Weekly Enforcement Action Tracker (June 10 – June 15)

Penalties: $14,942.90
Respondent: Donald Lane Preston
Violation: Preston recommended three unsuitable investments to his Firm customer, ML, in violation of FINRA Rules 2330, 2111 and 2010… Read More

Penalties: $20,000.00
Respondent: Andrew J. Lowe
Violation: Lowe recommended and engaged in unsuitable trading of Class A mutual fund shares in violation of NASD Rule 2310 and FINRA Rules 2111 and 2010. In addition, Lowe willfully failed to timely amend his Uniform Application for Securities Industry Registration or Transfer (“Form U4”) to disclose three federal tax liens in violation of Article V, Section 2(c) of FINRA’s By-Laws and FINRA Rules 1122 and 2010… Read More

Penalties: N/A
Respondent: Alexis Lertora
Violation: Lertora made material misstatements and omissions to his customers in soliciting the Offering and Notes… Read More

Penalties: N/A
Respondent: Harold Lee Connell
Violation: By participating in the sale of the offerings through misrepresentations and omissions, Connell willfully violated Section 10(b) of the Securities Exchange Act of 1934 (the “SEA”), SEA Rule 10b-5 promulgated thereunder, and FINRA Rules 2020 and 2010… Read More

Penalties: $50,000.00
Respondent: Northeast Securities, Inc.
Violation: During the period of January 2010 through December 2016, Northeast failed to: (a) maintain reasonable written supervisory procedures (“WSPs”) with respect to supervision of outside brokerage accounts and review of electronic communications: and (b) reasonably supervise its review of outside brokerage accounts and electronic communications. By virtue of this conduct, Northeast violated NASD Rules 30 I 0(a). (b) and (d), FINRA Rules 3110(a), (b) and (d), and FINRA Rule 2010… Read More

Penalties: N/A
Respondent: Justin Travis Mair
Violation: Between April and July 2016, Mair converted approximately $722 from a Firm customer in violation of FINRA Rules 2150(a) and 2010… Read More

Penalties: $30,000.00
Respondent: Garry N. Savage, Sr.
Violation: Savage violated NASD Rule 1017 and FINRA Rule 2010 by failing to obtain FINRA approval of a material change in Wall Street Strategies’ business operations, as required by Rule 1017 and the Firm’s Membership Agreement… Read More

Penalties: $10,000.00
Respondent: Robert Charles McNamara
Violation: Failing to disclose to his employer firm six outside brokerage accounts; improperly purchasing shares in an equity IPO; and (3) giving a false answer on a Client Affirmation Form of Eligibility for Initial Public Offerings… Read More

Penalties: $37,000.00
Respondent: Steven E. Larson
Violation: Respondent falsified firm records by backdating supervisory documents and then submitting some of them to FINRA. The Hearing Officer dissents from the Panel majority’s finding that Respondent made no fraudulent misrepresentations or omissions… Read More

Penalties: TBD
Respondent: Michael Joseph Clarke
Violation: From October 2015 to April 2016, Respondent Michael J. Clarke (“Clarke” or “Respondent”) made multiple misrepresentations to induce securities industry contacts, including his colleagues at broker-dealer MARV Capital Inc. (“MARV”), to provide him with nearly $600,000… Read More

Penalties: $75,000.00
Respondent: Terry Lee McCoy
Violation: From the period September 2011 through July 2012, McCoy violated NASD Rule 3010(b), MSRB Rule G-27, and FINRA Rule 2010, in that he failed to appropriately supervise the sales practices of AF and CL who engaged in excessive and unsuitable trading and used discretion without proper authorization in the accounts of RS, a customer at Morgan Stanley… Read More

Penalties: TBD
Respondent: CRH plc
Violation: A settlement resolving charges that CRH’s $3.5 billion acquisition of its Kansas-based competitor Ash Grove Cement Company is anticompetitive and violates federal antitrust law… Read More

Penalties: $40,559.00
Respondent: Robert M. Morano
Violation: Insider trading based on material nonpublic information he learned about the company’s impending acquisition by DSV Air & Sea Holdings A/V… Read More

Penalties: TBD
Respondent: Isaac Grossman, Adriana Grossman, Dragon-Click Corp., and Dragon Management, LLC
Violation: From September 2014 through the filing of the complaint, Dragon-Click, and Isaac Grossman solicited investors to purchase Dragon-Click stock, falsely claiming that investors would make huge profits and their money would be used to pay for the development and marketing of Dragon-Click’s internet shopping application… Read More

Penalties: TBD
Respondent: Solo International, Inc., Urban Hydroponics, Inc. and Your Event, Inc.
Violation: Urban Hydroponics 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, 2015… Read More

Penalties: $15,803,161.00
Respondent: Merrill Lynch, Pierce, and Fenner & Smith Incorporated
Violation: Failed to reasonably implement procedures to monitor for the types of false or misleading statements that are the subject of this Order… Read More

Penalties: $455,358.00
Respondent: Kurt J. Bordian
Violation: Shortly before the merger announcement, Bordian purchased out-of-the-money InterOil call options with near-term expiration dates, which meant that Bordian stood to profit only if InterOil’s stock price rose significantly shortly after he acquired the options… Read More

Penalties: N/A
Respondent: SEC Complaint – Kurt J. Bordian
Violation: Bordian violated the antifraud provisions of Sections 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5]… Read More

Penalties: TBD
Respondent: Eric Erb
Violation: On August 7, 2017, Erb pled guilty to one count of wire fraud in violation of 18 U.S.C. § 1343 before the United States District Court for the Eastern District of New York, in United States v. Eric Erb, Case No. 17-CR-413… Read More

Penalties: $75,000.00
Respondent: Bristol Group, Inc.
Violation: This matter involves Bristol Group Inc.’s violations of the reporting provisions of Rule 204(b)-1 under the Advisers Act. Rule 204(b)-1 requires certain investment advisers with at least $150 million in private fund assets under management to file and periodically update a report on Form PF to provide information about the private funds they manage. From 2013 through 2016, Bristol was subject to the reporting requirements of Rule 204(b)-1 but failed to file or update a report on Form PF… Read More

Penalties: TBD
Respondent: America Greener Technologies, Inc., MV Portfolios, Inc. and Trycera Financial, Inc.
Violation: MVPI 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 June 30, 2016… Read More

Penalties: N/A
Respondent: Joseph Mangiapane, Jr.
Violation: Mangiapane participated in a pump and dump scheme involving the unregistered stock of Asia Global Holdings Corp., which he sold as a registered representative of the broker-dealer AIS in 2006 and 2007… Read More

Penalties: N/A
Respondent: William Jordan
Violation: In connection with the sale of limited liability company interests and promissory notes to advisory clients, Jordan misrepresented the use of investor proceeds, overstated asset values, paid excessive management fees and bonuses, failed to conduct audits or reviews of the funds’ financial statements as required by the offering documents, had undisclosed conflicts of interest, and otherwise engaged in a variety of conduct which operated as a fraud and deceit on investors… Read More

Penalties: N/A
Respondent: MagnaChip Semiconductor Corporation and Margaret Hye-Ryoung Sakai, CPA
Violation: Accordingly, for good cause shown, IT IS HEREBY ORDERED that the Division’s request for an extension of time until April 30, 2019, to submit a Proposed Plan of Distribution is granted… Read More

Penalties: N/A
Respondent: RSM US LLP
Violation: RSM repeatedly violated professional standards, including by failing to conduct the 2011 Fund I audit (hereinafter “Fund I audit”) in conformity with Generally Accepted Auditing Standards (“GAAS”) and issuing to Fund I an audit report containing an unqualified opinion that the fund’s statement of assets and partners’ capital was presented fairly, in all material respects, in conformity with Generally Accepted Accounting Principles (“GAAP”)… Read More

Penalties: N/A
Respondent: Ross, Sinclaire & Associates, LLC and Murray Sinclaire, Jr.
Violation: On May 3, 2018, the Notice of Proposed Plan of Distribution and Opportunity for Comment (the “Notice”)2 was published, pursuant to Rule 1103 of the Commission’s Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1103. The Notice advised interested persons that they could obtain a copy of the Proposed Plan of Distribution (the “Plan”) from the Commission’s public website or by submitting a written request to Susan S. Pecaro, Senior Counsel, United States Securities and Exchange Commission, Office of Distributions, 100 F Street, NE, Washington, DC 20549-5876… Read More

Penalties: N/A
Respondent: DeVere USA, Inc.
Violation: By order dated June 30, 2017, the Commission issued the “Omnibus Order Directing the Appointment of Tax Administrator in Administrative Proceedings that Establish Distribution Funds” (“Omnibus Order”),1 authorizing the Secretary to issue orders beginning June 2017 and for calendar year 2018 appointing, upon request by the Commission staff, Miller Kaplan Arase LLP, a certified public accounting firm, which acquired Damasco & Associates LLP (“Miller Kaplan”), with one of their offices located in San Francisco, California, as tax administrator (“Tax Administrator”) in administrative proceedings where the distribution fund may incur tax-related obligations as a Qualified Settlement Fund (“QSF”) under the Department of the Treasury Regulation § 1.468B-1(c)… Read More

Penalties: N/A
Respondent: Ross, Sinclaire & Associates, LLC and Murray Sinclaire, Jr. – Distribution Plan
Violation: The Division of Enforcement has prepared this Plan of Distribution (the “Plan”) pursuant to Rule 1101 of the Commission’s Rules on Fair Fund and Disgorgement Plans (the “Commission’s Rules”), 17 C.F.R. § 201.1101… Read More

Penalties: N/A
Respondent: Ronald A. Fossum Jr.
Violation: From 2011 through 2016, Fossum and three entities he owned and controlled raised roughly $20 million from over one hundred investors through multiple unregistered offerings of securities issued by the three investment funds. In connection with raising investor money and managing and advising the investment funds, the Commission’s Complaint alleged that Fossum engaged in multiple fraudulent and deceptive acts, including misrepresenting the financial condition of the funds, misstating management compensation, misappropriating fund assets for personal expenses, and commingling fund assets… Read More

Penalties: N/A
Respondent: MagnaChip Semiconductor Corporation and Margaret Hye-Ryoung Sakai, CPA
Violation: Accordingly, IT IS ORDERED that Miller Kaplan, pursuant to and in accordance with the Omnibus Order, is appointed the Tax Administrator for the QSF in the above-referenced proceeding… Read More

Penalties: $1,271,552.00
Respondent: Ronald A. Fossum, Jr. and Alonzo R. Cahoon
Violation: Fossum used fraudulent statements and material omissions to induce more than one hundred investors to invest in his funds, and that he repeatedly breached his fiduciary duties to the funds by indiscriminately commingling fund assets to satisfy the funds’ liquidity needs… Read More