Financial Enforcement Actions | Week of Feb 06 to Feb 12

Penalties: N/A
Respondent: JAMES COOKE & CHEMENCE, INC
Violation: COUNT I False or Misleading Representation In connection with the advertising, promotion, offering for sale, or sale of cyanoacrylates, Respondents have represented, directly or indirectly, expressly or by implication, that such cyanoacrylates, including the raw materials used to make such products, are all or virtually all made in the United States… Read More

Penalties: N/A
Respondent: Student Debt Relief Group, SDRG, Student Loan Relief Counselors, SLRC, StuDebt, and Capital Advocates Group
Violation: these companies tricked people into thinking they were affiliated with the Department of Education, charged illegal upfront fees for free government programs, and collected monthly fees they falsely claimed would be credited toward student loans… Read More

Penalties: $25,000.00
Respondent: JD Heiskell Holdings LLC
Violation: Pursuant to an offer of settlement in which JD Heiskell Holdings LLC (“JD Heiskell”) neither admitted nor denied the rule violations upon which the penalty is based, on February 4, 2021, a Panel of the Chicago Board of Trade (“CBOT”) Business Conduct Committee (“Panel”) found that on March 6, 2020, JD Heiskell executed an Exchange of Futures for Physical (“EFP”) transaction in the August 2021 Soymeal futures market… Read More

Penalties: $8,000.00
Respondent: SKANDINAVISKA ENSKILDA BANKEN AB
Violation: Pursuant to an offer of settlement Skandinaviska Enskilda Banken AB (“SEB”) presented at a hearing on February 4, 2021, in which SEB neither admitted nor denied the NYMEX rule violation upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“BCC”) found that, on September 29, 2020, SEB held a futures equivalent long position of 502 October 2020 Platinum Futures (“OCT20 PL”) contracts, which was 2 contracts, or .40%, over the standard expiration month position limit in OCT20 PL, which went into effect at the close of business on September 29, 2020… Read More

Penalties: $72,318.00
Respondent: Voloridge Investment Management LLC
Violation: The Panel found that Voloridge thereby violated CBOT Rule 562… Read More

Penalties: $40,000.00
Respondent: CORNERSTONE FUTURES LLC
Violation: Pursuant to an offer of settlement that Cornerstone Futures LLC (“Cornerstone”) presented at a hearing on February 4, 2021, in which Cornerstone neither admitted nor denied the rule violations, allegations or findings upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that during June 2019, Cornerstone submitted multiple block trades to the Exchange with inaccurate execution times and also failed to report block trades to the Exchange within the required time period following execution… Read More

Penalties: N/A
Respondent: Alexander William Schifter
Violation: Between September and December 2020, Schifter violated FINRA Rules 8210 and 2010 by failing to produce information and documents requested pursuant to FINRA Rule 8210, in connection with an investigation into whether, during Respondent’s employment with his FINRA member firm, he had improperly accessed the confidential or proprietary information of a non-FINRA registered investment bank with which he had been previously employed, in violation of the policies of his employer member firm… Read More

Penalties: $5,000.00
Respondent: Nathaniel Leigh Goldenberg
Violation: When Goldenberg voluntarily terminated from IAA to start his own registered investment advisor (RIA), he improperly retained new account forms containing nonpublic personal information of four IAA customers. The retention of information was in violation of
IAA’s policies and without customer knowledge and consent… Read More

Penalties: $5,000.00
Respondent: Steven R. Perlstein
Violation: Perlstein failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to supervise MVP’s SPE business. Perlstein also failed to reasonably investigate red flags that should have triggered scrutiny of the SPEs. Perlstein therefore violated NASD Rule 3010 and FINRA Rules 3110 and 2010… Read More

Penalties: $150,000.00
Respondent: Actinver Securities, Inc.
Violation: Actinver failed to have its Chief Executive Officer complete the firm’s Annual Certification Requirement in 2015 and 2017 in violation of FINRA Rules 3130(b) and 2010… Read More

Penalties: $7,500.00
Respondent: Jenny Xinfang Feng
Violation: From April 2017 to August 2020, Feng engaged in an unethical course of conduct and circumvented her firm’s policies and procedures by assisting an elderly customer to designate her and a colleague as beneficiaries on the customer’s variable annuity policy, misrepresenting their relationship with the customer to the annuity company, and attempting to conceal her conduct from her firm, thereby violating FINRA Rule 2010… Read More

Penalties: $7,500.00
Respondent: Wenru Liang
Violation: From April 2017 to August 2020, Liang engaged in an unethical course of conduct and circumvented her firm’s policies and procedures by assisting an elderly customer to designate her and a colleague as beneficiaries on the elderly customer’s variable annuity policy, misrepresenting their relationship with the customer to the annuity company, and attempting to conceal her conduct from her firm, thereby violating FINRA Rule 2010… Read More

Penalties: $193,998.48
Respondent: Triad Advisors, LLC
Violation: Finally, from June 2015 through December 2017, Triad failed to timely file 19 Rule 4530 disclosures in connection with customer-related arbitrations and written customer complaints. In addition, in six instances, Triad failed to timely update its registered representatives’ Uniform Application for Securities Industry Registration or Transfer Form (Form U4) to disclose reportable events… Read More

Penalties: $25,000.00
Respondent: J.H. Darbie & Co., Inc.
Violation: During the period between February 2013 and January 2019, the firm submitted Reportable Order Events (ROEs) to the Order Audit Trail System (OATS) that contained inaccurate, incomplete, or improperly formatted data… Read More

Penalties: N/A
Respondent: Valerie Idarraga Ceballos
Violation: Ceballos refused to appear for on-the-record testimony requested pursuant to FINRA Rule 8210, in violation of FINRA Rules 8210 and 2010… Read More

Penalties: N/A
Respondent: Autumn Jordan
Violation: Jordan 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: $27,417.03
Respondent: Charles Bonilla
Violation: Between December 2015 and December 2017, while associated with David Lerner Associates, Bonilla recommended that his customers invest in energy sector securities without having a reasonable basis to believe those investments were suitable. Due to Bonilla’s failure to conduct reasonable diligence, there were potential risks and costs of the investments, among other things, that Bonilla did not adequately understand. Accordingly, Bonilla violated FINRA Rules 2111 and 2010… Read More

Penalties: $5,000.00
Respondent: Andrew D. Perona
Violation: In March 2019, after resigning from W&R, Perona took customers’ nonpublic personal information (NPI) from W&R and provided it to another member firm where he planned to work (New Firm), without W&R’s knowledge or consent. As a result, Perona caused W&R to violate the SEC’s Regulation S-P: Privacy of Consumer Financial Information and Safeguarding Personal Information (Regulation S-P), and in so doing, Perona violated FINRA Rule 2010… Read More

Penalties: $5,000.00
Respondent: King Wei Mah
Violation: In March 2019, after resigning from W&R, Mah took customers’ nonpublic personal information (NPI) from W&R and provided it to another member firm where he planned to work (New Firm), without W&R’s knowledge or consent. As a result, Mah caused W&R to violate the SEC’s Regulation S-P: Privacy of Consumer Financial Information and Safeguarding Personal Information (Regulation S-P), and in so doing, Mah violated FINRA Rule 2010… Read More

Penalties: $65,000,000.00
Respondent: Robinhood Financial, LLC
Violation: On December 17, 2020, the Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Section 8A of the Securities Act of 1933 and Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order (“Order”)1 against Robinhood Financial, LLC (the “Respondent”)… Read More

Penalties: N/A
Respondent: Isaiah L. Goodman
Violation: According to the SEC’s complaint, from at least September 2018 to November 2020, Goodman, doing business through Becoming Financial Advisory Services, LLC, stole more than $2.25 million from at least 20 advisory clients… Read More

Penalties: $2,748,491.00
Respondent: GREGORY J. MITCHELL; CORY D. WILLIAMS & SIGNATOR INVESTORS, INC.
Violation: Signator and Mitchell failed reasonably to supervise James R. Glover (“Glover”) and Williams, former registered representatives and investment adviser representatives at Signator with a view of preventing and detecting Glover’s and Williams’ violations of the federal securities laws… Read More

Penalties: N/A
Respondent: David Hu
Violation: According to the SEC’s complaint, from October 2013, Hu orchestrated multiple frauds on IIG’s investment advisory clients. As alleged, Hu grossly overvalued the assets in IIG’s flagship hedge fund, resulting in the fund paying inflated fees to IIG, some of which went to Hu personally… Read More

Penalties: N/A
Respondent: ANTHONY KILLARNEY
Violation: Respondent will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors, including, but not limited to, compliance with the Commission’s order and payment of any or all of the following… Read More

Penalties: $17,000,000.00
Respondent: Covia Holdings Corp. and Fairmount Santrol Holdings Inc. now known as Bison Merger Sub I, LLC
Violation: On December 8, 2020, the Commission issued an Order Instituting Cease-and-Desist Proceedings, Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order (“Order”) against Covia Holdings Corp. and Fairmount Santrol Holdings Inc. now known as Bison Merger Sub I, LLC (collectively, the “Respondents”)… Read More

Penalties: $170,000,000.00
Respondent: BlueCrest Capital Management Limited
Violation: On December 8, 2020, the Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Section 8A of the Securities Act of 1933 and Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order (“Order”) against BlueCrest Capital Management Limited (“BlueCrest” or “Respondent”)… Read More

Penalties: $663,236.00
Respondent: GREGORY J. MITCHELL; CORY D. WILLIAMS & SIGNATOR INVESTORS, INC.
Violation: Signator and Mitchell failed reasonably to supervise James R. Glover (“Glover”) and Williams, former registered representatives and investment adviser representatives at Signator with a view of preventing and detecting Glover’s and Williams’ violations of the federal securities laws. While associated with Signator, from approximately May 1998 through May 2012, Glover conducted an offering fraud that defrauded approximately 125 Signator advisory clients and brokerage customers of approximately $13.5 million by soliciting them to invest in Colonial Tidewater Realty Income Partners, LLC (“CTRIP”), a security not approved for sale by Signator’s representatives… Read More

Penalties: $2,680,484.00
Respondent: Daniel Dirk Coddington, et al.
Violation: The SEC’s complaint filed on December 12, 2013, alleged that Coddington defrauded investors by soliciting investments in a purported trading program involving Collateralized Mortgage Obligations (CMOs) that Coddington told investors would produce annual returns ranging from 250% to 475%… Read More

Penalties: N/A
Respondent: Derek Payne Burcham
Violation: Respondent will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors, including, but not limited to, the satisfaction of any or all of the following… Read More

Penalties: $65,000.00
Respondent: Daniel Sholom Frishberg
Violation: On March 25, 2011, the Commission filed and settled a civil action against Frishberg. The complaint alleged that Frishberg authorized a DFFS representative to recommend the purchase BizRadio promissory notes to DFFS clients, even though BizRadio’s poor financial condition made it unlikely the note obligations would be met… Read More

Penalties: $50,000.00
Respondent: Arrayit Corporation and Rene Schena
Violation: The SEC’s complaint alleges that, in March and April 2020, Arrayit falsely stated to investors that it had developed a COVID-19 blood test… Read More

Penalties: $1,589,926.43
Respondent: Mancera, S.C., Alejandro Valdez Mendoza, C.P., and Angel Radames Corral Nieblas, C.P.
Violation: The Division of Enforcement (“Division”) has requested an extension of time until August 31, 2021 to submit a Proposed Plan of Distribution under Rule 1101(a) of the Commission’s Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1101(a)… Read More

Penalties: $185,787.08
Respondent: WINSLOW, EVANS & CROCKER, INC.,
Violation: Respondent willfully violated Section 206(2) of the Advisers Act, which makes it unlawful for any investment adviser, directly or indirectly, to “engage in any transaction, practice or course of business which operates as a fraud or deceit upon any client or prospective client… Read More

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