Financial Enforcement Actions | Week of Mar 20 to Mar 26

Penalties: N/A
Respondent: Jason P. Wootten; Ronald Frank Stevenson & Family Tree Estate Planning, LLC; American Financial Security, LLC
Violation: According to the SEC’s complaint, between approximately October 2016 and February 2020, Wootten and his company, Family Tree Estate Planning, LLC, sold over $32 million of the Funds’ securities to more than 100 investors. Wootten, through Family Tree Estate Planning, received approximately $3.7 million in commissions from EquiAlt, despite neither Wootten nor Family Tree being registered as a broker-dealer… Read More

Penalties: N/A
Respondent: TYLER C. SADEK
Violation: From 2016 to 2017, Tyler Sadek, a principal of Foundry Capital Group, LLC, an Indiana investment adviser to the Foundry Mezzanine Opportunity Fund, reviewed, edited, and approved newsletters issued to the Fund’s investors and prospective investors that contained misleading statements and omissions… Read More

Penalties: N/A
Respondent: Integral Technologies, Inc
Violation: ITKG 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, 2018… Read More

Penalties: N/A
Respondent: Andrew L. White
Violation: From September 2016 through March 2018, White acted as an unregistered broker or dealer by selling the securities of 1 Global Capital LLC (“1 Global”)… Read More

Penalties: $236,479.00
Respondent: SCOTT T. WOLFRUM
Violation: These proceedings arise out of investment adviser Scott Wolfrum’s failure to disclose conflicts of interest when recommending that his advisory clients invest in Foundry Mezzanine Opportunity Fund (“FMOF” or the “Fund”), a private fund that provides lending to and invests in small businesses… Read More

Penalties: N/A
Respondent: Chris A. Dantin
Violation: From October 2015 through April 2018, Dantin acted as an unregistered broker or dealer by selling the securities of 1 Global Capital LLC (“1 Global”)… Read More

Penalties: N/A
Respondent: Isaiah L. Goodman
Violation: The Commission’s complaint alleged, among other things, that from approximately 2018 to 2020, Goodman stole approximately $2.25 million from at least 20 of his advisory clients… Read More

Penalties: N/A
Respondent: WORLD TREE FINANCIAL, LLC
Violation: The Commission’s complaint alleged that, from March 2011 through September 2015, World Tree, through its principal Wesley Kyle Perkins, disproportionately allocated unfavorable trades to two large accounts owned by a single client, while allocating favorable trades to accounts owned by Perkins, his wife, and other World Tree clients… Read More

Penalties: N/A
Respondent: TROY E. MARCHAND
Violation: From 2016 to 2017, Troy Marchand, principal of investment adviser Foundry Capital Group, LLC (“FCG”), and portfolio manager of the Foundry Mezzanine Opportunity Fund (“FMOF” or “Fund”), engaged in deceptive conduct that defrauded both the Fund and its investors… Read More

Penalties: N/A
Respondent: Christopher D. Dantin
Violation: From November 2015 through July 27, 2018, Dantin acted as an unregistered broker or dealer by selling the securities of 1 Global Capital LLC (“1 Global”)… Read More

Penalties: N/A
Respondent: John W. Fisher
Violation: The SEC’s complaint alleges that the defendant, John W. Fisher, was among 1 Global’s top revenue producers, selling more than $8.5 million of 1 Global’s unregistered securities to numerous investors… Read More

Penalties: N/A
Respondent: WESLEY KYLE PERKINS
Violation: The Commission’s complaint alleged that, from March 2011 through September 2015, Perkins, who determined trades and allocations at World Tree, disproportionately allocated unfavorable trades to two large accounts owned by a single client, while allocating favorable trades to accounts owned by him, his wife, and other World Tree clients… Read More

Penalties: N/A
Respondent: Guy Gentile & MintBroker International Ltd., f/k/a Swiss America Securities, Ltd. and d/b/a SureTrader
Violation: According to the SEC’s complaint, beginning in March 2016 and continuing through November 2019, SureTrader, under Gentile’s leadership, operated an offshore broker-dealer that marketed its ability to help novice day traders in the United States circumvent U.S. rules that regulate “pattern day trading… Read More

Click here to see the full list of SEC Enforcement Documents

Penalties: $15,000.00
Respondent: Charles Thomas Stevens
Violation: Respondent Charles Thomas Stevens is barred from associating with any FINRA member firm in any capacity for failing to appear and provide on-the-record testimony… Read More

Penalties: $5,000.00
Respondent: Daniel Weimer
Violation: In August 2019, in anticipation of his departure from the firm, Respondent removed from the firm and retained nonpublic personal information (NPI) of approximately 1,300 firm customers, without the firm’s or the customers’ knowledge or consent. By doing so, Respondent caused the firm to violate Regulation S-P and, in so doing, Respondent violated FINRA Rule 2010… Read More

Penalties: N/A
Respondent: William James Novack
Violation: After receiving a request for on-the-record testimony issued by FINRA staff pursuant to F1NRA Rule 8210, Respondent declined to appear for testimony… Read More

Penalties: $5,000.00
Respondent: Jeffrey Fladell
Violation: From February 2014 through August 2015, Fladell made unsuitable recommendations to Customer M, a senior over 100 years old, which resulted in her extreme overconcentration in high-yield municipal bonds in violation of MSRB Rule G-19… Read More

Penalties: $40,000.00
Respondent: Dalmore Group LLC
Violation: Between March 2017 and December 2018, Dalmore failed to establish and maintain a supervisory system, including written supervisory procedures, reasonably designed to ensure that the firm complied with its due diligence obligations, in violation of FINRA Rules 3110 and 2010. From April 2017 through February 2019, Dalmore also failed to submit required offering documents to FINRA within 15 calendar days of the date of first sale for 26 private placements, in violation of FINRA Rules 5123 and 2010… Read More

Penalties: $5,000.00
Respondent: Bruce P. Kelly & Nolan Securities Corp
Violation: Nolan Securities failed to provide for annual independent testing of the firm’s anti-money laundering (AML) compliance program from 2016 through 2019, in violation of FINRA Rules 3310(c) and 2010… Read More

Penalties: N/A
Respondent: Jeremy Taylor Johnson
Violation: In connection with FINRA’s investigation into the suitability and potential misrepresentations and omissions related to Johnson’s offer and sale of two securities offerings while associated with Torch Securities, FINRA staff issued Johnson a request for on-the-record testimony pursuant to FINRA Rule 8210… Read More

Penalties: $60,000.00
Respondent: Scott Richard Reynolds
Violation: From January 3, 2017 through February 28, 2019, Reynolds executed 580 non-bona fide matched trades between his proprietary inventory account at Spartan and six outside brokerage accounts that Reynolds controlled in a relative’s name… Read More

Penalties: $275,000.00
Respondent: Citadel Securities LLC
Violation: From July 2017 through October 2019, Citadel Securities had multiple issues with correctly reporting Treasury transactions to the Trade Reporting and Compliance Engine (TRACE) causing violations of FINRA Rules 6730 and 2010… Read More

Penalties: $5,000.00
Respondent: John O’Bannon
Violation: In August 2020, while registered through Edward Jones, O’Bannon attempted to settle a customer complaint without the knowledge or approval of the firm, in violation of FINRA Rule 2010… Read More

Penalties: $5,000.00
Respondent: Grace M. Casella
Violation: On August 28, 2020, while associated with Securian, Casella sat for her Series 7 qualification examination. Before submitting her answers, Casella took an unscheduled break, during which time she possessed prohibited study materials in the testing center’s restroom. As a result of this conduct, Casella violated FINRA Rules 1210 and 2010… Read More

Penalties: $5,000.00
Respondent: Christopher Nelson
Violation: From February 2019 through May 2019, Nelson entered hundreds of orders for securities transactions, using his name and representative code, in two customer accounts when, in fact, he was not the representative who was responsible for the accounts or who recommended the transactions. As a result, Nelson falsified firm records, and caused his firm to maintain inaccurate books and records, in violation of FINRA Rule 2010 and FINRA Rules 4511 and 2010… Read More

Penalties: $5,000.00
Respondent: Allan Katz
Violation: On or about March 5, 2019, Katz reused an elderly customer’s signature pages on 11 account transfer forms required for one customer to transfer directly-held mutual funds into two management investment accounts. Through this conduct, Katz violated FINRA Rule 2010… Read More

Penalties: N/A
Respondent: Chad T. Mackland
Violation: Mackland failed to provide documents and information requested by FINRA pursuant to FINRA Rule 8210. Mackland thereby violated FINRA Rules 8210 and 2010… Read More

Penalties: $5,000.00
Respondent: Mark Larry Delgadillo
Violation: While registered with DAD, Delgadillo engaged in discretionary trading without written authorization for 16 customers between August 1, 2019 and October 31, 2019 (Relevant Period), effecting approximately 100 transactions. As a result, Delgadillo violated FINRA Rules 3260(b) and 2010… Read More

Penalties: $15,000.00
Respondent: Riaz Haidri
Violation: In August and September 2015, Haidri disclosed the trading strategy of a firm customer acquiring a long position in a distressed bond, and later confirmed its identity, to another firm customer that had a short position in the same bond, in violation of FINRA Rule 2010… Read More

Penalties: $5,000.00
Respondent: Chad T. Crawford
Violation: From April 2020 to June 2020, while associated with Sigma and Parkland, Crawford engaged in an outside business activity without providing prior written notice to either firm. He thereby violated FINRA Rules 3270 and 2010… Read More

Penalties: $5,000.00
Respondent: Corey Alexander Johnson
Violation: From April 2017 through April 2019, while associated with Aegis, Johnson effected 1,358 trades in five customer accounts using discretion without the customers’ prior written authorization and without the Firm accepting these accounts as discretionary in writing. Based on the foregoing, Johnson violated NASD Rule 2510(b) and FINRA Rule 2010… Read More

Penalties: $950,000.00
Respondent: Nordgas, S.r.l.
Violation: The apparent violations occurred over an approximately four-year period, during which Nordgas knowingly reexported 27 shipments of air pressure switches procured from a U.S. company intended for as many as ten customers in Iran and caused a U.S. company to indirectly export its goods to Iran. In doing so, Nordgas obfuscated the reexportation and Iranian customers from the U.S. company… Read More

Penalties: $950,000.00
Respondent: Nordgas, S.r.l.
Violation: Over an approximately four-year period, Nordgas knowingly reexported 27 shipments of air pressure switches procured from a U.S. company intended for as many as ten customers in Iran and caused a U.S. company to indirectly export its goods to Iran. In doing so, Nordgas obfuscated the reexportation and Iranian customers from the U.S. company… Read More

Penalties: N/A
Respondent: Louisiana Real Estate Appraisers Board
Violation: The Louisiana Real Estate Appraisers Board (the “Board”) a non-sovereign political entity comprised of private real estate appraisers adopted and enforced a rule that directly restrained price competition for appraisal services provided to appraisal management companies (“AMCs”)… Read More

Penalties: N/A
Respondent: KRAMER DUHON & HEALTH RESEARCH LABORATORIES, LLC; WHOLE BODY SUPPLEMENTS, LLC;
Violation: The acts and practices of Respondents as alleged in this complaint constitute unfair or deceptive acts or practices, and the making of false advertisements, in or affecting commerce in violation of Sections 5(a) and 12 of the Federal Trade Commission Act… Read More

Penalties: $18,600,000.00
Respondent: FASHION NOVA, INC
Violation: The Complaint charges that Defendant participated in deceptive and unfair acts or practices in violation of Section 5 of the FTC Act, 15 U.S.C. § 45, and of the Commission’s Trade Regulation Rule Concerning the Sale of Mail, Internet or Telephone Order Merchandise (the “Rule”), 16 C.F.R. Part 435, by failing to offer consumers, clearly and conspicuously and without prior demand, an option to consent to a delay in shipment or to cancel an order and receive a prompt refund when Defendant failed to ship properly completed orders for merchandise within the timeframe required by the Rule, and failing to deem an order cancelled and make a prompt refund as required by the Rule… Read More

Penalties: N/A
Respondent: YINAN DU & BEAM FINANCIAL INC
Violation: In numerous instances in connection with the advertising, marketing, promotion, or offering of the Beam app, including through the means described in Paragraphs 13–17, Defendants represent directly or indirectly, expressly or by implication, that consumers who deposit funds with the Beam app will have “24/7” access to their funds, will have access to their money with “no lockup,” and will have their withdrawn money returned to them in five or fewer business days… Read More

Penalties: $571,986,589.00
Respondent: BENJAMIN REYNOLDS
Violation: The Complaint alleges that Reynolds violated the Act through use of a website hosted and registered with an Internet hosting company located in the United States. Reynolds used this U.S.-hosted website to make material misrepresentations to prospective and existing customers to entice them to open Control-Finance accounts and deposit their Bitcoin with the company… Read More

Penalties: $100,000.00
Respondent: Emilio José Heredia Collado
Violation: Respondent engaged in the manipulation, and directed and induced personnel under his supervision to engage in the manipulation, in order to manipulate the benchmark prices of fuel oil products reported by S&P Global Platts, a price reporting agency, for the purpose of benefiting the Trading Company’s related trading positions, including more than approximately 100 multimillion-dollar oil-product trades with a large, state-owned enterprise that were priced in reference to a Platts benchmark… Read More