Financial Enforcement Actions | Week of June 05 to June 11

Penalties: N/A
Respondent: Truist Bank, as Successor to SunTrust Bank, Atlanta, Georgia
Violation: on November 19, 2019, the Board of Governors of the Federal Reserve System (“Board of Governors”) issued a CONSENT ORDER against SunTrust Bank (“SunTrust Bank”), Atlanta, Georgia (FRB Docket No. 19-028-B-SM) (the “CONSENT ORDER”), for violations of section 5(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)(1), pursuant to sections 8(b)(1), (2), and (6) of the Federal Deposit Insurance Act (“FDI Act”), 12 U.S.C. §§ 1818(b)(1), (2), and (6)… Read More

Penalties: $485,300.00
Respondent: Jiongsheng Zhao
Violation: Zhao entered Spoof Orders either to intentionally send a false signal to the market that he actually wanted to buy or sell the number of contracts specified in the Spoof Orders, or while recklessly disregarding the fact that entering his spoof orders would send such a false signal—a signal that injected false information about supply and demand into the market that could affect market activity… Read More

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

Penalties: $5,000.00
Respondent: Peter Bruce Suyama
Violation: In April 2019, while associated with LPL, Suyama violated FINRA Rules 3280 and 2010 by participating in a private securities transaction involving a purchase of $50,000 in preferred shares of a bio-technology company without providing prior written notice to or obtaining the firm’s approval for the transaction… Read More

Penalties: $10,000.00
Respondent: Scott S. Niekamp
Violation: From June 2011 to August 2017, Niekamp violated FINRA Rules 3270 and 2010 by engaging in two outside business activities without providing prior written notice to NMIS. Niekamp also violated FINRA Rules 3240 and 2010 when he made two loans totaling $450,000 to a firm customer without notifying, or obtaining prior approval from, NMIS… Read More

Penalties: $1,391,618.75
Respondent: G1 Execution Services, LLC
Violation: During the period January 1, 2013 through January 31, 2016, the firm failed to provide best execution to 41,505 orders from its broker-dealer clients on behalf of their customers1in OTC securities by failing to use reasonable diligence to ascertain the best market for the subject securities and failing to buy or sell in such market so that the resultant prices to the customers were as favorable as possible under prevailing market conditions… Read More

Penalties: $30,000.00
Respondent: Alpine Securities Corporation
Violation: Between October 10, 2017 and April 10, 2018 and between August 27 and August 31, 2018, Respondent: (a) submitted inaccurate data to FINRA’s Order Audit Trail System (OATS) in 35 Reportable Order Events (ROEs) of 56 sampled for review, in violation of FINRA Rules 7450 and 2010; and (b) failed to report to the Over-the-Counter Reporting Facility (OTCRF) the riskless portion of a riskless-principal transaction in 15 transactions out of 50 sampled for review, in violation of FINRA Rule 6622… Read More

Penalties: $10,000.00
Respondent: Thomas Clark Cleary
Violation: From July 2017 through August 2019, while associated with UBS and RBC, Cleary engaged in an outside business activity by serving as the executor of his customer’s estate without providing prior written notice to either UBS or RBC. As a result, Cleary violated FINRA Rules 3270 and 2010. In addition, during the period from July 2017 through January 2019, Cleary circumvented UBS policy by failing to notify the firm that he was beneficiary of the same customer’s estate and taking steps to conceal from UBS his beneficiary status. As a result, Cleary violated FINRA Rule 2010… Read More

Penalties: $20,000.00
Respondent: Titan Securities
Violation: In April 2017, a registered representative associated with Titan Securities disclosed to the firm that he intended to engage in the sale of a product away from the firm, for compensation, through his previously disclosed outside business activity (OBA). Titan assumed the disclosure related to a previously disclosed OBA and failed to reasonably review this disclosure and evaluate whether the activity was properly characterized as an OBA or whether it should be treated as outside securities activity subject to the requirements of Rule 3280. By reason of the foregoing, Titan Securities violated FINRA Rules 3270.01 and 2010… Read More

Penalties: N/A
Respondent: Elizabeth Ann Sollars
Violation: In connection with FINRA’s investigation into allegations that she misappropriated insurance customer premium payments, Respondent Elizabeth Ann Sollars failed to provide information and documents and failed to appear and provide testimony to FINRA requested pursuant to FINRA Rule 8210. As a result, Sollars violated FINRA Rules 8210 and 2010… Read More

Penalties: $5,000.00
Respondent: Matthew G. Zanowiak
Violation: In April 2019, Zanowiak exercised discretion without written authorization in 15 customer accounts, in violation of NASD Rule 2510(b) and FINRA Rule 2010… Read More

Penalties: $11,417.00
Respondent: David G. Martin
Violation: This matter involves insider trading in the securities of The KeyW Holding Corporation (“KeyW”) by David G. Martin in advance of the April 22, 2019 public announcement that Jacobs Engineering Group Inc. (“Jacobs”) had agreed to acquire KeyW in an $11.25 per share all-cash tender offer transaction… Read More

Penalties: N/A
Respondent: Bingqing Yang
Violation: The Commission’s complaint alleged that from 2007 until at least 2014, Yang, through the Luca Entities, engaged in a fraudulent scheme targeting the Chinese American community as well as investors in Asia to invest in the unregistered offerings of a series of investment funds controlled by Yang… Read More

Penalties: $333,971.00
Respondent: Feltl Advisors LLC
Violation: First, from at least January 2014, Feltl purchased, recommended, or held for advisory clients mutual fund share classes that resulted in its affiliated broker receiving fees pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”) instead of lower-cost share classes of the same funds that were available to clients… Read More

Penalties: N/A
Respondent: Larry B. Brodman; Anthony Nicolosi & Property Income Investors LLC
Violation: According to the SEC’s complaint, which was filed in the U.S. District Court for the Southern District of Florida, from January 2016 through September 2020, Brodman, his company Property Income Investors LLC, and his various other entities raised approximately $9.06 million from about 156 investors through a series of unregistered securities offerings… Read More

Penalties: N/A
Respondent: Terry A. Colip; Greg R. Colip & Cell>Point, LLC
Violation: The SEC’s complaint, filed in U.S. District Court for the District of Colorado, alleges that, between January 2016 and February 2021, Cell>Point and the Colips solicited investors by making false and misleading statements that Cell>Point’s lead product, an injectable compound designed for lung cancer and cardiovascular imaging, was months away from completing clinical trials that would lead to its commercialization and, ultimately, substantial returns for investors… Read More

Penalties: N/A
Respondent: George Todt & Wellness Matrix Group, Inc.
Violation: According to the SEC’s complaint, filed in federal court in Los Angeles, in February and March 2020, Wellness Matrix and Todt made materially false and misleading statements regarding COVID-19 at-home test kits and/or disinfectants that defrauded Wellness Matrix’s investors… Read More

Penalties: $600,000.00
Respondent: Edgar M. Radjabli
Violation: Radjabli and Apis Capital issued a June 2018 press release falsely claiming that the Apis Token offering had raised $1.7 million when, in fact, the offering had raised no money… Read More

Penalties: $700,000.00
Respondent: Bingqing Yang & Luca International, LLC
Violation: Without admitting or denying the allegations against her, Yang consented to entry of a final judgment permanently enjoining her from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), (2) and (4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder, from participating in the issuance, offer or sale of any security of an entity she controls; from soliciting any person or entity to purchase or sell any security; and from acting as an officer or director of a public company… 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: $8,8240.00
Respondent: Scott Eugene Bachman
Violation: Bachman directed the use of investor funds in connection with the Oddfellows Project, and, at Bachman’s direction, Crudefunders received transaction-based compensation for its sales of securities. However, Bachman was not registered with the Commission as a broker-dealer or associated with a registered broker-dealer. In addition, these securities were not registered and did not qualify for any exemption from registration. Therefore, Bachman violated Section 15(a)(1) of the Exchange Act and Sections 5(a) and 5(c) of the Securities Act… Read More

Penalties: N/A
Respondent: Edward E. Matthes
Violation: The criminal charges against Matthes stem from the same misconduct alleged in the SEC’s complaint. The SEC’s complaint alleged that Matthes convinced his brokerage customers and advisory clients to invest in what he described as a safe investment that would earn a guaranteed minimum yield of 4% per year… Read More

Penalties: N/A
Respondent: Matthew O. Clason
Violation: The SEC’s complaint, filed on September 1, 2020, charged Clason with violating the antifraud provisions of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. Clason consented to the partial judgment entered by the court, which enjoins him from violating the above statutes. Any disgorgement or civil penalty in the SEC matter will be determined by the court at a later date… Read More

Penalties: $500,000.00
Respondent: David F. Bandimere
Violation: On November 22, 2019, 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 and Sections 15(b) and 21C of the Securities Exchange Act of 1934 (the “Order”) against David F. Bandimere (the “Respondent”)… Read More

Penalties: $45,000.00
Respondent: Verus Capital Partners, LLC
Violation: This matter involves the failure of Verus, a registered investment adviser, to disclose the conflicts of interest arising from its investment adviser representatives (“IARs”) receiving forgivable loans from a broker-dealer (“Broker-Dealer A”), its affiliated registered investment adviser (“Investment Adviser A”), and their parent company (collectively the “Firm A”)… Read More

Penalties: N/A
Respondent: Thomas Nicholas Salzano
Violation: According to the SEC’s complaint, in January 2019, Salzano, an executive advisor and portfolio manager at National Realty Investment Advisors, LLC, a New Jersey-based private real estate management firm, sent the loan document to an investor to obtain an investment in a joint venture opportunity offered by the firm… Read More

Penalties: N/A
Respondent: Larry B. Brodman; Anthony Nicolosi & Property Income Investors LLC
Violation: According to the SEC’s complaint, which was filed in the U.S. District Court for the Southern District of Florida, from January 2016 through September 2020, Brodman, his company Property Income Investors LLC, and his various other entities raised approximately $9.06 million from about 156 investors through a series of unregistered securities offerings… Read More

Click here to see the full list of SEC Enforcement Documents

Penalties: $61,710,583.00
Respondent: Amazon Logistics Inc. Amazon.com Inc.
Violation: The Commission considered the matter and determined that it had reason to believe that Respondents have violated the Federal Trade Commission Act, and that a Complaint should issue stating its charges in that respect… Read More

Penalties: N/A
Respondent: Mitchell Lowe; Theodore Farnsworth & Moviepass Inc.,; Helios and Matheson Analytics, Inc.
Violation: The complaint alleges that this conduct violated two laws the FTC enforces. First, the FTC alleges the conduct to be a “deceptive act or practice” that violates Section 5(a) of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. § 45(a)… Read More