Compliance.ai

Weekly Enforcement Action Tracker Mar 18 – Mar 23 1

FTC

4 Enforcement Documents

$3,293,512.00 in Fines

Penalties: $3,293,512.00
Respondent: Jasjit Gotra (Alliance Security)
Violation: Through its authorized telemarketers, called millions of consumers whose numbers are on the National Do Not Call (DNC) Registry. Two of Alliance’s authorized telemarketers and their principals also have agreed to settle charges that they made illegal calls on Alliance’s behalf… Read More

Penalties: TBD
Respondent: AWS, LLC, et al. (FBA Stores)
Violation: falsely claiming that people who buy the defendants’ expensive “Amazing Wealth System” will learn “secrets for making money on Amazon” and likely earn thousands of dollars a month… Read More

Penalties: N/A
Respondent: MyEx.com Refunds
Violation: MyEx.com, was dedicated solely to revenge porn and solicited intimate pictures and videos of victims, together with their personal information such as their name, address, employer, and social media account information. The defendants charged victims fees from $499 to $2,800 to remove their images and information from the site… Read More

Penalties: N/A
Respondent: CDK Global and Auto/Mate
Violation: CDK Global, Inc.’s proposed acquisition of Auto/Mate would reduce competition in an already concentrated market, eliminating the substantial current competition between CDK and Auto/Mate, and between Auto/Mate and other market participants… Read More

SEC

6 Enforcement Documents

$883,172.82 in Fines

Penalties: $500,000.00
Respondent: Elizabeth Holmes, et al. and Ramesh “Sunny” Balwani
Violation: Theranos, Holmes, and Balwani with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC also charges Balwani with aiding and abetting Theranos and Holmes in violating these provisions… Read More

Penalties: $134,172.82
Respondent: Americrude, et al.
Violation: defrauding investors out of at least $950,000 through a string of fraudulent oil-and-gas securities offerings… Read More

Penalties: N/A
Respondent: SEC Compliant – Americrude, et al.
Violation: defrauding investors out of at least $950,000 through a string of fraudulent oil-and-gas securities offerings… Read More

Penalties: $144,000.00
Respondent: Howard Richards; James Goodland, and Securus Wealth Management, LLC
Violation: failed to disclose to his clients his significant conflict of interest arising from his ownership of Gatekeeper shares, in breach of his fiduciary duty as an investment adviser… Read More

Penalties: $25,000.oo
Respondent: Steven Metro
Violation: part of an insider trading scheme involving more than a dozen pending corporate transactions in which illegal tips were passed via napkins or post-it notes at Grand Central Terminal… Read More

Penalties: $80,000.00
Respondent: Electronic Transaction Clearing, Inc.
Violation: ETC willfully violated Section 15(c)(3) of the Exchange Act and Rule 15c3-3 thereunder, which, among other things, requires a carrying broker-dealer to promptly obtain and thereafter maintain physical possession or control over customers’ fully paid and excess margin securities, and to review its books and records in order to determine the quantity of fully paid or excess margin securities it holds for its customers, to determine if these securities are not in its possession or control and, if they are not, to initiate steps to obtain their possession or control… Read More

FINRA

5 Enforcement Documents

$2,538,828.00 in Fines

Penalties: N/A
Respondent: Gary J. Basralian
Violation: Basralian has not been associated with a FINRA member firm since his resignation from Royal Alliance. Although he is no longer associated with a FINRA member firm, Basralian remains subject to FINRA’s jurisdiction pursuant to Article V, Section 4 of FINRA’s By-Laws of the Corporation…Read More

Penalties: $5,000.00
Respondent: Michael S. Androulakis
Violation: Between October 2014 through April 2016 (the “Relevant Period”), while Androulakis was registered with Legend, Androulakis violated FINRA Rules 2111 and 2010 by failing to have a reasonable basis to recommend and effect 24 unsuitable Leveraged Exchange Traded Fund (“Non-Traditional ETF”) transactions in the accounts of three senior citizen customers… Read More

Penalties: $5,000.00
Respondent: Craig Blattner
Violation: Blattner did not disclose HM’s April 2013 complaint to ICC, and that complaint was never reported on his Form U4. Instead, Blattner wrote HM and KM a $15,000 check from his personal checking account… Read More

Penalties: $2,478,828.00
Respondent: Thomas Alan Meier
Violation: Meier effected more than 1,000 unauthorized transactions in the accounts of six customers and exercised discretion without written authorization and without the accounts being accepted as discretionary in the accounts of four other customers. As a result of the foregoing, Meier violated NASD Rule 2510(b) and FINRA Rule 2010… Read More

Penalties: $50,000.00
Respondent: Kenneth J. Mathieson
Violation: We find that Mathieson violated FINRA Rules 3270 and 2010 by participating in Aspen’s business for months prior to requesting written permission from Morgan Stanley and for continuing that participation after his request was denied and Morgan Stanley directed him to discontinue his involvement with Aspen… Read More

Weekly Enforcement Action Tracker (Mar 18 – Mar 23)

FTC