Compliance.ai

December 2019 Enforcement Action Summary

FTC

1 Enforcement Document

$0.00 in Fines

Penalties: N/A
Respondent: EFFEN ADS, LLC, dba. ICLOUDWORX a Nevada limited liability company, JASON BRAILOW, individually and as a principal and co-owner of EFFEN ADS, LLC, BRANDON HARSHBARGER, individually and as a principal and co-owner of EFFEN ADS, LLC, and JASON WALKER,
Violation: The CAN-SPAM Act became effective on January 1, 2004, and has since remained in full force and effect. 155. Section 5(a)(1) of the CAN-SPAM Act, 15 U.S.C. § 7704(a)(1), states: “It is unlawful for any person to initiate the transmission, to a protected computer, of a commercial electronic mail message that contains, or is accompanied by, header information that is materially false or materially misleading.” 156. The CAN-SPAM Act defines “header information” as “the source, destination, and routing information attached to an electronic mail message, including the originating domain name and originating electronic mail address, and any other information that appears in the line identifying, or purporting to identify, a person initiating the message.” 15 U.S.C. § 7702(8)… Read More

SEC

11 Enforcement Documents

$58,861,899.00 in Fines

Penalties: $32,149,344.00
Respondent: Timothy J. Atkinson, et al
Violation: The final judgments provide that the disgorgement ordered against each defendant is to be offset by any disgorgement ordered against that defendant in the related case of Commodity Futures Trading Commission v. Timothy Joseph Atkinson, et al., Case No. 1:18-cv-23992-JEM. As to Atkinson and Passerino, the final judgments entered also order that the civil penalty amount ordered against each would be reduced by any penalty amount ultimately paid by that defendant in the CFTC action. The judgments also enjoin Atkinson, Passerino, and All In Publishing from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933; from violating the securities registration provisions of Section 5 of the Securities Act; and from marketing, offering or selling securities over the Internet or through other electronic means to persons other than themselves and members of their immediate families… Read More

Penalties: N/A
Respondent: Christopher S. Laws
Violation: The Securities and Exchange Commission (“Commission”) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 (“Exchange Act”) and Section 203(f) of the Investment Advisers Act of 1940 (“Advisers Act”) against Christopher S. Laws (“Respondent”)… Read More

Penalties: $400,000.00
Respondent: James V. Mazzo, et al
Violation: The SEC’s complaint, which was filed in 2012, alleged that Parker traded on material, nonpublic information concerning Advanced Medical Optics, Inc.’s upcoming tender offer by Abbott Laboratories, Inc. The complaint alleged that former Advanced Medical Optics’ Chief Executive Officer James V. Mazzo tipped his good friend, former baseball player Douglas V. DeCinces, who in turn tipped Parker and four other friends, each of whom traded on the information. Mazzo, DeCinces, and the four other alleged tippees previously settled with the Commission, and Parker’s settlement resolves the litigation in full… Read More

Penalties: N/A
Respondent: Benjamin Mekawy and Alan D. Seidel,
Violation: As alleged in the SEC’s complaint, broker-dealers are required to operate with a minimum amount of net capital, and must maintain and report the difference between certain assets and liabilities. Brokerdealers that are not in compliance with the net-capital rules must cease operations. The complaint alleges that Seidel, who knew the firm’s net-capital position was precarious, falsely represented to the broker-dealer’s outside accounting firm and to the staff of the SEC’s Office of Compliance Inspections and Examinations that loan proceeds were a capital infusion. It further alleges that Mekawy forged one of the broker-dealer’s account statements to inflate the broker-dealer’s cash position and knowingly concealed a substantial six-figure liability… Read More

Penalties: N/A
Respondent: Ryan K. Dunaske
Violation: The Securities and Exchange Commission (“Commission”) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) against Ryan K. Dunaske (“Dunaske” or “Respondent”)… Read More

Penalties: N/A
Respondent: Pinto-Thomaz, et al
Violation: Pinto-Thomaz, et al Pinto-Thomaz, Oujaddou, and Millul each agreed to settle with the SEC and consented to the entry of judgments permanently enjoining them from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, ordering Millul and Oujaddou liable for disgorgement of their ill-gotten trading profits, and ordering Pinto-Thomaz liable for disgorgement of a cash payment he received from Oujaddou, with the disgorgement for all three defendants deemed satisfied by orders of forfeiture entered in a parallel criminal action. Pinto-Thomaz, who was convicted after a trial, is serving a 14-month prison sentence. Oujaddou and Millul each pled guilty, and Millul is serving a 5-month prison sentence. In a separate administrative proceeding instituted on November 12, 2019, Pinto-Thomaz also consented to a bar from association with any nationally recognized statistical rating organization… Read More

Penalties: N/A
Respondent: Ulrik Debo
Violation: The complaint alleges that Debo planned to promote EVTP stock and pump and dump its shares for profit. Debo allegedly took the lead in coordinating the purchase and control of EVTP, including by contributing funds for its purchase, installing an acquaintance as the nominal CEO and nominal majority shareholder, retaining an attorney to assist in making the dormant shell “current,” and hiring a marketer for a promotional campaign. The complaint alleges that, once under Debo’s control, EVTP filed a quarterly report on November 25, 2019 that failed to disclose Debo’s control, rendering it materially misleading. The SEC filed its complaint before Debo and others were able to engage in promotional activity to “pump” EVTP’s stock… Read More

Penalties: N/A
Respondent: Robert A. Karmann, CPA
Violation: The Securities and Exchange Commission (“Commission”) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted against Robert A. Karmann (“Respondent” or “Karmann”) pursuant to Rule 102(e)(3)(i) of the Commission’s Rules of Practice… Read More

Penalties: $26,312,555.00
Respondent: Longn Corp. and Venkata S. Meenavalli,
Violation: The SEC charged Meenavalli with violations of the antifraud provisions of Section 10(b) of the Securities and Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder and Section 17(a) of the Securities Act of 1933. Meenavalli was also charged with violating the internal controls and books-and-records provisions of Section 13(b)(5) of the Exchange Act, falsifying accounting records in violation of Exchange Act Rule 13b2-1, lying to accountants in violation of Exchange Act Rule 13b2-2, and violating the certification provision of Exchange Act Rule 13a-14, and with aiding and abetting Longfin’s violations of the reporting, books-and-records, and internal controls provisions of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Exchange Act Rules 12b-20, 13a-1, 13a-11, and 13a-13… Read More

Click here to see the full list of SEC Enforcement Documents

Financial Enforcement Actions | Week of December 28 to January 03

FTC

1 Enforcement Document

$0.00 in Fines

SEC

11 Enforcement Documents

$58,861,899.00 in Fines

Asif Alam

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