their alleged role in illegal unregistered distributions of billions of shares. Case also involved allegations of false and misleading disclosures filed with the Commission, and failure to report greater than 5% beneficial ownership.

Defendants:
Unico, Inc.
Mark A. Lopez, Steven R. Peacock, Shane H. Traveller, Mark Allen Lefkowitz
Sanction Amount:
$12,850,317
Announcement Date:
2015-02-24
Violation
Trading and Pricing
Key Docs
Official SEC press release
37.0466 -122.018
John A. Geringer, GLR Advisors, LLC

Estimated $60 million Ponzi scheme defrauding investors in GLR Growth Fund, L.P by touting fictitious profits from investments in liquid investments tied to major stock indices, instead of the losses incurred from the Fund's actual investments in private, illiquid startup companies.

Defendants:
GLR Advisors, LLC
John A. Geringer
Sanction Amount:
$2,772,475
Announcement Date:
2015-02-23
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Mitchell J. Stein

Sanction against attorney "architect" of fraudulent schemes designed to artificially inflate the securities of Heart Tronics, Inc. (f/k/a Signalife, Inc.), while defendant secretly made millions of dollars from selling it. In addition to incorporating various aggresive promotional tactics, defendant caused the company, between 2006 and 2008, to repeatedly make false announcements of millions of dollars of sales orders for Heart Tronics product.

Defendants:
Mitchell J. Stein
Sanction Amount:
$11,454,997
Announcement Date:
2015-02-23
Violation
Market Manipulation
Key Docs
Official SEC press release
0 0
Sandra Dyche

Part of a larger litigation, Dyche was alleged to have participated in diverting $1 million in funds that were purportedly raised by/for an energy company, but which instead were used to cover costs of an unrelated lawsuit against her. Sanction is the result of a settlement.

Defendants:
Sandra Dyche
Sanction Amount:
$1,414,000
Announcement Date:
2015-02-20
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7574 -73.9752
VCAP Securities, LLC, Brett Thomas Graham

Settlement with brokerage firm and its CEO for allegedly fraudulently deceiving market participants while serving as liquidation agent at CDO auctions, by arranging for a third-party broker-dealer to secretly bid to acquire certain bonds at the cheapest possible prices for them, using confidential bidding information that they provided.

Defendants:
VCAP Securities, LLC
Brett Thomas Graham
Sanction Amount:
$1,477,332
Announcement Date:
2015-02-19
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
John Gray, Christian Keller, Kyle Martin, Aaron Shepard

Settlement with stock research analyst, a corporate insider and two friends for alleged insider trading in California-based scheme. The insider worked for Applied Materials Inc. and later for Rovi Corporation and allegedly tipped the analyst about acquisitions and negative news announcements, who traded using one of the friend's brokerage accounts as a cover. The analyst also allegedly shared tips with the other friend, who also traded.

Defendants:
John Gray, Christian Keller, Kyle Martin, Aaron Shepard
Sanction Amount:
$1,667,373
Announcement Date:
2015-02-05
Violation
Trading and Pricing
Key Docs
Official SEC press release
41.8338 -87.7638
Broadwind Energy, Inc., J. Cameron Drecoll, Stephanie K. Kushner

Respondents are an alternative energy company, its former CEO, and its CFO, and this sanction is in settlement of alleged accounting and disclosure violations preventing investors, existing and new, from knowing that reduced business from two significant customers had caused substantial declines in the company’s long-term financial prospects.

Defendants:
Broadwind Energy, Inc.
J. Cameron Drecoll, Stephanie K. Kushner
Sanction Amount:
$1,691,467
Announcement Date:
2015-02-05
Violation
Financial Fraud
Key Docs
Official SEC press release
36.1814 -115.312
Edwin Yoshihiro Fujinaga, MRI International, Inc.

Sanction for massive Ponzi scheme in which defendants raised money from thousands of investors living primarily in Japan under the ruse that their funds were being used to buy accounts receivable from medical providers at a discount, with subsequently collection of the full value of those receivables from insurance companies. Instead, the money was used for other purposes, including financing the individual defendant's extravagant lifestyle.

Defendants:
MRI International, Inc.
Edwin Yoshihiro Fujinaga
Sanction Amount:
$584,359,364
Announcement Date:
2015-01-30
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Troy Lyndon, Ronald Zaucha

Sanction against CEO/founder of religious-themed video game manufacturer Left Behind Games, Inc. and his friend for scheme to prop up the company's revenue through sham, circular transactions with nearly 2 billion shares of newly issued (penny) stock. The company's revenue was inflated by nearly 1,300 percent in the one-year period ended March 31, 2011.

Defendants:
Troy Lyndon, Ronald Zaucha
Sanction Amount:
$6,200,000
Announcement Date:
2015-01-29
Violation
Financial Fraud
Key Docs
Official SEC press release
27.9515 -82.5327
The PBSJ Corporation

Sanction pursuant to a deferred prosecution agreement. The SEC found that the engineering and construction firm had offered and authorized bribes and employment to foreign officials to secure Qatari government contracts.

Defendants:
The PBSJ Corporation
Sanction Amount:
$3,407,875
Announcement Date:
2015-01-22
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
0 0
Robert L. Kelly

False and misleading statements and omissions to investors in Wwebnet, Inc., a video software company, including about its revenue generation and about the existence of a related-party transaction, which enabled defendant, its CEO, to funnel at least $2.1 million of investor funds to himself/his personal options trading account in the Cayman Islands.

Defendants:
Robert L. Kelly
Sanction Amount:
$2,111,660
Announcement Date:
2015-01-22
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Magdalena Tavella, Andres Horacio Ficicchia, Gonzalo Garcia Blaya, Lucia Mariana Hernando, Cecilia De Lorenzo, Adriana Rosa Bagattin, Daniela Patricia Goldman, Mariano Pablo Ferrari

Default judgment against remaining defendants in case alleging unlawful distribution of Biozoom (penny) stock without an effective registration statement for their sales. The other defendants appeared and were not assessed monetary penalties. Defendants claimed to have acquired their shares from shareholders of a predecessor entity and provided purchase documents, but these were apparently fabricated because the purported sellers no longer owned shares at the relevant time.

Defendants:
Magdalena Tavella, Andres Horacio Ficicchia, Gonzalo Garcia Blaya, Lucia Mariana Hernando, Cecilia De Lorenzo, Adriana Rosa Bagattin, Daniela Patricia Goldman, Mariano Pablo Ferrari
Sanction Amount:
$34,616,801
Announcement Date:
2015-01-16
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7611 -73.9802
UBS Securities LLC

Settlement of charges of securities law violations related to the operation and marketing of Respondent's dark pool. The dark pool allegedly was not a level playing field because Respondent failed to properly disclose to all subscribers the existence of an order type that allowed sub-penny orders to be placed, which otherwise were not permitted and which allowed traders to jump ahead of orders in the usual increments. Respondent allegedly pitched this almost exclusively to market makers and high-frequency trading firms.

Defendants:
UBS Securities LLC
Sanction Amount:
$14,476,389
Announcement Date:
2015-01-15
Violation
Financial Fraud
Key Docs
Official SEC press release
42.319 -71.235
F-Squared Investments

Settlement with marketer of ETF index products for falsely advertising its "Alphasector" products as performing successfully for years, using data that was derived from backtesting and thus not supportive of these claims. These false descriptions were also included in filings with the SEC.

Defendants:
F-Squared Investments
Sanction Amount:
$35,000,000
Announcement Date:
2014-12-22
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7547 -73.9711
Avon Products, Inc.

Settlement of charge that company failed to put controls in place that could have detected and prevented unlawful payments made to the Chinese government through a subsidiary. A total of $8 million in cash, gifts, travel, and entertainment was paid for special access with regard to new direct selling regulations in China, and to be the first to receive a direct selling license, and, subsequently, to keep it.

Defendants:
Avon Products, Inc.
Sanction Amount:
$67,365,013
Announcement Date:
2014-12-17
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
42.5269 -71.266
Bruker Corporation

Settlement of allegations that Respondent provided non-business related travel and improper payments to various Chinese government officials in an effort to win business. The SEC found that approximately $230,000 in improper payments were made, allowing Respondent to realize approximately $1.7 million in illicit profits.

Defendants:
Bruker Corporation
Sanction Amount:
$2,399,969
Announcement Date:
2014-12-15
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
0 0
Bill C. Crafton

Settlement with investment advisor to professional athletes who failed to disclose - or falsely disavowed - compensation and kickbacks to the tune of more than $1.5 million that he received for steering clients to certain investments and financial products. He also arranged through forged wire transfer authorizations for two clients to purchase a third (apparently favored) client's pisition in a fund that had been subjected to an asset freeze four days earlier.

Defendants:
Bill C. Crafton
Sanction Amount:
$1,698,911
Announcement Date:
2014-12-11
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Edward M. Laborio, Envit Capital, LLC, Envit Capital Group, Inc., Envit Capital Holdings, Inc., Envit Capital Private Wealth Management, LLC, Envit Capital Multi Strategy Mixed Investment Fund I LP, Aetius Group, PLC, Aetius Group, LLC

Boiler room scheme, this sanction is the result of a default judgment against the fugitive, primary orchestrator and (some of?) his many companies, with operations primarily in Boston but also some in the southern U.S. Up to $5.7 million raised from approximately 150 investors through the fraudulent sale of five unregistered securities offerings.

Defendants:
Envit Capital, LLC, Envit Capital Group, Inc., Envit Capital Holdings, Inc., Envit Capital Private Wealth Management, LLC, Envit Capital Multi Strategy Mixed Investment Fund I LP, Aetius Group, PLC, Aetius Group, LLC
Edward M. Laborio
Sanction Amount:
$37,006,590
Announcement Date:
2014-11-24
Violation
Market Manipulation
Key Docs
Official SEC press release
38.0231 -122.28
Bio-Rad Laboratories, Inc.

Respondent was charged with making approximately $7.5 million in bribes to foreign officials in order to win business in Russia, Vietnam, and Thailand during a five-year period, and for improperly recording the bribes in books and records as legitimate expenses like commissions, advertising, and training fees. The bribes were found to have generated $35 million in illicit profits.

Defendants:
Bio-Rad Laboratories, Inc.
Sanction Amount:
$40,700,000
Announcement Date:
2014-11-03
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
0 0
Timothy J. Coughlin, OICU Ltd., OICU Investments Corp., American Quality Cleaning Services, Inc. (d/b/a "Oxford Privacy Group"), Avocalon, LLC

Ponzi scheme operated over the internet through two entities, formed in Panama and the Commonwealth of Dominica, respectively, collecting investments exceeding $12.8 million from more than 5,000 investors. They were deceived into believing they were investing in an offshore credit union, but it actually did not exist.

Defendants:
OICU Ltd., OICU Investments Corp., American Quality Cleaning Services, Inc. (d/b/a "Oxford Privacy Group"), Avocalon, LLC
Timothy J. Coughlin
Sanction Amount:
$16,278,759
Announcement Date:
2014-10-30
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Rui Ge Dong, Victory First Limited, Rainbow Yield Limited, Yong Qi Li, Ai Xi Ji, Ye Wang, Zhong Wen Zhang, Li Xin Ma, Yong Li Li, Shu Ling Li

Default judgment against remaining defendants in scheme to create the false appearance of a liquid and active market for AutoChina International Limited's stock. The company was allegedly offered unfavorable terms for a loan due to the low trading volue of its stock, and its backers responded by depositing more than $60 million into U.S.-based brokerage accounts and engaging in hundreds of fraudulent trades over the next three months, including matched orders and wash trades.

Defendants:
Victory First Limited, Rainbow Yield Limited
Rui Ge Dong, Yong Qi Li, Ai Xi Ji, Ye Wang, Zhong Wen Zhang, Li Xin Ma, Yong Li Li, Shu Ling Li
Sanction Amount:
$1,500,000
Announcement Date:
2014-10-28
Violation
Market Manipulation
Key Docs
Official SEC press release
30.1722 -95.4703
Layne Christensen Company

Settlement of allegations that Respondent, a global water management, construction, and drilling company, made improper payments to foreign officials in Mali, Guinea, the Democratic Republic of Congo, Burkina Faso and Tanzania in order to obtain beneficial treatment and reduce its tax liability.

Defendants:
Layne Christensen Company
Sanction Amount:
$5,127,193
Announcement Date:
2014-10-27
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
0 0
Anthony Thompson, Otc Solutions, LLC, Jay Fung, Pudong LLC, Ryan Gonzalez, Recycle Tech, Inc.

Sanction for pump-and-dump scheme involving illegal issuance of unrestricted stock in the microcap company Recycle Tech, a purported home container building company. The scheme was designed to capitalize on circumstances in Haiti after the earthquake in 2010. Individual defendants include the CEO of Recycle Tech and two promoters. Over $1 million netted by the scheme.

Defendants:
Otc Solutions, LLC, Pudong LLC, Recycle Tech, Inc.
Anthony Thompson, Jay Fung, Ryan Gonzalez
Sanction Amount:
$1,100,695
Announcement Date:
2014-10-24
Violation
Market Manipulation
Key Docs
Official SEC press release
0 0
Dennis F. Wright

Misappropriation by registered represesentative of over $1.5 million from at least 28 customers, by convincing them to redeem so he could re-invest their proceeds in a managed account. Instead, the money was deposited in a personal bank account and false statements were sent to customers.

Defendants:
Dennis F. Wright
Sanction Amount:
$2,024,035
Announcement Date:
2014-10-17
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Nikolai Battoo, BC Capital Group S.A., BC Capital Group Limited

Default judgment against hedge fund manager and two companies he controlled (in Panama and Hong Kong, respectively). Numerous investors defrauded worldwide, with over $400 million raised, including $200 million in the U.S., by false claims of exceptional risk-adjusted returns and concealment of huge losses. At least $49 million misappropriated to fund the manager's flamboyant lifestyle.

Defendants:
BC Capital Group S.A., BC Capital Group Limited
Nikolai Battoo
Sanction Amount:
$358,129,197
Announcement Date:
2014-10-06
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Lee Cole, Linden Boyne

Default judgment against former CEO and CFO of Electronic Game Card Inc., which allegedly was the bait in a fraudulent scheme in which defendants falsely claimed (including by providing falsified documents to the auditor) that the company had millions of dollars in annual revenue, millions of dollars in investments, and an off-shore bank account worth more than $10 million. The value of this near-worthless company's outstanding common stock was inflated to as high as $150 million.

Defendants:
Lee Cole, Linden Boyne
Sanction Amount:
$29,670,751
Announcement Date:
2014-09-30
Violation
Financial Fraud
Key Docs
Official SEC press release
41.0199 -73.6482
Marlon Quan, Acorn Capital Group, LLC, Stewardship Investment Advisors, LLC, ACG II, LLC

Sanction consists of disgorgement and interest for funnelling money from hedge fund investors into Tom Petters Ponzi scheme (and collecting massive fees therefor). Estimated losses of over $220 million. Investors were lured by misrepresentations about the security of their investments, and defaults were concealed.

Defendants:
Acorn Capital Group, LLC, Stewardship Investment Advisors, LLC, ACG II, LLC
Marlon Quan
Sanction Amount:
$96,191,673
Announcement Date:
2014-09-25
Violation
Offering Fraud
Key Docs
Official SEC press release
37.5385 -122.257
Saba Software, Inc., Patrick Farrell, Sajeev Menon

Settlement of alleged accounting fraud in which managers based in the U.S. directed consultants in India to either falsely record time that they had not yet worked, or purposely fail to record hours worked during certain pay periods to conceal budget overruns from management and finance divisions. This resulted in revenue misstatements over a four-period, allowing Respondent company to achieve quarterly revenue and margin targets.

Defendants:
Saba Software, Inc.
Patrick Farrell, Sajeev Menon
Sanction Amount:
$1,904,638
Announcement Date:
2014-09-24
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Babak Yazdani

Sanction represent a clawback of bonuses and stock profits received while accounting fraud was occurring at Saba Software, Inc. Respondent was CEO, though not charged with misconduct.

Defendants:
Babak Yazdani
Sanction Amount:
$2,570,596
Announcement Date:
2014-09-24
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7605 -73.9831
Barclays Capital Inc.

Sanction in resolution of findings that Respondent failed in various ways in its integration of Lehman Brothers Inc.'s advisory business after acquiring it in 2008, including disclosure failures and charging wrongful commissions and fees. The alleged violations amounted to client losses of approximately $472,000 and additional revenue to Respondent of more than $3.1 million.

Defendants:
Barclays Capital Inc.
Sanction Amount:
$15,000,000
Announcement Date:
2014-09-23
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Trendon T. Shavers, Bitcoin Savings and Trust

Bitcoin Ponzi scheme operated through an unincorporated, online entity. Investors were lured in and defrauded out of more than 700,000 bitcoins with promises of high interest rates to be generated by trading against the dollar and "off the radar" sales of the virtual currency.

Defendants:
Bitcoin Savings and Trust
Trendon T. Shavers
Sanction Amount:
$40,704,667
Announcement Date:
2014-09-22
Violation
Offering Fraud
Key Docs
Official SEC press release
42.3515 -71.0687
RA Capital Management, LLC

Settlement of allegations of seventeen violations of Rule 105 of federal securities laws, which prohibits short selling an equity security during a restricted period in advance of a public offering and then purchasing the security in the offering. Alleged profits of $2,646,395.21.

Defendants:
RA Capital Management, LLC
Sanction Amount:
$3,624,360
Announcement Date:
2014-09-16
Violation
Market Manipulation
Key Docs
Official SEC press release
44.9477 -93.3181
Whitebox Advisors LLC

Settlement of allegations of five violations of Rule 105 of federal securities laws, which prohibits short selling an equity security during a restricted period in advance of a public offering and then purchasing the security in the offering. Alleged profits of $788,779.

Defendants:
Whitebox Advisors LLC
Sanction Amount:
$1,202,925
Announcement Date:
2014-09-16
Violation
Market Manipulation
Key Docs
Official SEC press release
36.3219 -86.5715
AgFeed Industries

Settlement of charges for repeatedly reporting fake revenues from the Respondent’s China operations in order to meet financial targets and prop up its stock price. Respondents also allegedly obtained illicit gains in stock offerings to investors at the inflated prices resulting from the accounting scheme, of which management was aware.

Defendants:
AgFeed Industries
Sanction Amount:
$18,000,000
Announcement Date:
2014-09-15
Violation
Financial Fraud
Key Docs
Official SEC press release
39.7466 -75.5463
Wilmington Trust Corporation

Settlement of accounting and disclosure fraud charges bank holding company Respondent for failing to report the true volume of its loans at least 90 days past due as they substantially increased in number during the financial crisis.

Defendants:
Wilmington Trust Corporation
Sanction Amount:
$18,545,896
Announcement Date:
2014-09-11
Violation
Financial Fraud
Key Docs
Official SEC press release
35.2275 -80.8423
Bank of America Corporation

Respondent failed to disclose known uncertainties regarding potential increased costs related to mortgage loan repurchase claims stemming from more than $2 trillion in residential mortgage sales from 2004 through the first half of 2008 by the bank and certain companies it acquired.

Defendants:
Bank of America Corporation
Sanction Amount:
$20,000,000
Announcement Date:
2014-08-21
Violation
Financial Fraud
Key Docs
Official SEC press release
35.2275 -80.8423
Bank of America Corporation

Part of global settlement of $16.65 billion, this sanction related to Respondent's conduct with respect to RMBS, particularly an offering in 2008 that Respondent allegedly failed to disclose was more than 70 percent comprised of wholesale channel loans, otherwise known as "toxic waste."

Defendants:
Bank of America Corporation
Sanction Amount:
$225,060,000
Announcement Date:
2014-08-21
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7211 -74.0012
Linkbrokers Derivatives LLC

Settlement of charges that Respondent brokerage firm unlawfully took secret profits of more than $18 million from customers by adding hidden markups and markdowns to their trades, and secured additional illicit profits by stealing portions of customers’ trades when they entered limit orders. Brokers allegedly filled at limit but withheld that information, then purchased or sold portions of the positions back to the market depending on conditions, keeping the profit.

Defendants:
Linkbrokers Derivatives LLC
Sanction Amount:
$14,000,000
Announcement Date:
2014-08-14
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Wayne A. Burmaster Jr.

Default judgment against participant in scheme to pump-and-dump a microcap company that was falsely represented to have an accomplished entrepreneur running it and to be acquiring a restaurant services company with valuable contracts. The stock rose more than 2,700 percent in a matter of months, and defendant participated in dumping more than $1 million worth of it, through several front companies.

Defendants:
Wayne A. Burmaster Jr.
Sanction Amount:
$1,349,158
Announcement Date:
2014-08-11
Violation
Market Manipulation
Key Docs
Official SEC press release
37.5129 -77.5347
AIC, Inc., Community Bankers Securities, LLC, Nicholas D. Skaltsounis, Allied Beacon Partners, Inc., f/k/a Waterford Investor Services, Inc., Advent Securities, Inc., CL Wealth Management, LLC, f/k/a Allied Beacon Wealth Management, LLC, f/k/a CBS Advisor

Ponzi scheme in which financial services holding company was used as basis for offerings of promissory notes and stock, which were sold through registered representatives associated with a broker-dealer subsidiary of the holding company, generally to unsophisticated investors who were misled as to risks, use of proceeds, etc.

Defendants:
AIC, Inc., Community Bankers Securities, LLC, Allied Beacon Partners, Inc., Advent Securities, Inc., CL Wealth Management, LLC
Nicholas D. Skaltsounis
Sanction Amount:
$70,630,728
Announcement Date:
2014-08-08
Violation
Offering Fraud
Key Docs
Official SEC press release
37.8899 -122.121
Kelly Ng, Walter Ng, Bruce Horowitz, The Mortgage Fund, LLC

Settlement of allegations that defendants defrauded investors in their real estate fund called Mortgage Fund '08 LLC (MF08) by secretly transferring assets of almost $39 million to rescue an older, rapidly collapsing fund called R.E. Loans, LLC. Defendants also allegedly lured investors into the pillaged fund by making false claims about its performance.

Defendants:
The Mortgage Fund, LLC
Kelly Ng, Walter Ng, Bruce Horowitz
Sanction Amount:
$5,205,367
Announcement Date:
2014-08-04
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
M. "Shi" Shailendra

Alleged oral and written misrepresentations concerning a GA-registered LLC held out as a distressed real estate investment vehicle. In excess of $2 million believed misappropriated for personal interests, and equity interests self-allocated despite not being funded.

Defendants:
M. "Shi" Shailendra
Sanction Amount:
$2,530,294
Announcement Date:
2014-08-01
Violation
Offering Fraud
Key Docs
Official SEC press release
42.1379 -72.5509
Smith & Wesson Holding Corporation

Settlement of allegations that employees and representatives of Respondent’s U.S.-based parent company authorized and made improper payments to foreign officials in Pakistan, Indonesia and other foreign countries while trying to win contracts to supply firearm products to military and law enforcement overseas.

Defendants:
Smith & Wesson Holding Corporation
Sanction Amount:
$2,034,892
Announcement Date:
2014-07-28
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
40.7601 -73.9855
Morgan Stanley and Co. LLC, Morgan Stanley ABS Capital I Inc., Morgan Stanley Mortgage Capital Holdings LLC

Commission found that Respondents made misleading public disclosures regarding the number of delinquent loans in two subprime RMBS transactions offered in 2007. Respondents sponsored, issued and underwrote the transactions, which were collateralized with loans with an aggregate principal value balance of over $2.5 million. The offering documents said that less than 1 percent of that was delinquent, while the actual delinquency amounts appeared to be a minimum of 4.5 percent, up to as much as 17 percent.

Defendants:
Morgan Stanley and Co. LLC, Morgan Stanley ABS Capital I Inc., Morgan Stanley Mortgage Capital Holdings LLC
Sanction Amount:
$275000000
Announcement Date:
2014-07-24
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Cedric Ca

Settlement of insider trading charges against Spanish citizen and former high-ranking official at Madrid-based Banco Santander, S.A., where he allegedly learned of its client, BHP Billiton's, proposed acquisition of Potash Corporation, and took advantage by purchasing Potash contracts-for-difference in the days leading up to the public announcement. He also allegedly tipped a friend who also traded, and the two profited $960,806.

Defendants:
Cedric Ca
Sanction Amount:
$1,813,612
Announcement Date:
2014-07-22
Violation
Trading and Pricing
Key Docs
Official SEC press release
41.82 -87.9301
Patrick G. Rooney, Solaris Management, LLC

Case alleging that investment manager radically changed the investment strategy of a managed fund, contrary to the fund's offering documents and marketing materials, by becoming wholly invested in a financially troubled microcap company, of which the individual defenant was Chairman.

Defendants:
Solaris Management, LLC
Patrick G. Rooney
Sanction Amount:
$1,597,876
Announcement Date:
2014-07-16
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Bernard H. Butts, Margaret A. Hering

Prime bank scheme orchestrated by Florida attorney, who held himself out and took in approximately $3.5 million in investments as an escrow agent for a supposed international trading program that didn't really exist.

Defendants:
Bernard H. Butts, Margaret A. Hering
Sanction Amount:
$3,951,696
Announcement Date:
2014-07-15
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
John Babikian

Settlement of allegations against a Canadian promoter behind a platform of affiliated microcap stock promotion websites used to spark buying of a recommended stock, in which the promoter had secretly positioned himself as a seller. Known as "scalping."

Defendants:
John Babikian
Sanction Amount:
$3,730,000
Announcement Date:
2014-07-08
Violation
Market Manipulation
Key Docs
Official SEC press release
44.8778 -93.3287
Todd A. Duckson, Capital Solutions Monthly Income Fund, LP, Transactional Fund Management LLC

False and misleading statements in connection with series of unregistered offerings of Fund interests. Investments totalling approximately $22 million raised over a two year period were supposed to be used to make real estate loans and other Fund investments, but were diverted to other, undisclosed purposes.

Defendants:
Capital Solutions Monthly Income Fund, LP, Transactional Fund Management LLC
Todd A. Duckson
Sanction Amount:
$19,706,151
Announcement Date:
2014-07-02
Violation
Offering Fraud
Key Docs
Official SEC press release
28.0912 -82.4037
OM Investment Management LLC, Gignesh Movalia

Unregistered hedge fund fraudulently raised more than $15 million in under a year, ostensibly for a pooled investment to acquire pre-IPO shares of Facebook. But those shares were secretly sold, and undisclosed, related party transactions were entered into. False account statements were also distributed in concealment of the scheme.

Defendants:
OM Investment Management LLC
Gignesh Movalia
Sanction Amount:
2,029,800.04
Announcement Date:
2014-06-30
Violation
Offering Fraud
Key Docs
Official SEC press release
44.8592 -93.2269
Marcus Luna, Nathan Montgomery, Adam Daskivich, David Murtha, St. Paul Venture Fund LLC, Minnesota Venture Capital, Inc., Real Estate of Minnesota, Inc., Matrix Venture Capital, Inc.

Multi-million dollar scheme to sell shares of Axis Technologies Group, Inc. stock in a public distribution without registration with the Commission. Involved a false legal opinion letter to a transfer agent that the shares were unrestricted pursuant to an exemption from registration under Regulation D.

Defendants:
St. Paul Venture Fund LLC, Minnesota Venture Capital, Inc., Real Estate of Minnesota, Inc., Matrix Venture Capital, Inc.
Marcus Luna, Nathan Montgomery, Adam Daskivich, David Murtha
Sanction Amount:
$23,190,000
Announcement Date:
2014-06-30
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
AutoChina International Limited, Hui Kai Yan

Scheme to create the false appearance of a liquid and active market for the company defendant's stock. The individual defendant is one of a number of investors alleged to have participated. The company was allegedly offered unfavorable terms for a loan due to the low trading volue of its stock, and its backers responded by depositing more than $60 million into U.S.-based brokerage accounts and engaging in hundreds of fraudulent trades over the next three months, including matched orders and wash trades.

Defendants:
AutoChina International Limited
Hui Kai Yan
Sanction Amount:
$4,500,000
Announcement Date:
2014-06-27
Violation
Market Manipulation
Key Docs
Official SEC press release
33.5181 -86.8089
Regions Financial Corporation

Settlement included as part of a deferred prosecution agreement, and the amount was limited by the fact/existence of parralel actions by the Federal Reserve Board and the Alabama Department of Banking. Charges for intentional fraud in misclassifying loans that should have been recorded as impaired for accounting purposes, and resultant overstatement in the bank's financial reporting.

Defendants:
Regions Financial Corporation
Sanction Amount:
$26,000,000
Announcement Date:
2014-06-25
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Michael Pendolino, Lawrence D. Grum, Michael L. Castelli

Insider trading scheme spanning five years and involving illegal tipping by insiders at three public companies: Celgene Corp. (Celgene), Sanofi-Aventis Corporation (Sanofi); and (3) Stryker Corp. (Stryker), and at least eleven material events, including mergers, a drug approval application, and quarterly earnings information. Defendant here were direct tippees, who also shared those tips with others.

Defendants:
Michael Pendolino, Lawrence D. Grum, Michael L. Castelli
Sanction Amount:
$1,623,830
Announcement Date:
2014-06-17
Violation
Trading and Pricing
Key Docs
Official SEC press release
34.167 -118.532
Robert Hurd, Your Best Memories International Inc.

Ponzi scheme raising approximately $1.2 million from more than 50 investors via false representations including that investments would be used to finance development and marketing of products to combat Alzheimer's disease. Instead, a much greater percentage of the funds were diverted for orchestrator's personal interests.

Defendants:
Your Best Memories International Inc.
Robert Hurd
Sanction Amount:
$1,960,170
Announcement Date:
2014-06-11
Violation
Offering Fraud
Key Docs
Official SEC press release
41.8076 -88.0683
Charles J. Dushek, Charles S. Dushek, Capital Management Associates, Inc.

Investment advisory firm and its principals allegedly defrauded clients of nearly $2 million by conducting a "cherry picking" scheme in which they placed trades without designating in advance whether they were proprietary or for clients, delaying allocation in order to take winners for themselves.

Defendants:
Capital Management Associates, Inc.
Charles J. Dushek, Charles S. Dushek
Sanction Amount:
$2,602,736
Announcement Date:
2014-06-05
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Richard K. Olive, Susan L. Olive

Husband and wife raised $75 million from more than 400 investors, many or all of which were elderly, through sales of misrepresented and illegitimate charitable gift annuities. Only a small amount of funds went to charitable services. Approximately $60 million recovered.

Defendants:
Richard K. Olive, Susan L. Olive
Sanction Amount:
$2,303,917
Announcement Date:
2014-05-29
Violation
Offering Fraud
Key Docs
Official SEC press release
40.3033 -111.657
Steven B. Heinz, S.B. Heinz & Associates, Inc.

Ponzi scheme in which financial planner, through his company, misappropriated approximately $1 million in investors’ funds which were commingled and used for purposes such as the payment of personal credit cards, household expenses, and personal travel.

Defendants:
S.B. Heinz & Associates, Inc.
Steven B. Heinz
Sanction Amount:
3,656,675.84
Announcement Date:
2014-05-22
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Herbert Richard Lawson, William B. Lawson, John J. Cerullo

Settlement of insider trading claims against two brothers and a family friend, founders of St. Paul, Minnesota software company Lawson Software. They were allegedly aware of incorrect media and analyst reports about the company's acquisition and took unfair advantage, including by selling shares to avoid losses, and tipping another trader to do the same.

Defendants:
Herbert Richard Lawson, William B. Lawson, John J. Cerullo
Sanction Amount:
$5,799,773
Announcement Date:
2014-05-12
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
S. Paul Kelley, George Tazbaz, Roger D. Lockhart, Robert S. Agriogianis, Shawn A. Becker

Sanction in settlement of charges that defendants engaged in reverse merger schemes involving Chinese companies and U.S. public shell companies and hid their control over the companies through a vast network of U.S. and international entities. They allegedly then, sold the stock in unregistered distributions, manipulated the trading, and obtained millions in profits as a result.

Defendants:
S. Paul Kelley, George Tazbaz, Roger D. Lockhart, Robert S. Agriogianis, Shawn A. Becker
Sanction Amount:
$9,368,999
Announcement Date:
2014-05-07
Violation
Market Manipulation
Key Docs
Official SEC press release
39.7281 -105.123
Diego F. Hernandez, HD Mile High Marketing

Commission found that, over approximately two years in 2011-2013, Respondents raised and misappropriated approximately $921,000 from 13 Colorado investors through a fraudulent offering of securities. Investors were told their money would buy corporate bonds or other “safe” investments that would pay a guaranteed, above-market annual interest rate. Instead, it was misappropriated for personal use and Ponzi payments.

Defendants:
HD Mile High Marketing
Diego F. Hernandez
Sanction Amount:
$1,610,011
Announcement Date:
2014-05-01
Violation
Offering Fraud
Key Docs
Official SEC press release
37.412 -122.148
Hewlett-Packard Company

Respondent was charged with violating the FCPA based on allegations that its subsidiaries paid bribes in a total amount of approximately $4 million to government officials in Russia, Poland and Mexico to obtain or retain lucrative public contracts.

Defendants:
Hewlett-Packard Company
Sanction Amount:
$34,000,000
Announcement Date:
2014-04-09
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
41.991 -71.4769
CVS Caremark Corp., Laird Daniels

Settlement of charges that company misled investors by failing to timely disclose financial setbacks and by using improper accounting that artificially boosted its financial performance. In particular, the company allegedly fraudulently omitted lost revenues in bond offering documents, and overstated results for its pharmacy business and its "retention rate." Improper accounting adjustments were allegedly orchestrated by the individual defendant, who settled for $75,000.

Defendants:
CVS Caremark Corp.
Laird Daniels
Sanction Amount:
$20,075,000
Announcement Date:
2014-04-08
Violation
Financial Fraud
Key Docs
Official SEC press release
40.4166 -74.0481
Visionary Trading LLC, Lightspeed Trading LLC, Andrew Actman, Joseph Dondero, Eugene Giaquinto, Lee Heiss, Jason Medvin

Alleged market manipulation and operating a brokerage firm that wasn’t registered as required. The manipulation was described as illegal “layering” or “spoofing," in which the trader places layers of orders with no intention of having them executed. The purpose is to skew perceptions of market demand and prompt buying or selling, which the trader is positioned to take advantage of.

Defendants:
Visionary Trading LLC, Lightspeed Trading LLC
Andrew Actman, Joseph Dondero, Eugene Giaquinto, Lee Heiss, Jason Medvin
Sanction Amount:
2794041.67
Announcement Date:
2014-04-04
Violation
Market Manipulation
Key Docs
Official SEC press release
0 0
Michael Terpins, Rodrigo Terpins

Settlement with two brothers in Brazil allegedly behind insider trading in call options in H.J. Heinz Company the day before annoucement of an acquisition. The trading was conducted using a Cayman Islands entity called Alpine Swift Ltd. Approximately $1.8 million in profits.

Defendants:
Michael Terpins, Rodrigo Terpins
Sanction Amount:
$4,809,857
Announcement Date:
2014-04-03
Violation
Trading and Pricing
Key Docs
Official SEC press release
45.54 -122.638
John Kinnucan, Broadband Research Corporation

Sanction on summary judgment against an incarcerated investment consultant and his firm for insider trading violations. The consultant purported to provide legitimate research and analysis services regarding technology companies/issuers, but routinely tipped clients with material nonpublic information he obtained from insider sources that he wined, dined and befriended to gain access. F5 Networks Inc. identified as a victim.

Defendants:
Broadband Research Corporation
John Kinnucan
Sanction Amount:
$13,067,067
Announcement Date:
2014-04-02
Violation
Trading and Pricing
Key Docs
Official SEC press release
41.9853 -87.832
A Chicago Convention Center, LLC, Anshoo Sethi, Intercontinental Regional Center Trust of Chicago, LLC

Fraud targeting foreign investors seeking to participate in EB-5 immigrant program. Approximately $158 million raised including approximately $11 million in administrative fees based on false representations about hotel and conference center construction projects/investments.

Defendants:
A Chicago Convention Center, LLC, Intercontinental Regional Center Trust of Chicago, LLC
Anshoo Sethi
Sanction Amount:
$15,400,000
Announcement Date:
2014-03-19
Violation
Offering Fraud
Key Docs
Official SEC press release
34.0314 -118.47
Lions Gate Entertainment Corp.

Respondent failed to make complete and accurate disclosures while involved in thwarting a hostile takeover bid by a large shareholder. Extraordinary corporate transactions in 2010 put millions of newly issued company shares in the hands of a management-friendly director, a purpose of which was to defeat a the hostile tender offer. However, the company falsely stated that the transactions were part of a previously announced plan to reduce debt.

Defendants:
Lions Gate Entertainment Corp.
Sanction Amount:
$7500000
Announcement Date:
2014-03-13
Violation
Financial Fraud
Key Docs
Official SEC press release
40.7087 -74.0081
Henry Morris, David Loglisci, Julio Ramirez, Nosemote LLC, Pantigo Emerging LLC, Tuscany Enterprises LLC, W Investment Strategies LLC

Partial settlement of larger litigation regarding "pay-to-play" scheme involving New York State's Comon Retirement Fund. Finder fees and other payments and benefits were extracted from investment management firms seeking to do business with the Fund. Defendants include individuals who formerly had roles in State government. Money sanction is applicable to only two of the seven defendants who settled here, partly in view of criminal sentences that included forfeiture.

Defendants:
Nosemote LLC, Pantigo Emerging LLC, Tuscany Enterprises LLC, W Investment Strategies LLC
Henry Morris, David Loglisci, Julio Ramirez
Sanction Amount:
$3,404,772
Announcement Date:
2014-03-10
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7851 -73.413
Worldwide Capital, Inc., Jeffrey W. Lynn

Settlement of charges that Respondents violated Rule 105 sixty times over approximately five years by buying equity securities in public offerings after short selling the same securities in the restricted periods leading up to the offerings.

Defendants:
Worldwide Capital, Inc.
Jeffrey W. Lynn
Sanction Amount:
$7253726
Announcement Date:
2014-03-05
Violation
Market Manipulation
Key Docs
Official SEC press release
0 0
Zheng Cheng

Default judgment against Chairman and CEO of China MediaExpress Holdings, Inc. in case alleging that the entity's financial condition and business operations were materially misrepresented, such that its stock price tripled to more than $20 per share, making the company attractive to investors and allowing it to raise more than $53 million from stock sales.

Defendants:
Zheng Cheng
Sanction Amount:
$17,868,359
Announcement Date:
2014-02-24
Violation
Financial Fraud
Key Docs
Official SEC press release
41.3185 -72.2447
Jerry S. Williams, Monk's Den, LLC, First In Awareness, LLC

Settlement of allegations against stock promoter and two entities he controlled that they encouraged followers to buy two stocks to force a short squeeze, falsely claiming prior success with lhis "float Lock Down" strategy. However, the promoter allegedly had been hired by the two issuers whose stock he was recommending and was actually a seller while doing so, of the stocks with which he had been paid.

Defendants:
Monk's Den, LLC, First In Awareness, LLC
Jerry S. Williams
Sanction Amount:
$9,617,598
Announcement Date:
2014-02-19
Violation
Market Manipulation
Key Docs
Official SEC press release
0 0
CITIC Securities International Investment Management (HK) Limited, China Shenghai Investment Management Limited

Settlement with two Hong Kong-based asset management firms whose accounts were frozen in a major insider trading case involving the stock of Canadian energy company Nexen Inc. prior to its acquisition by China-based CNOOC Ltd.

Defendants:
CITIC Securities International Investment Management (HK) Limited, China Shenghai Investment Management Limited
Sanction Amount:
$10,900,000
Announcement Date:
2014-02-11
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Andres Truppel, Ulrich Bock, Stephan Signer

Settlement with a former executive of Siemens Aktiengesellschaft and default judgments against two others, for involvement in alleged long-running bribery scheme at Siemens and its regional company in Argentina, to retain a billion dollar contract to produce national identity cards for Argentine citizens. Bribed officials allegedly included two Argentine presidents.

Defendants:
Andres Truppel, Ulrich Bock, Stephan Signer
Sanction Amount:
$1,541,957
Announcement Date:
2014-02-10
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
42.3312 -83.0457
Onyx Capital Advisors, LLC, Roy Dixon, Jr., Michael A. Farr

Start-up private equity fund raised approximately $23.8 million from three pension funds. Founder and friend misappropriated approximately $5.4 million through illegal withdrawals and diverting money from purported investments into companies controlled by the friend.

Defendants:
Onyx Capital Advisors, LLC
Roy Dixon, Jr., Michael A. Farr
Sanction Amount:
$9,500,000
Announcement Date:
2014-02-07
Violation
Offering Fraud
Key Docs
Official SEC press release
42.4328 -82.8775
Joseph Paul Zada, Zada Enterprises, LLC

Ponzi scheme conducted through offer of unregistered promissory notes with high interest rates and falsely-claimed underlying oil investments. Orchestrator raised at least $27.5 million from at least 60 investors over approximately 3.5 years.

Defendants:
Zada Enterprises, LLC
Joseph Paul Zada
Sanction Amount:
$121,657,741
Announcement Date:
2014-02-02
Violation
Offering Fraud
Key Docs
Official SEC press release
0 0
Marek Leszczynski, Benjamin Chouchane, Henry Condron

Brokers who worked at cash desk of NY broker-dealer illegally overcharged customers in tens of thousands of trades over a four year span, for a total of $18.7 million. They used hidden markups and markdowns during periods of market volatility and secretly kept portions of profitable customer trades.

Defendants:
Marek Leszczynski, Benjamin Chouchane, Henry Condron
Sanction Amount:
$4,157,252
Announcement Date:
2014-01-28
Violation
Trading and Pricing
Key Docs
Official SEC press release
34.146 -118.142
Western Asset Management Company

Settlement with Legg Mason subsidiary of charges that it concealed losses to ERISA investors resulting from a coding error that allocated a restricted private investment to their accounts.

Defendants:
Western Asset Management Company
Sanction Amount:
$10620392
Announcement Date:
2014-01-27
Violation
Financial Fraud
Key Docs
Official SEC press release
34.146 -118.142
Western Asset Management Company

Settlement with Legg Mason subsidiary of charges that it engaged in cross trading that favored come clients over others. The firm allegedly used prearranged sale and repurchase transactions at times when forced by liquidations or downgrades to sell non-agency mortgaged backed securities and similar assets. It believed these assets were suitable for some investors and more valuable than the depressed market would bear, but arms-length transactions are required to comply with the law.

Defendants:
Western Asset Management Company
Sanction Amount:
$8440881
Announcement Date:
2014-01-27
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Berton M. Hochfeld, Hochfeld Capital Management, L.L.C.

Sanction on consent for misappropriation of funds and material misstatements to Heppelwhite Fund L.P. investors, including providing them with periodic statements that overstated the value of their investments, and failing to disclose that the individual defendant was subject to a 2006 SEC Order barring him from associating with any broker, dealer, or investment adviser.

Defendants:
Hochfeld Capital Management, L.L.C.
Berton M. Hochfeld
Sanction Amount:
$1,785,332
Announcement Date:
2014-01-23
Violation
Financial Fraud
Key Docs
Official SEC press release
0 0
Waldyr Da Silva Prado Neto

Default judgment, the vast majority of this sanction is a penalty. Levied against a Brazilian formerly employed by Wells Fargo Advisors, LLC in Miami. Claim based on $175,000 insider trading profits in advance of the 2010 acquisition of Burger King, following a tip from a customer who was an investor in the acquiror. He also shared the tip.

Defendants:
Waldyr Da Silva Prado Neto
Sanction Amount:
$5,634,232
Announcement Date:
2014-01-14
Violation
Trading and Pricing
Key Docs
Official SEC press release
40.7597 -73.973
Alcoa Inc.

Respondent, a global aluminum producer, was charged with violating the FCPA based on allegations that its subsidiaries repeatedly paid bribes to government officials in Bahrain to maintain a key source of business.

Defendants:
Alcoa Inc.
Sanction Amount:
$175,000,000
Announcement Date:
2014-01-09
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
37.795 -122.403
Diamond Foods Inc., Michael Mendes

Settlement of charges against Diamond Foods and its former CEO for his role in an alleged accounting scheme to falsify walnut costs in order to boost earnings and meet estimates by stock analysts. This was allegedly accomplished by delaying recognition of payments to walnut growers, leading to a restatement of financial results in November 2012 whereupon the company's stock price slid to $17 per share from a high of $90 in 2011.

Defendants:
Diamond Foods Inc.
Michael Mendes
Sanction Amount:
$5,125,000
Announcement Date:
2014-01-09
Violation
Financial Fraud
Key Docs
Official SEC press release
41.8864 -87.6307
Archer-Daniels-Midland Company

Settlement for failing to prevent illicit payments made by foreign subsidiaries to Ukrainian government officials in violation of the FCPA. The subsidiaries, in Germany and Ukraine, were found to have paid $21 million in bribes through intermediaries to secure the release of VAT refunds, which were concealed by improperly recording the transactions in accounting records. Approximately $33 million in illegal profits.

Defendants:
Archer-Daniels-Midland Company
Sanction Amount:
$36,467,366
Announcement Date:
2013-12-24
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
0 0
Dawn Wright-Olivares, Daniel Olivares

Internet-based combined Ponzi and pyramid scheme raising more than $850 million from over a million customer/investors in under two years. Investments were taken through an "affiliate advertising division" for a penny auction site that offered unregistered securities and the orchestrators fabricated performance results.

Defendants:
Dawn Wright-Olivares, Daniel Olivares
Sanction Amount:
11,456,999.52
Announcement Date:
2013-12-23
Violation
Offering Fraud
Key Docs
Official SEC press release
42.3494 -71.578
Advanced Cell Technology, Inc.

Settlement of charges arising out of issuance of hundreds of millions of unregistered shares of common (penny) stock on thirteen separate occasions, without qualifying for any exemption from registration. Defendant endeavored to mask this activity as supporting debt repayment (which would have qualified for exemption) as opposed to being capital formation, but method involving a sham creditor and side agreements was unavailing.

Defendants:
Advanced Cell Technology, Inc.
Sanction Amount:
$4,086,619
Announcement Date:
2013-12-23
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7621 -73.9846
G-Trade Services LLC, ConvergEx Global Markets Limited, and ConvergEx Execution Solutions LLC

Among other things, Respondents unnecessarily routed certain global trading and transition management customer orders to an offshore affiliate in order to charge undisclosed mark-ups and mark-downs. Respondents endeavored to conceal this practice through a multiple-broker corporate structure, and false and misleading statements to customers who inquired.

Defendants:
G-Trade Services LLC, ConvergEx Global Markets Limited, and ConvergEx Execution Solutions LLC
Sanction Amount:
$107,424,429
Announcement Date:
2013-12-18
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Daniel Bogar, Jason T. Green

Sanctions for disclosure failures against former President and former head of the private client group at Stanford Group Company, Inc., the broker-dealer through which Allen Stanford conducted his massive Ponzi scheme. For more information, see https://www.sec.gov/alj/aljdec/2013/id502cff.pdf.

Defendants:
Daniel Bogar, Jason T. Green
Sanction Amount:
$4,688,992
Announcement Date:
2013-12-18
Violation
Financial Fraud
Key Docs
Official SEC press release
40.714 -74.0148
Merrill Lynch, Pierce, Fenner & Smith Incorporated

Settlement of charges that Respondent made faulty disclosures about collateral selection for two collateralized debt obligations (CDOs) that it structured and marketed to investors, and maintained inaccurate books and records for a third CDO, from which Respondent was found to benefit in the approximate amount of $56 million.

Defendants:
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Sanction Amount:
$131800027
Announcement Date:
2013-12-12
Violation
Financial Fraud
Key Docs
Official SEC press release
39.1023 -84.512
Fifth Third Bancorp, Daniel Poston

Settlement of charges against financial services company and its former chief financial officer for improper accounting of commercial real estate loans in the midst of the financial crisis. Loans which Respondent company had formed the intent to sell were mis-classed as "held for investment," avoiding a required fair market valuation.

Defendants:
Fifth Third Bancorp, Daniel Poston
Fifth Third Bancorp, Daniel Poston
Sanction Amount:
$6,600,000
Announcement Date:
2013-12-04
Violation
Financial Fraud
Key Docs
Official SEC press release
29.7533 -95.4527
Weatherford International Ltd.

Settlement for FCPA violations in authorizing bribes and improper travel and entertainment for foreign officials in the Middle East and Africa to win business, including kickbacks in Iraq to obtain United Nations Oil-for-Food contracts. This conduct allegedly went on for close to ten years, involved falsification of books and records, and led to more than $59.3 million in profits. Internal controls were deemed ineffective.

Defendants:
Weatherford International Ltd.
Sanction Amount:
$97,259,267
Announcement Date:
2013-11-26
Violation
Foreign Corrupt Practices Act
Key Docs
Official SEC press release
42.2905 -71.1634
Steven Palladino, Viking Financial Group, Inc.

Ponzi scheme centered around a short-term, high interest loan company. Orchestrators made very few real loans, instead using investors' funds largely to make payments to earlier investors and for personal expenses. Approximately 33 victims and $9.7 million stolen.

Defendants:
Viking Financial Group, Inc.
Steven Palladino
Sanction Amount:
$9,824,108
Announcement Date:
2013-11-25
Violation
Offering Fraud
Key Docs
Official SEC press release
40.7883 -73.7243
Curt Kramer, Mazuma Corporation, Mazuma Funding Corporation, Mazuma Holding Corporation

Settlement of findings that Respondents purchased billions of shares in microcap companies Laidlaw Energy Group and Bederra Corporation and failed to register them before they were re-sold to investors for sizeable profits. Based on timing, the Laidlaw transactions were found to have been purchased in a single, integrated offering that exceeded the monetary threshold for such offerings permitted by law.

Defendants:
Mazuma Corporation, Mazuma Funding Corporation, Mazuma Holding Corporation
Curt Kramer
Sanction Amount:
$1462978
Announcement Date:
2013-11-25
Violation
Trading and Pricing
Key Docs
Official SEC press release
0 0
Corey Ribotsky

Settlement of allegations that defendant made false statements during the financial crisis to investors regarding the poor performance and trading strategy of the family of funds he managed. The SEC also alleged that defendant misappropriated client assets and misled investors about the decision to form a Master Fund in the family.

Defendants:
Corey Ribotsky
Sanction Amount:
$14,500,000
Announcement Date:
2013-11-21
Violation
Financial Fraud
Key Docs
Official SEC press release
41.0479 -73.5436
RBS Securities, Inc.

Alleged misrepresentations concerning the quality of residential mortgage-backed securities included in a $2.2 billion offering ("Soundview Home Loan Trust 2007-OPT1").

Defendants:
RBS Securities, Inc.
Sanction Amount:
$153,700,000
Announcement Date:
2013-11-07
Violation
Offering Fraud
Key Docs