Financial Enforcement Actions | Week of July 24 to July 30

Penalties: N/A
Respondent: Gray Television Inc. & Quincy Media Inc.
Violation: The United States of America, acting under the direction of the Attorney General of the United States, brings this civil action against Gray Television, Inc. (“Gray”) and Quincy Media, Inc. (“Quincy”) to enjoin Gray’s proposed acquisition of Quincy… Read More

Penalties: $0.00
Respondent: Richard Berry & Tate’s Auto Center of Winslow, Inc; Tates Automotive, Inc.; Tate Ford-Lincoln-Mercury, Inc.; and Tate’s Auto Center ofGallup, Inc.
Violation: The Complaint charges that Defendants participated in deceptive and unfair acts or practices in violation of Section 5 of the FTC Act, 15 U.S.C. § 45, and in acts and practices in violation of TILA, 15 U. S. C. §§ 1601-1666J, and its implementing Regulation Z, 12 C.F.R. Part 226, and the CLA, 15 U. S.C. §§ 1667-1667f, and its implementing Regulation M, 12 C.F.R. Part 213, in the advertising, sales, and financing of new and use motor vehicles… Read More

Penalties: N/A
Respondent: Gloria J. Willis
Violation: Willis refused to appear for on-the-record testimony that was requested pursuant to FINRA Rule 8210, in violation of FINRA Rules 8210 and 2010… Read More

Penalties: N/A
Respondent: Lydia S. Santiago
Violation: In 2012, on two occasions, Santiago used a pre-signed Letter of Authorization (LOA) for a customer to effect a liquidation of funds. By this conduct, Santiago violated FINRA Rule 2010. In addition, Santiago violated FINRA Rules 4511 and 2010 by causing Popular to create and maintain inaccurate books and records in violation of Section 17(a) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 17a-3 thereunder… Read More

Penalties: N/A
Respondent: Irma I. Salas
Violation: From May 2016 to December 2018, on at least seven occasions, Salas used a pre-signed Letter of Authorization (LOA) from two customers, who were married, to effect transfers of funds among their 10 accounts. By this conduct, Salas violated FINRA Rule 2010. In addition, Salas violated FINRA Rules 4511 and 2010 by causing Popular to create and maintain inaccurate books and records in violation of Section 17(a) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 17a-3 thereunder… Read More

Penalties: N/A
Respondent: Evelyn Batista
Violation: In July and August 2020, Batista made reckless misrepresentations in a loan application and loan agreement she submitted to the Small Business Administration (SBA) to obtain an Economic Injury Disaster Loan. Batista thereby violated FINRA Rule 2010… Read More

Penalties: $1,250,000.00
Respondent: CODA Markets. Inc. (f/k/a PDQ ATS. Inc.)
Violation: From July 14, 2011 through the present. CODA Markets provided its subscribers with direct market access (DMA) to multiple exchanges and unaffiliated ATSs through use of its market participant identifiers (MPIDs)… Read More

Penalties: $5,000.00
Respondent: Chelsie Marie Hovingh (n/k/a Chelsie Marie Jensen)
Violation: Hovingh impersonated a customer during one phone call with Firm A in violation of 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: $5,000.00
Respondent: Gilbert A. Kuta
Violation: From December 2017 through June 2018, Kuta exercised discretion without written authorization in customers’ accounts, in violation of NASD Rule 2510(b) and FINRA Rule 2010.. Read More

Penalties: N/A
Respondent: Edward Wooten; Lee S. Rose; John L. Krcil & Black Lion Investment Partners, Inc
Violation: The lawsuit, filed in the U.S. District Court for the Middle District of Georgia, alleges that Wooten, Rose, and Krcil, acting on behalf of Black Lion, misled investors about the nature and safety of investments being offered by promising that their funds would remain in a purported escrow account and earn lucrative returns without any risk of loss… Read More

Penalties: $115,000.00
Respondent: Weiming Frank HO & Integral Financial LLC
Violation: These proceedings concern a broker-dealer that repeatedly made unsuitable recommendations to certain of its retail customers. When a broker-dealer recommends an investment to its customers, it must determine, based on each customer’s investment profile at the time of a recommended transaction, that the recommended investment is suitable for the customer in light of, among other factors, the customer’s specific investment objectives, financial needs, risk tolerance, age, and investment time horizon… Read More

Penalties: $250,000.00
Respondent: Herbert J. Sims & Co Inc.
Violation: These proceedings arise out of HJS, a registered broker-dealer, making unsuitable recommendations of certain highly-complex and high-risk variable interest rate structured products (“VRSPs”) to certain of its retail brokerage customers from January 2015 through April 2018 (the “relevant period”)… Read More

Penalties: $250,000.00
Respondent: Paycom Software Inc.
Violation: This matter concerns violations of the federal securities laws in connection with Paycom’s books and records and internal accounting controls, which first attached in April 2014 when Paycom became a public company. Paycom has overstated reported recurring revenues for 2011 through 2020 as a result of it “reselling” services (i.e., billing clients for services for which they were already paying) during the period from 2011 through 2018. Certain of Paycom’s Client Relations Representatives (“CRRs”) – sales personnel who provide additional services to existing clients – identified instances where clients had been sold and were paying for a service offered by Paycom but were unaware that they had the service… Read More

Penalties: N/A
Respondent: ForeverGreen Worldwide Corporation
Violation: FVRG 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, 2018… Read More

Penalties: $299,340.92
Respondent: Coburn & Meredith Inc.
Violation: These proceedings arise out of breaches of fiduciary duty by Coburn & Meredith, a dually-registered investment adviser and broker-dealer, in connection with (1) fees received for advising clients to purchase and hold mutual fund share classes that paid fees pursuant to Rule 12b1 under the Investment Company Act of 1940 (“12b-1 fees”) instead of lower-cost available share classes that did not charge these fees; and (2) mark-ups on the rate of margin interest charged by Coburn & Meredith’s unaffiliated clearing broker (“Clearing Broker”) to its advisory clients as a result of advisory clients’ use of margin… Read More

Penalties: N/A
Respondent: Lupo Securities, LLC
Violation: According to the SEC’s complaint, as part of a 2016 partial tender offer for the common stock of Lockheed Martin Corp., Lupo, then an SEC-registered broker-dealer, tendered more Lockheed shares than it owned on a net basis, in violation of the short tender rule. Because partial tender offers are for less than all of the outstanding shares of a security, if the partial tender offer is oversubscribed, the offeror accepts shares pro rata… Read More

Penalties: $394,424.00
Respondent: Joseph Taub; Elazar Shmalo; Shaun Greenwald
Violation: The SEC’s complaint, as amended on April 26, 2018, alleged that Greenwald actively participated in a fraudulent market manipulation scheme in which co-defendants Joseph Taub and Elazar Shmalo utilized dozens of securities accounts at several brokerage firms to artificially influence the market prices of more than 2,500 exchange-traded securities… Read More

Penalties: $394,424.00
Respondent: Shaun Greenwald
Violation: The Commission’s complaint alleged that from at least January 2014 to December 9, 2016 Greenwald participated in a market manipulation scheme in which dozens of securities accounts at several brokerage firms were utilized to artificially influence the market prices of more than 2,500 exchange-traded securities… Read More

Penalties: $6,600,000.00
Respondent: Daniel Poston & Fifth Third Bancorp
Violation: The Order found that Fifth Third and Poston violated the antifraud, books and records, and internal accounting controls provisions of the securities laws. The Commission ordered the Respondents to pay a total of $6,600,000 in civil penalties to the Commission… Read More

Penalties: N/A
Respondent: Thomas Whittle, CPA
Violation: Respondent willfully violated PCAOB Rule 3500T, which requires members to maintain integrity when performing any professional service in connection with the preparation or issuance of any audit report, within the meaning of Section 4C(a)(3) of the Exchange Act and Rule 102(e)(1)(iii) of the Commission’s Rules of Practice… Read More

Penalties: N/A
Respondent: David Britt, CPA
Violation: Respondent willfully violated PCAOB Rule 3500T, which requires members to maintain integrity when performing any professional service in connection with the preparation or issuance of any audit report, within the meaning of Section 4C(a)(3) of the Exchange Act and Rule 102(e)(1)(iii) of the Commission’s Rules of Practice… Read More

Penalties: N/A
Respondent: Timothy Andrew Nemeckay, John Allen Logan, and Charles Vernon Whittington & Mine Shaft Brewing, LLC
Violation: According to the SEC’s complaint, filed in federal district court in Salt Lake City, Utah, recidivist Timothy Andrew Nemeckay, John Allen Logan, and Charles Vernon Whittington told investors that their funds would be used to develop the Mine Shaft Brewery, which included building a brewery, restaurant, and retail store… Read More

Penalties: $10,000.00
Respondent: St. Invest LLC. D/B/A Trade App
Violation: This matter involves Trade App’s failure to file with the Commission and to deliver to retail investors its Form CRS. Trade App was required to file its initial Form CRS with the Commission and to begin delivering its Form CRS to prospective and new retail investors, as applicable, by June 30, 2020… Read More

Penalties: $50,000.00
Respondent: Tradier Brokerage Inc.
Violation: This matter involves Tradier’s failure to file with the Commission and to deliver to retail investors its Form CRS. Tradier was required to file its initial Form CRS with the Commission and to begin delivering its Form CRS to prospective and new retail investors, as applicable, by June 30, 2020… Read More

Penalties: $10,000.00
Respondent: Bill Parker Agency
Violation: This matter involves BP Agency’s failure to file with the Commission and to deliver to retail investors its Form CRS. BP Agency was required to file its initial Form CRS with the Commission and to begin delivering its Form CRS to prospective and new retail investors, as applicable, by June 30, 2020… Read More

Penalties: $10,000.00
Respondent: Greentree Investment Services Inc.
Violation: This matter involves Greentree’s failure to file with the Commission and to deliver to retail investors its Form CRS. Greentree was required to file its initial Form CRS with the Commission and to begin delivering its Form CRS to prospective and new retail investors, as applicable, by June 30, 2020… Read More

Penalties: $10,000.00
Respondent: Birkelbach & Co.
Violation: This matter involves Birkelbach’s failure to file with the Commission and to deliver to retail investors its Form CRS. Birkelbach was required to file its initial Form CRS with the Commission and to begin delivering its Form CRS to prospective and new retail investors, as applicable, by June 30, 2020… Read More

Penalties: $25,000.00
Respondent: Capital Portfolio Management Inc.
Violation: This matter involves Capital Portfolio Management’s failure to file with the Commission and to deliver to retail investors its Form CRS. Capital Portfolio Management was required to file its initial Form CRS with the Commission and to begin delivering its Form CRS to prospective and new retail investors, as applicable, by June 30, 2020… Read More

Penalties: $25,000.00
Respondent: Altschuler James Stephen (d/b/a Altschuler Financial Services)
Violation: This matter involves Altschuler’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. Altschuler was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $25,000.00
Respondent: John A. Bysko Associates
Violation: This matter involves Bysko’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. Bysko was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $25,000.00
Respondent: Canton Hathaway LLC.
Violation: This matter involves Canton Hathaway’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. Canton Hathaway was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $25,000.00
Respondent: Medallion Wealth Advisors LLC.
Violation: This matter involves Medallion Wealth’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. Medallion Wealth was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $97,523.00
Respondent: Minot Deblois Advisors LLC.
Violation: This matter involves Minot Deblois’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. Minot Deblois was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $97,523.00
Respondent: Embree Financial Group Inc.
Violation: This matter involves Embree Financial Group’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. Embree Financial Group was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $25,000.00
Respondent: Madden Funds Management LTD.
Violation: This matter involves MFM’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. MFM was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $25,000.00
Respondent: Quantitative Asset Management LLC.
Violation: This matter involves QAM’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. QAM was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $25,000.00
Respondent: Summit Financial Advisors Inc.
Violation: This matter involves SFA’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. SFA was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $97,523.00
Respondent: Paratus Financial Inc.
Violation: This matter involves Paratus’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. Paratus was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $25,000.00
Respondent: Castle Wealth Planning LLC.
Violation: This matter involves Castle Wealth’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. Castle Wealth was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $25,000.00
Respondent: Harold Davidson & Associates Inc.
Violation: This matter involves Harold Davidson’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. Harold Davidson was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $10,000.00
Respondent: Sauberan & Company LLC.
Violation: This matter involves Sauberan’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. Sauberan was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $25,000.00
Respondent: Mighty Oak Strong America Investment Company
Violation: This matter involves Mighty Oak Strong America’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. Mighty Oak Strong America was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $97,523.00
Respondent: Cohen Klingenstein LLC.
Violation: This matter involves Cohen Klingenstein’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. Cohen Klingenstein was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $10,000.00
Respondent: Dynamic Trading Management LLC.
Violation: This matter involves Dynamic Trading Management’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. Dynamic Trading Management was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $10,000.00
Respondent: Eastside Financial Advisors 
Violation: This matter involves Eastside Financial’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. Eastside Financial was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $25,000.00
Respondent: O’Brien Greene & Co. Inc.
Violation: This matter involves O’Brien Greene’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. O’Brien Greene was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $50,000.00
Respondent: The Cavanaugh Group Inc.
Violation: This matter involves The Cavanaugh Group’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. The Cavanaugh Group was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $25,000.00
Respondent: Westbourne Investments Inc.
Violation: This matter involves Westbourne’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. Westbourne was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $25,000.00
Respondent: Carmel Capital Management LLC.
Violation: This matter involves Carmel Capital’s failure to file with the Commission and to deliver to retail investor clients its Form CRS. Carmel Capital was required to file its initial Form CRS with the Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and new retail investor clients, as applicable, by June 30, 2020… Read More

Penalties: $249,707.78
Respondent: Scott A. Doak
Violation: The Commission found that, from at least 2010 through 2014, William M. Apostelos (“Apostelos”) and companies he controlled violated the registration and anti-fraud provisions of the federal securities laws by conducting fraudulent, unregistered offers of securities and misappropriating investor funds to pay earlier investors and promoters, finance other businesses he and his wife owned, and pay his personal expenses. Doak, an emergency medicine physician, became a client of Apostelos no later than 2007… Read More

Penalties: N/A
Respondent: Brent Whiteley
Violation: The Commission’s complaint alleged, among other things, that Whiteley and others devised and carried out a fraud to improperly recognize approximately $100 million of revenue from transactions with a purportedly legitimate and unrelated customer of SAE, Alaskan Seismic Ventures, LLC (“ASV”). According to the complaint, the fraud had the effect of artificially and materially inflating SAE’s reported revenue by making it appear that ASV was a significant source of independent revenue… Read More

Penalties: N/A
Respondent: Steven A. Splain CPA.
Violation: The Commission’s complaint alleged, among other things, that Splain engaged in a fraudulent scheme to knowingly or recklessly manipulate Brixmor’s reported same property net operating income growth rate (“SP NOI Growth Rate”), a key non-GAAP measure used by investors to evaluate a REIT’s performance, for the reporting periods ending September 30, 2013 through September 30, 2015 (the “Relevant Period”)… Read More

Penalties: N/A
Respondent: Michael Mortimer
Violation: The Commission’s complaint alleged, among other things, that Mortimer engaged in a fraudulent scheme to knowingly or recklessly manipulate Brixmor’s reported same property net operating income growth rate (“SP NOI Growth Rate”), a key non-GAAP measure used by investors to evaluate a REIT’s performance, and aided and abetted others’ knowing or reckless material misrepresentations and omissions relating to that measure, for the reporting periods ending September 30, 2013 through September 30, 2015 (the “Relevant Period”)… Read More

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