Financial Enforcement Actions | Week of Apr 03 to Apr 09

Penalties: $50,000.00
Respondent: Young Myoung Kim
Violation: On November 16, 2020, the CME Group Chief Regulatory Officer (“CRO”) charged Young Myoung Kim (“Kim”) with violating NYMEX Rules 575.A. and 576 based on allegations that Kim entered or caused to be entered an order with the intent, at the time of order entry, to cancel the order or orders before execution or to modify the order or orders to avoid execution, on one or more occasions in the Crude Oil and E-Mini Crude Oil futures markets from February 10, 2019 to May 23, 2019 using a user ID other than his own unique user ID… Read More

Penalties: $50,000.00
Respondent: Wai Cheong Arthur Chan
Violation: On November 16, 2020, the CME Group Chief Regulatory Officer (“CRO”) charged Wai Cheong Arthur Chan (“Chan”) with violating COMEX Rules 534 and 576 based on allegations that Chan entered orders on Globex between accounts owned by his employer for the purpose of reducing margin risk in one of the accounts between October 23, 2019 and October 30, 2019 and allowed his employees to enter these orders on Globex using his Tag 50 User ID… Read More

Penalties: $862,200.00
Respondent: Daniel Portilla Jr & Yorba Capital Management, LLC
Violation: Respondents’ misrepresentations were thus false, misleading, and material, and violated the CFPA’s prohibition against deceptive acts or practices. Corporate Respondent’s actions therefore constitute threats to take legal action that the company did not intend to take in violation of FDCPA § 1692e(5) and false representations and deceptive means to collect or attempt to collect debt in violation of FDCPA § 1692e(10)… Read More

Penalties: $10,000.00
Respondent: Brian Coburn; Alexander Blau
Violation: Between February 2018 and March 2019, Coburn and Blau engaged in two undisclosed outside business activities and opened a securities account away from their firm without obtaining prior written consent from FTP in violation of FINRA Rules 3270, 3210 and 2010… Read More

Penalties: $115,000.00
Respondent: Richard Alter & Alternative Execution Group
Violation: From February 2017 through December 2018, Alternative Execution Group and Alter failed to establish and implement an anti-money laundering (AML) compliance program reasonably designed to detect and cause the reporting of potentially suspicious transactions… Read More

Penalties: $5,000.00
Respondent: William Assatly
Violation: From February 2017 through December 2018, Assatly failed to establish and implement an anti-money laundering (AML) compliance program reasonably designed to detect and cause the reporting of suspicious activity… Read More

Penalties: N/A
Respondent: David B. Zuber
Violation: In February 2021, FINRA sent Zuber a notice to appear for an on-the-record interview pursuant to FINRA Rule 8210. Zuber refused to appear for this interview, in violation of FINRA Rules 8210 and 2010… Read More

Penalties: $200,000.00
Respondent: Independent Financial Group, LLC
Violation: From January 2008 through March 2016, IFG failed to reasonably supervise one of the firm’s former registered representatives (“RR 1”) who made unsuitable recommendations to customers… Read More

Penalties: N/A
Respondent: Joia Evans
Violation: Evans refused to provide information and documents that were requested pursuant to FINRA Rule 8210, in violation of FINRA Rules 8210 and 2010… Read More

Penalties: $5,000.00
Respondent: Dannia Ferreira
Violation: While taking the Series 6 qualification examination, Ferreira possessed and had access to unauthorized study materials in violation of FINRA Rules 1210 and 2010… Read More

Penalties: N/A
Respondent: Jared Ailstock
Violation: Respondent violated FINRA Rules 8210 and 2010 by failing to comply with a request to appear for testimony pursuant to FINRA Rules 8210… Read More

Penalties: N/A
Respondent: Henry Clay Smith II
Violation: By providing false written responses to FINRA in response to FINRA Rule 8210 requests and by also providing false testimony to FINRA taken pursuant to FINRA Rule 8210, Smith violated FINRA Rules 8210 and 2010… Read More

Penalties: N/A
Respondent: Gregory Walter McCloskey
Violation: On November 5, 2019, WestPark Capital filed a Uniform Termination Notice for Securities Registration (Form U5) terminating McCloskey’s registration and indicating that the firm had permitted him to resign: (i) due to McCloskey’s failure to follow a heightened supervision plan, and (ii) after allegations were made that accused McCloskey of violating investment-related statutes, regulations, rules and industry standards of conduct… Read More

Penalties: $5,000.00
Respondent: Louis M. Olave
Violation: Between October 2017 February 2018, Respondent participated in private securities transactions totaling $217,477, without prior disclosure to, and approval from his employer member firm. This conduct violated FINRA Rules 3280 and 2010… Read More

Penalties: $152,031.50
Respondent: Joseph A. Ambrosole
Violation: Between December 2017 and June 2020, Ambrosole excessively and unsuitably traded the accounts of two customers, in violation of FINRA Rules 2111 and 2010… Read More

Penalties: $5,000.00
Respondent: Timothy Andrew Catanzano
Violation: In 2018, Catanzano willfully failed to amend his Uniform Application for Securities Industry Registration or Transfer (Form U4) to disclose two non-investment related material reportable events that were required to be disclosed. As a result, Catanzano violated Article V, Section 2(c) of FINRA’s By-Laws and FINRA Rules 1122 and 2010… Read More

Penalties: $20,000.00
Respondent: Dawson James Securities, Inc
Violation: During the period June 2015 through April 2020, Dawson James charged customers excessive commissions on 236 transactions. As a result, the firm violated FINRA Rules 2121 and 2010… Read More

Penalties: $5,000.00
Respondent: Paul Tadashi Inouye
Violation: While associated with Union Square, Inouye was charged with two felonies. Specifically, on July 24, 2019, Inouye was charged with felony “rape of spouse unconscious by intoxication & anesthetic substance,” and on October 8, 2019, Inouye was charged with felony false imprisonment by violence… Read More

Penalties: $345,000.00
Respondent: Credit Suisse Securities (USA) LLC
Violation: During the period from at least July 2016 to April 2019, Respondent failed to establish and maintain a supervisory procedures, reasonably designed to monitor its employees’ outside brokerage accounts. The firm’s supervisory deficiencies led to its failure to timely monitor thousands of employee outside brokerage accounts for compliance with the firm’s trading restrictions designed to identify self-dealing and other potentially deceptive trading practices. Accordingly, the firm violated FINRA Rules 3110(a), 3110(b), and 2010… Read More

Penalties: N/A
Respondent: E. & J. Gallo Winery; Dry Creek Corporation; Constellation Brands, Inc
Violation: The Commission considered the matter and determined that it had reason to believe that Respondents have violated the said Acts, and that a complaint should issue stating its charges in that respect… Read More

Penalties: $32,470,000.00
Respondent: GEORGE M. MOSCONE & WELLCO, INC
Violation: The Complaint alleges that Defendants participated in deceptive acts or practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), in connection with the advertising, marketing, distribution, and sale of television antennas and related amplifiers… Read More

Penalties: $10,858,777.20
Respondent: Jay Singh & American Financial Support Services Inc; US Financial Freedom Center, Inc
Violation: The Complaint charges that Defendants participated in deceptive acts or practices in violation of Section 5 of the FTC Act, 15 U.S.C. § 45, and the Telemarketing Sales Rule, 16 C.F.R. pt. 310, in the marketing and sale of student loan debt relief services… Read More

Penalties: $250,000.00
Respondent: Paragon Coin, Inc.
Violation: The Commission found that between August 2017 and October 2017, Paragon offered and sold digital tokens (“PRG tokens”) to be issued on a blockchain, or a distribution ledger (the “offering”) to raise capital to develop and implement its business plan to add blockchain technology to the cannabis industry and work towards legalization of cannabis… Read More

Penalties: N/A
Respondent: Don Warner Reinhard
Violation: The Commission’s complaint alleged that Reinhard and a co-defendant raised approximately $4.1 million from about 20 investors—primarily former professional football players who were plaintiffs in concussion-related litigation—through the sale of interests in two private investment funds… Read More

Penalties: $10,793,506.00
Respondent: Clarence Dean Alford
Violation: The Commission has filed an Unopposed Motion for Final Judgment Against Defendant Clarence Dean Alford (“Defendant”), requesting that the Court order disgorgement, prejudgment interest and civil penalties against Alford, and also restate permanent injunctive relief previously ordered by the Court… Read More

Penalties: $17,851,056.00
Respondent: Super Micro Computer, Inc.
Violation: The Commission determined that SMC, a producer of computer servers headquartered in California, engaged in improper accounting—prematurely recognizing revenue and understating expenses from at least fiscal year 2015 through FY 2017… Read More

Penalties: N/A
Respondent: John Alexander van Arem
Violation: The Commission’s complaint alleged, among other things, that van Arem offered and sold Thunderbird’s securities to investors from August 2016 through October 2018… Read More

Penalties: N/A
Respondent: Zachary J. Horwitz, et al.
Violation: According to the SEC’s complaint, Horwitz falsely claimed to have a track record of successfully selling movie rights to Netflix and HBO when, in fact, neither Horwitz nor 1inMM had ever sold any movie rights to, or done any business with, HBO or Netflix… Read More

Penalties: $2,332,148.60
Respondent: William C. Skelley; Sohin S. Shah
Violation: The SEC’s complaint, filed on September 26, 2018 in the Southern District of New York, alleged that Skelley, a co-founder and the CEO of Innovational Funding LLC, misappropriated more than $1 million of investor funds for his personal use… Read More

Penalties: N/A
Respondent: Evan Greebe
Violation: The SEC’s complaint, filed on December 17, 2015, alleged that Greebel assisted certain fraudulent conduct orchestrated by Shkreli… Read More

Penalties: N/A
Respondent: E*Hedge Securities Inc. f/k/a E*Hedge Inc. and Devon W. Parks
Violation: The Commission’s Amended Complaint alleged that, beginning at least as early as April 14, 2020, Respondents failed to produce books and records to the Commission’s Office of Compliance Inspections and Examination staff in the course of an examination… Read More

Penalties: N/A
Respondent: Christopher E. Knauth
Violation: This proceeding arises from wholesale failures by Christopher E. Knauth in conducting the fiscal year 2018 audit and quarterly reviews for the periods ended June 30, 2018, September 30, 2018, and March 31, 2019, for Issuer A on behalf of Audit Firm A… Read More

Click here to see the full list of SEC Enforcement Documents

Penalties: N/A
Respondent: The Alista Group, et al
Violation: IT IS ORDERED AND ADJUDGED pursuant to the Court’s Order dated March 2, 2021, default judgment is entered in favor of plaintiff and against The Alista Group, LLC and Luis M. Pineda Palacios… Read More

Penalties: $14,279.30
Respondent: David Saffron, et al.
Violation: The CFTC explains that it incurred these fees and costs when it prepared two show-cause motions and participated in three hearings, which all focused on drawing attention to and addressing the defendants’ contemptuous conduct… Read More

Penalties: $32,141,375.00
Respondent: David Gilbert Saffron a/k/a David Gilbert & Circle Society, Corp
Violation: The Commission’s well-pled allegations and evidence shows that Saffron and Circle Society violated: a. 7 U.S.C. § 6o(1)(A)-(B) and 17 C.F.R. § 32.4; b. 17 C.F.R. § 4.20(a)(1), (b), and (c); and c. 7 U.S.C. § 6m(1)… Read More

Penalties: $10,391,358.00
Respondent: Douglas Lien & Westend Investments
Violation: Lien violated 7 U.S.C. § 6b(a)(1)(A)-(C) from August 17, 2000 to the present by, among other things: making misrepresentations to his clients about trading their funds in futures contracts, the location of their funds, and why he did not return their funds as requested… Read More

Penalties: $1,178,180.00
Respondent: Aaron B. Butler, et al
Violation: During the relevant period, NCI, by and through its employee and principal, Butler, fraudulently solicited $294,545 from 70 members of the public to participate in one of two schemes concerning trading commodity interests in binary options, primarily involving foreign exchange traded currencies (“forex”), on the North American Derivatives Exchange (“Nadex”), a U.S.-based, retail-focused, online binary options exchange… Read More

Penalties: $846,405.58
Respondent: Glenn Olson
Violation: On October 23, 2019, the U.S. District Court for the Eastern District of New York found that during the Relevant Period several related persons and entities operating as a common enterprise (“Blue Bit Enterprise”) engaged in a fraudulent scheme involving binary options trading and a succeeding virtual currency scam that resulted in U.S. customers losing the aggregate sum of $846,405.58… Read More