Financial Enforcement Actions | Week of July 17 to July 23

Penalties: N/A
Respondent: Louis Carabini; Michael Carabini & Monex Credit Company; Monex Deposit Company; Newport Services Corporation
Violation: Monex Credit Company, Monex Deposit Company, Newport Services Corporation, Louis Carabini, and Michael Carabini (collectively, “Monex”) appeal from the district court’s grant of a preliminary injunction sought by the United States Commodity Futures Trading Commission (“CFTC”)… Read More

Penalties: $28,000.00
Respondent: Piper Sandler & Co. (f/k/a Sandler O’Neill & Partners, L.P.)
Violation: During the periods April 1, 2017 through June 30, 2018 and October 1, 2019 through December 31, 2019, Piper Sandler & Co. violated NYSE Arca Equities Rule 5190 and NYSE Arca Rule 9.5190-E by failing to submit required notifications to NYSE Arca in a timely manner, or at all, in connection with its participation in distributions of securities… Read More

Penalties: $5,000.00
Respondent: Piper Sandler & Co.
Violation: During the period January 1, 2020 through March 31, 2020, Piper Sandler & Co. violated Rule 104 of Regulation M and NYSE American Rule 5190(e) – Equities by failing to provide written notice to NYSE American of its intention to conduct syndicate covering transactions in connection with one security offering… Read More

Penalties: $28,000.00
Respondent: Piper Sandler & Co. (f/k/a Sandler O’Neill & Partners, L.P.)
Violation: During the periods April 1, 2017 through June 30, 2018 and October 1, 2019 through December 31, 2019, Piper Sandler & Co. violated NYSE Arca Equities Rule 5190 and NYSE Arca Rule 9.5190-E by failing to submit required notifications to NYSE Arca in a timely manner, or at all, in connection with its participation in distributions of securities… Read More

Penalties: $25,000.00
Respondent: Merrill Lynch, Pierce, Fenner & Smith, Inc. and BofA Securities, Inc
Violation: On one known occasion between January 1, 2018 and the present (the “Relevant Period”), Merrill Lynch, Pierce, Fenner & Smith, Inc. (“MLPFS”) violated NYSE Rule 122 (Orders with More than One Floor Broker) by maintaining orders for the account of the same principal with two different floor brokers in the same security that could execute at the same time and price… Read More

Penalties: $44,938.00
Respondent: Joshua Helmle & Integrity Brokerage Services Inc.
Violation: For four years, Respondent Joshua Helmle and the brokerage firm that he owned and operated, Respondent Integrity Brokerage Services, Inc., improperly allowed a person subject to a statutory disqualification to associate with the firm and to act as an unregistered representative… Read More

Penalties: N/A
Respondent: Robert C. Smith
Violation: In July 2021, Smith refused to provide on-the-record testimony pursuant to FINRA Rule 8210, thereby violating FINRA Rules 8210 and 2010… Read More

Penalties: N/A
Respondent: ICV Group, Inc
Violation: In July 2021, ICV Group refused to respond to a request for documents and information issued pursuant to FINRA Rule 8210, thereby violating FINRA Rules 8210 and 2010… Read More

Penalties: N/A
Respondent: Paramveer Singh
Violation: The Department of Enforcement did not meet its burden of proof that Respondent Paramveer Singh converted firm funds; misused firm funds; provided false or misleading information in a written response to a FINRA Rule 8210 request; or provided false or misleading on-the-record testimony under FINRA Rule 8210… Read More

Penalties: N/A
Respondent: Jason C. LaBelle
Violation: LaBelle refused to provide information or documents requested pursuant to FINRA Rule 8210, in violation of FINRA Rules 8210 and 2010… Read More

Penalties: $2,500.00
Respondent: Kenric L. Sexton
Violation: In June 2020, Sexton made negligent misrepresentations in an application to the Small Business Administration (SBA) seeking an Economic Injury Disaster Loan. Sexton thereby violated FINRA Rule 2010… Read More

Penalties: $5,000.00
Respondent: Timothy Ray Plant
Violation: Between October 2017 and January 2019, while associated with LPL, Plant participated in private securities transactions by placing trades in retirement accounts held at another member firm, without providing notice to LPL. Accordingly, Plant violated FINRA Rules 3280 and 2010… Read More

Penalties: $25,000.00
Respondent: D.H. Hill Securities, LLLP
Violation: Between August 2015 and December 2019, D.H. Hill sold eight private placement offerings claiming exemption from registration under Rule 506(b) of Regulation D, but without having established pre-existing, substantive relationships with the offerees prior to participating in those offerings… Read More

Penalties: N/A
Respondent: Alexander Vesneske
Violation: Respondent refused to provide on-the-record testimony pursuant to FINRA Rule 8210, in violation ofFINRA Rules 8210 and 2010… Read More

Penalties: N/A
Respondent: Luis Fernando Restrepo
Violation: From April 2016, through March 2018, in his capacity as Fusion’s AMLCO, Restrepo failed to reasonably establish and implement (i) an anti-money laundering (AML) compliance program reasonably designed to detect and cause the reporting of suspicious activity and (ii) a reasonably designed Customer Identification Program (CIP)… Read More

Penalties: N/A
Respondent: Enoch S. Booth
Violation: Booth failed to provide documents requested pursuant to FINRA Rule 8210. By virtue of this misconduct, Booth violated FINRA Rules 8210 and 2010… Read More

Penalties: $350,000.00
Respondent: Precision Securities LLC
Violation: From January 2017 through December 2018, Precision Securities failed to develop and implement an anti-money laundering (AML) program reasonably designed to achieve and monitor the firm’s compliance with the Bank Secrecy Act and the implementing regulations thereunder… Read More

Penalties: $432,570.00
Respondent: Alfa Laval Middle East Ltd; Alfa Laval Inc
Violation: Specifically, the apparent violations were committed between May 2015 and March 2016 when AL Middle East conspired with Dubai- and Iran-based companies to export Gamajet brand storage tank cleaning units from the United States to Iran. As a result of this conspiracy, AL Middle East caused its U.S.-based affiliate to indirectly export goods from the United States to Iran by falsely listing a Dubai-based company as the end-user on its export documentation… Read More

Penalties: $1,400,301.40
Respondent: Payoneer Inc
Violation: Payoneer agreed to remit $1,400,301.40 to settle its potential civil liability for 2,260 apparent violations of multiple sanctions programs. Payoneer processed payments for parties located in the Crimea region of Ukraine, Iran, Sudan, and Syria, and also processed payments on behalf of sanctioned persons on OFAC’s List of Specially Designated Nationals and Blocked Persons (“SDN List”)… Read More

Penalties: N/A
Respondent: George Heckler
Violation: The criminal charges against Heckler, in part, stem from the same misconduct alleged in the SEC’s complaint, filed in federal district court in Newark, NJ… Read More

Penalties: N/A
Respondent: OrangeHook, Inc
Violation: ORHK is delinquent in its periodic filings with the Commission and has repeatedly failed to meet its obligation to file timely periodic reports. On November 30, 2018, the Division of Corporation Finance sent a delinquency letter to ORHK’s corporate address, requesting compliance with its periodic filing requirements… Read More

Penalties: N/A
Respondent: Texas South Energy, Inc
Violation: TXSO 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 March 31, 2019… Read More

Penalties: $9,105.00
Respondent: Alan L. Alexander
Violation: These proceedings concern the conduct of Alan L. Alexander, a resident of Lewisville, Texas, who “tipped” material non-public information in 2018 to his relative and coworkers about a proposed acquisition by his then-employer… Read More

Penalties: $86,867.00
Respondent: Tan V. Kha
Violation: These proceedings concern the conduct of Tan V. Kha, a resident of Frisco, Texas, who was tipped material, non-public information in 2018 by a coworker about a proposed acquisition by his employer’s parent company… Read More

Penalties: N/A
Respondent: Charlie Abujudeh
Violation: According to the SEC’s complaint, filed today in the U.S. District Court for the Eastern District of New York, Abujudeh worked with others from August 2019 to at least September 2020 to fraudulently sell several microcap companies’ stock to investors by making misleading statements during high pressure sales calls and/or email promotions… Read More

Penalties: N/A
Respondent: Samuel J. Mancini & Outdoor Capital Partners, LLC
Violation: According to the SEC’s complaint, beginning in late 2019, the defendants raised approximately $11.5 million from at least 40 investors by selling membership units in an investment fund and short-term, high-interest loan contracts… Read More

Penalties: N/A
Respondent: Quantum Materials Corp
Violation: QTMM 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, 2019… Read More

Penalties: N/A
Respondent: Miguel Holguin
Violation: From at least May 2018 to October 2018 (the “relevant period”), Holguin acted as an unregistered broker in violation of Section 15(a) of the Exchange Act… Read More

Penalties: N/A
Respondent: Rahulkumar “Rahul” M. Patel
Violation: According to the SEC’s complaint, Patel organized a Connecticut company, DNA Lodging East Hartford LLC, to lease, renovate, and reopen a closed hotel located in East Hartford, Connecticut… Read More

Penalties: N/A
Respondent: Paul Hanson
Violation: The Commission’s complaint alleged that, from at least 2016 until August 2019, Hanson solicited customers for, and effected the sale of, the securities of QSA without registering independently as a broker or being affiliated with any registered broker… Read More

Penalties: N/A
Respondent: Executive Financial Services, Inc
Violation: The Commission’s complaint alleged that, from October 2016 until 2018, EFA solicited customers for, and effected the sale of, the securities of Wellington without registering independently as a broker or being affiliated with any registered broker… Read More

Penalties: $7,076,400.00
Respondent: Suneet Singal & First Capital Real Estate Investments, LLC; First Capital Real Estate Advisors LP; First Capital Real Estate Trust Inc
Violation: The SEC’s complaint, filed on December 13, 2019, alleged that Singal and his entities engaged in two separate frauds relating to two public companies, First Capital Real Estate Trust Inc. (the REIT), which was also charged in the complaint, and a business development company (BDC)… Read More

Penalties: $225,000.00
Respondent: Shannon Greene & Tandy Leather Factory, Inc
Violation: This matter involves accounting, financial reporting, and control failures by Tandy, a specialty leather retailer headquartered in Fort Worth, Texas. These deficiencies resulted in a multi-year restatement in Tandy’s financial statements concerning, among other things, inventory, net income and gross profit… Read More

Penalties: N/A
Respondent: Shaun Greenwald
Violation: On February 20, 2018, Greenwald pled guilty to one count of conspiracy to commit securities fraud, in violation of 18 U.S.C. § 371, and one count of conspiracy to defraud the United States, also in violation of 18 U.S.C. § 371, before the United States District Court for the District of New Jersey in United States v. Shaun Greenwald, Crim. No. 18-78 (D.N.J… Read More

Penalties: N/A
Respondent: Joy I. Kovar; Brent C. Kovar & Profit Connect Wealth Services, Inc
Violation: According to the SEC’s complaint, which was filed in the U.S. District Court for the District of Nevada and unsealed July 16, since at least May 2018 the defendants have raised investor funds through Profit Connect while assuring investors that their money would be invested in securities trading and cryptocurrencies based on recommendations made by an “artificial intelligence supercomputer… Read More

Penalties: N/A
Respondent: UBS Financial Services Inc.
Violation: This matter concerns UBS’s failure to adopt and implement written policies and procedures reasonably designed to prevent unsuitable investments in volatility-linked-exchangetraded products (“ETPs”) between January 2016 and January 2018 (the “Relevant Period”)… Read More

Click here to see the full list of SEC Enforcement Documents