Financial Enforcement Actions | Week of Apr 24 to Apr 30

Penalties: $140,000.00
Respondent: Nationwide Equities Corporation
Violation: NWEC is a mortgage broker and mortgage lender that offers and provides mortgage loans, primarily jumbo reverse mortgage loans and Home Equity Conversion Mortgage loan (HECMs)… Read More

Penalties: $25,000.00
Respondent: Altshuler Shaham
Violation: Pursuant to an offer of settlement in which Altshuler Shaham neither admitted nor denied the rule violation upon which the penalty is based, on April 22, 2021, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that at the close of business on June 8, 2020, Altshuler held a total futures equivalent long position of 13,197 Wheat futures contracts, which was 1,193 contracts (9.94%) over the all-month position limit of 12,000 contracts… Read More

Penalties: $85,000.00
Respondent: Christopher McGrath
Violation: Pursuant to an offer of settlement in which Christopher McGrath neither admitted nor denied the rule violations upon which the penalty is based, on April 22, 2021, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that on September 11, 2018, October 18, 2018, November 8, 2018, and January 4, 2019, McGrath, a broker in the Eurodollar options on futures pit, noncompetitively traded customer orders opposite other brokers within the same broker association without openly and competitively bidding or offering the orders in the pit… Read More

Penalties: $75,000.00
Respondent: Michael Scott Arenson
Violation: Pursuant to an offer of settlement in which Michael Scott Arenson neither admitted nor denied the rule violations upon which the penalty is based, on April 22, 2021, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that on October 18, 2018, and January 4, 2019, Arenson, a broker in the Eurodollar options on futures pit, non-competitively traded customer orders opposite other brokers within the same broker association without openly and competitively bidding or offering the orders in the pit… Read More

Penalties: $40,000.00
Respondent: Thomas Hessling
Violation: Pursuant to an offer of settlement in which Thomas Hessling neither admitted nor denied the rule violations upon which the penalty is based, on April 22, 2021, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that on September 11, 2018, and November 8, 2018, Hessling, a broker in the Eurodollar options on futures pit, non-competitively traded customer orders opposite other brokers within the same broker association without openly and competitively bidding or offering the orders in the pit… Read More

Penalties: $15,000.00
Respondent: Gaston Berto
Violation: Pursuant to an offer of settlement in which Gaston Berto (“Berto”) neither admitted nor denied the rule violation upon which the penalty is based, on April 22, 2021, a Panel of the Chicago Board of Trade Business Conduct Committee (“Panel”) found that on multiple dates between June 25, 2019, and September 18, 2019, Berto executed numerous transactions in September 2019 and December 2019 E- mini Dow futures contracts for accounts over which he maintained control where there was common beneficial ownership on both sides of the transactions… Read More

Penalties: $15,000.00
Respondent: Dairy America Inc.
Violation: Pursuant to an offer of settlement in which DairyAmerica Inc. (“DairyAmerica”) neither admitted nor denied the rule violation or factual findings upon which the penalty is based, on April 22, 2021, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that at the close of trading on February 5, 2020, DairyAmerica held a net futures equivalent short position of 1,035.641 April 2020 CME Non-fat Dry Milk Futures (“NDM”) contracts, which exceeded the single month position limit by 35.641 contracts, or 3.56%. On the following trade date, February 6, 2020, prior to realizing it was over the limit, DairyAmerica increased its April 2020 NDM position to 1,060.641 short April 2020 NDM contracts, or 6.064% over the single month position limit… Read More

Penalties: $30,000.00
Respondent: DairyAmerica Inc
Violation: Pursuant to an offer of settlement in which DairyAmerica Inc. (“DairyAmerica”) neither admitted nor denied the rule violation or factual findings upon which the penalty is based, on April 22, 2021, a Panel of the Chicago Mercantile Exchange (“CME”) Business Conduct Committee (“Panel”) found that at the close of trading on October 29, 2020, DairyAmerica held a net futures equivalent short position of 1,055.221 December 2020 CME Non-fat Dry Milk Futures (“NDM”) contracts, which exceeded the single month position limit by 55.221 contracts, or 5.52%. On the following trade date, October 30, 2020, prior to realizing it was over the limit, DairyAmerica increased its December 2020 NDM position to 1,082.221 short December 2020 NDM contracts, 82.221 contracts or 8.22% over the single month position limit… Read More

Penalties: $500.00
Respondent: JOSHUA MURPHY (JXM)
Violation: On numerous dates in February 2021, Joshua Murphy violated social distancing and face shield guidelines after repeated warnings by Exchange staff… Read More

Penalties: $550,000.00
Respondent: Laurence I. Balter & Oracle Investment Research
Violation: On May 26, 2017, the Commission issued an Order Making Findings and Imposing Remedial Sanctions and a Cease-and-Desist Order Pursuant to Section 8A of the Securities Act of 1933, Section 21C of the Securities Exchange Act of 1934, Sections 203(f) and 203(k) of the Investment Advisers Act of 1940, and Sections 9(b) and 9(f) of the Investment Company Act of 1940 (the “Order”) against Laurence I. Balter d/b/a Oracle Investment Research (the “Respondent”)… Read More

Penalties: N/A
Respondent: Cyclone Power Technologies, Inc; Ecolocap Solutions, Inc
Violation: ECOS has failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder because it has not filed any periodic reports with the Commission since the period ended September 30, 2017… Read More

Penalties: N/A
Respondent: MARK J. AHN
Violation: The U.S. District Court for the District of Massachusetts Today Entered a Partial Judgment in a Previously-Filed SEC Case Charging Oregon Resident Mark Ahn with Engaging in Insider Trading in the Securities of a Massachusetts-Based Pharmaceutical Company, Dimension Therapeutics, Inc., in Advance of an August 2017 Merger Announcement… Read More

Penalties: $222,517.00
Respondent: Rahsaan King & Students of Strength, Inc
Violation: The SEC’s complaint alleges that during 2017 and 2018, Students of Strength raised over $1 million from more than twenty investors through the sale of common stock and convertible notes. As alleged, King described the company to potential investors as a thriving online tutoring business that connected college student tutors with student customers, and represented that the company needed outside investment to grow and meet the high demand for its services… Read More

Penalties: $25,000.00
Respondent: Fortem Resources Inc.
Violation: In July 2019, Fortem violated Rule 12b-25 by filing a Form 12b-25 with the Commission in which Fortem failed to disclose why, in sufficient detail under the circumstances presented, its first-quarter, fiscal year (“FY”) 2020 Form 10-Q could not be timely filed. Fortem’s Form 12b-25 also failed to acknowledge anticipated, significant changes in Fortem’s results of operations for the first quarter of FY2020, compared with Fortem’s operating results in the first quarter of FY2019, and to provide an explanation of the changes, as required under the rule… Read More

Penalties: $25,000.00
Respondent: Trutankles Inc.
Violation: In August 2019, TruTankless violated Rule 12b-25 by filing a Form 12b-25 with the Commission in which TruTankless failed to disclose why, in sufficient detail under the circumstances presented, its second-quarter, fiscal year (“FY”) 2019 Form 10-Q could not be timely filed. TruTankless’s Form 12b-25 also failed to acknowledge anticipated, significant changes in TruTankless’s results of operations for the second quarter of FY2019, compared with TruTankless’s operating results in the second quarter of FY2018, and to provide an explanation of the changes, as required under the rule… Read More

Penalties: $25,000.00
Respondent: ShiftPixy Inc.
Violation: In July 2019, ShiftPixy violated Rule 12b-25 by filing a Form 12b-25 with the Commission in which ShiftPixy failed to disclose why, in sufficient detail under the circumstances presented, its third-quarter, fiscal year (“FY”) 2019 Form 10-Q could not be timely filed. ShiftPixy’s Form 12b-25 also failed to acknowledge anticipated, significant changes in ShiftPixy’s results of operations for the third quarter of FY2019, compared with ShiftPixy’s operating results in the third quarter of FY2018, and to provide an explanation of the changes, as required under the rule… Read More

Penalties: $50,000.00
Respondent: Asta Funding Inc.
Violation: In May 2020, Asta violated Rule 12b-25 by filing a Form 12b-25 with the Commission in which Asta failed to disclose why, in sufficient detail under the circumstances presented, its second-quarter, fiscal year (“FY”) 2020 Form 10-Q could not be timely filed. Asta’s Form 12b-25 also failed to acknowledge anticipated, significant changes in Asta’s results of operations for the second quarter of FY2020, compared with Asta’s operating results in the second quarter of FY2019, and to provide an explanation of the changes, as required under the rule… Read More

Penalties: $25,000.00
Respondent: IGEN Networks Corp
Violation: In May 2020, Igen violated Rule 12b-25 by filing a Form 12b-25 with the Commission in which Igen failed to disclose why, in sufficient detail under the circumstances presented, its fiscal year (“FY”) 2019 Form 10-K could not be timely filed. Igen’s Form 12b-25 also failed to acknowledge anticipated, significant changes in Igen’s results of operations for the fourth quarter of FY2019, compared with Igen’s operating results in the fourth quarter of FY2018, and to provide an explanation of the changes, as required under the rule… Read More

Penalties: $50,000.00
Respondent: ROKK3R Inc.
Violation: In November 2019, Rokk3r violated Rule 12b-25 by filing a Form 12b-25 with the Commission in which Rokk3r failed to disclose why, in sufficient detail under the circumstances presented, its third-quarter, fiscal year (“FY”) 2019 Form 10-Q could not be timely filed. Rokk3r’s Form 12b-25 also failed to acknowledge anticipated, significant changes in Rokk3r’s results of operations for the third quarter of FY2019, compared with Rokk3r’s operating results in the third quarter of FY2018, and to provide an explanation of the changes, as required under the rule… Read More

Penalties: $25,000.00
Respondent: Daniels Corporate Advisory Company Inc.
Violation: In July 2019, Daniels violated Rule 12b-25 by filing a Form 12b-25 with the Commission in which Daniels failed to disclose why, in sufficient detail under the circumstances presented, its second-quarter, fiscal year (“FY”) 2019 Form 10-Q could not be timely filed. Daniels’ Form 12b-25 also failed to acknowledge anticipated, significant changes in Daniels’ results of operations for the second quarter of FY2019, compared with Daniels’ operating results in the second quarter of FY2018, and to provide an explanation of the changes, as required under the rule… Read More

Penalties: $50,000.00
Respondent: HQDA Elderly Life Network Inc.
Violation: In November 2019 and again in February 2020, HQDA violated Rule 12b-25 by filing a Form 12b-25 with the Commission in which HQDA failed to disclose why, in sufficient detail under the circumstances presented, its Form 10-Q could not be timely filed. In both instances, HQDA’s Form 12b-25 also failed to acknowledge anticipated, significant changes in HQDA’s results of operations for the fiscal quarter covered by the Form 10-Q compared with HQDA’s operating results in the same quarter of the prior fiscal year, and to provide an explanation of the changes, as required under the rule… Read More

Penalties: N/A
Respondent: Jonathan P. Maroney & Harbor City Capital Corp
Violation: According to the SEC’s complaint, which was filed in federal court in the Middle District of Florida, since about May 2015, Maroney and his companies raised at least $17.1 million from more than 100 investors in a series of fraudulent securities offerings… Read More

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Penalties: $1,276,141.90
Respondent: O.N. Equity Sales Company, Inc.
Violation: From March 2014 through September 2017, ONESCO failed to establish and maintain a supervisory system, and failed to establish, maintain, and enforce written supervisory procedures, that were reasonably designed to supervise the sale of variable annuities… Read More

Penalties: $20,000.00
Respondent: Gary Len Wells
Violation: At all times relevant to this matter, the written supervisory procedures (WSPs) of both WFA and WFAFN prohibited brokers from accepting a bequest from a non-family member. From December 4, 2014 through January 22, 2016, Wells circumvented these procedures by accepting three bequests from the estate of an elderly customer. As a result of the foregoing, Wells violated FINRA Rule 2010… Read More

Penalties: $5,000.00
Respondent: Ronald V. Pullman
Violation: Pullman violated Article V, Section 2(c) of the FINRA By-Laws and FINRA Rules 1122 and 2010 for his willful failure to timely disclose six state regulatory actions and orders entered against him on his Uniform Application for Securities Industry Registration or Transfer (Form U4)… Read More

Penalties: $5,000.00
Respondent: Paul A. Spero
Violation: Between August 2017 and August 2018, Spero exercised discretion without written authorization in approximately 70 customer accounts, in violation of NASD Rule 2510(b) and FINRA Rule 2010… Read More

Penalties: $5,000.00
Respondent: Constantinos Maniatis
Violation: Between May 4, 2018, and February 27, 2019, while associated with Morgan Stanley, Maniatis exercised discretion in seven customer accounts despite the fact that Morgan Stanley no longer permitted such discretionary trading. Several of the transactions at issue involved municipal securities. Based on the foregoing conduct, Maniatis violated NASD Rule 2510(b), FINRA Rule 2010, and MSRB Rule G-17… Read More

Penalties: $17,500.00
Respondent: Kevin D. Barton
Violation: From January 2017 through November 2018, Barton engaged in an outside business activity without providing prior written notice to his firm in violation of FINRA Rules 3270 and 2010. Between June 2016 and May 2019, Barton exercised discretion in four customers’ accounts without written authorization in violation of NASD Rule 2510(b) and FINRA Rules 3260(b) and 2010). And, between June 2016 and May 2019, in the same four customers’ accounts, Barton mismarked approximately 80 trades as “unsolicited” in violation of FINRA Rules 4511 and 2010… Read More

Penalties: $5,000.00
Respondent: Cynthia Kay Whitman
Violation: In August 2018, Whitman accepted a $125,000 loan from her firm customer without providing prior notice to, or obtaining prior written approval from, Edward Jones, her member firm, in violation of FINRA Rules 3240 and 2010… Read More

Penalties: N/A
Respondent: Sun Hyung Kim
Violation: Between June 1, 2018 and June 19, 2019 (Relevant Period), Kim effected 162 unauthorized transactions in the brokerage accounts of one Kayan customer. In response to a FINRA Rule 8210 Request, Kim falsely stated that he had received authorization from the customer for these transactions. Kim also caused Kayan to maintain inaccurate books and records by inaccurately describing the transaction orders for the customer as “unsolicited… Read More

Penalties: $2,132,174.00
Respondent: SAP SE
Violation: These violations arose from SAP’s exportation of software and related services from the United States to companies in third countries with knowledge or reason to know the software or services were intended specifically for Iran, as well as from the sale of cloud-based software subscription services accessed remotely through SAP’s cloud businesses in the United States to customers that made the services available to their employees in Iran… Read More

Penalties: $34,328.78
Respondent: MoneyGram Payment Systems, Inc
Violation: MoneyGram provided services to blocked individuals incarcerated in U.S. federal prisons without a license from OFAC, processed transactions on behalf of an additional blocked person, and processed transactions for individuals who initiated commercial transactions involving Syria… Read More

Penalties: $2,166,502.80
Respondent: MoneyGram Payment Systems, Inc & SAP SE
Violation: MoneyGram agreed to remit $34,328.78 to settle its potential civil liability for 359 apparent violations of multiple sanctions programs. MoneyGram provided services to blocked individuals incarcerated in U.S. federal prisons without a license from OFAC, processed transactions on behalf of an additional blocked person, and processed transactions for individuals who initiated commercial transactions involving Syria… Read More

Penalties: $20,000,000.00
Respondent: VIVINT Smart Home Inc.
Violation: The Complaint charges that Defendant participated in acts or practices in violation of Section 5 of the FTC Act, 15 U.S.C. § 45, the FCRA, 15 U.S.C. §§ 1681–1681x, and the Duties Regarding the Detection, Prevention, and Mitigation of Identity Theft (“Red Flags Rule”), 16 C.F.R. § 681, issued pursuant to Section 615(e) of the FCRA, 15 U.S.C. §1681m(e)… Read More

Penalties: N/A
Respondent: Casey’s General Stores, Inc; Buck’s Intermediate Holdings, LLC
Violation: The Commission’s Complaint alleges that the Acquisition, if consummated, would violate Section 7 of the Clayton Act, as amended, 15 U.S.C. § 18, and that the Acquisition agreement constitutes a violation of Section 5 of the Federal Trade Commission Act, as amended, 15 U.S.C. § 45, by substantially lessening competition for the retail sale of gasoline in seven local markets in Nebraska and Iowa, and by substantially lessening competition for the retail sale of diesel fuel in four local markets in Nebraska… Read More