Financial Enforcement Actions | Week of May 08 to May 14

Penalties: N/A
Respondent: Kramer Duhon & Health Research Laboratories, LLC; Whole Body Supplements, LLC
Violation: Complaint Counsel, for their part, asserted before the ALJ that discovery was required on the issue of remedy notwithstanding the Rule 3.12(b)(2) Answer. See, e.g., Complaint Counsel’s Second Motion to Compel Respondents to Supplement Interrogatory Responses at 1-2 (Mar. 24, 2021[])… Read More

Penalties: N/A
Respondent: Altria Group, Inc; JUUL Labs, Inc
Violation: On May 9, 2021, Respondent JUUL Labs, Inc. (“Respondent” or “JLI”) filed a Motion for Leave to File Out of Time (“Motion”). Respondent recites that under the Second Revised Scheduling Order issued in this case on March 4, 2021, the deadline for filing motions for in camera treatment of proposed trial exhibits, pursuant to Rule 3.45 of the FTC’s Rules of Practice, was May 7, 2021. 16 C.F.R. § 3.45. JLI seeks an extension until May 8, 2021… Read More

Penalties: $50,000.00
Respondent: Daniel Ripp & Bradley Woods & Co. Ltd
Violation: Between October 2015 and January 2018, Bradley Woods and Ripp failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with FINRA’s rules concerning outside business activities (OBAs), in violation of FINRA Rules 3110 and 2010… Read More

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

Penalties: N/A
Respondent: Adam Gerard Belardino
Violation: Respondent Adam Gerard Belardino failed on two occasions to appear for on-therecord (“OTR”) testimony requested by FINRA staff pursuant to FINRA Rule 8210… Read More

Penalties: N/A
Respondent: William H. Dixon
Violation: Dixon failed to provide documents pursuant to FINRA Rule 8210. By virtue of this misconduct, Dixon violated FINRA Rules 8210 and 2010… Read More

Penalties: $5,000.00
Respondent: Jue-Hua Rae Yau
Violation: From 2014 to 2019, Respondent prepared tax returns for a customer in exchange for compensation without providing prior written notice to the firm, in violation of FINRA Rules 3270 and 2010… Read More

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

Penalties: $5,000.00
Respondent: Lance Damion Lienart
Violation: From January 2018 to May 2019, Respondent submitted for reimbursement expense reports for approximately SI.,600 in expenses incurred during business meals, in which he inaccurately stated that certain clients had attended the meals. As a result, Respondent violated FINRA Rule 2010… Read More

Penalties: N/A
Respondent: Francisco W. Coronel
Violation: Respondent refused to provide documents and information requested pursuant to FINRA Rule 8210, in violation of FINRA Rules 8210 and 2010… Read More

Penalties: $5,000.00
Respondent: Hung Sam
Violation: In September 2020, while a registered representative of Wells Fargo Clearing Services (WPCS), Hung Sam borrowed $230,000 from a WFCS customer to finance a real-estate purchase without the firm’s knowledge or prior written authorization, and in violation of he firm’s written procedures. Through this conduct, Sam violated FINRA Rules 3240 and 2010… Read More

Penalties: N/A
Respondent: John E. Simmons, Jr
Violation: Simmons violated FINRA Rules 8210 and 2010 by failing to provide information and documents pursuant to FINRA rule 8210… Read More

Penalties: $5,102,283.50
Respondent: Leonard J. Cipolla & Tate Street Trading Inc.
Violation: Cipolla violated 7 U.S.C. § 6b(a)(l)(A)-(C) by misappropriating pool participants’ funds, by making material misrepresentations with scienter, and by willfully issuing false statements. Cipolla violated 7 U .S.C. § 6o( 1 )(A) and (B) by knowingly or recklessly employing schemes to defraud pool participants and engaging in transactions, practices, and courses of business that operated as a fraud or deceit upon pool participants… Read More

Penalties: N/A
Respondent: US-China Biomedical Technology, Inc
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations… Read More

Penalties: N/A
Respondent: Vilacto Bio, Inc
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations… Read More

Penalties: N/A
Respondent: Christopher Knight Lopez; Forrest Andrew Jones; Jayson Lopez & Knight Nguyen Investments
Violation: The SEC alleges that Knight Nguyen majority owner Chris Lopez and representative Forrest Jones held out the firm as an established investment adviser with expertise in low-risk alternative investments… Read More

Penalties: N/A
Respondent: Clinton Maurice Tucker II
Violation: The Commission’s complaint alleged that, from at least 2014 to 2019, Respondent misappropriated investor funds and otherwise engaged in a variety of conduct that operated as a fraud and deceit on investors… Read More

Penalties: N/A
Respondent: Quantum Materials Corp
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations… Read More

Penalties: N/A
Respondent: Texas South Energy, Inc
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations… Read More

Penalties: N/A
Respondent: Moregain Pictures, Inc
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations… Read More

Penalties: N/A
Respondent: Pledge Petroleum Corp.
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations… Read More

Penalties: $603,776.82
Respondent: Securities America Advisors, Inc
Violation: On November 13, 2020, the Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order (the “Order”) against Securities America Advisors, Inc. (the “Respondent”)… Read More

Penalties: N/A
Respondent: DaRayl D. Davis & Affluent Advisory Group, LLC
Violation: The complaint alleges that Davis hosted seminars and used his religious affiliation to gain investors’ trust. The complaint further alleges that Davis fabricated documents and made false statements to support the sale of fictitious financial products. As alleged, Davis did not invest the money he raised from his clients as he had represented, but instead used the money to fund a lavish lifestyle, repay prior investors, and further his fraudulent scheme… Read More

Penalties: N/A
Respondent: FlatWorld Acquisition Corp
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations… Read More

Penalties: N/A
Respondent: Freestone Resources, Inc
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations… Read More

Penalties: N/A
Respondent: Gala Pharmaceutical, Inc
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter… Read More

Penalties: N/A
Respondent: MJ Biotech, Inc f/k/a Michael James Enterprises, Inc
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations… Read More

Penalties: $1,500,000.00
Respondent: GWFS Equities, Inc
Violation: From September 2015 through October 2018 (the “Relevant Period”), GWFS failed to implement its anti-money laundering program (“AML Program”) consistently in practice. As a result, GWFS: (1) failed to file approximately 130 SARs, including in cases when it had detected external bad actors gaining, or attempting to gain, access to the retirement accounts of participants in the employer-sponsored retirement plans it serviced; and (2) omitted, from approximately 297 SARs it did file, information it knew, and was required to report, about the suspicious activity and suspicious actors… Read More

Penalties: N/A
Respondent: Aedan Financial Corporation
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter… Read More

Penalties: N/A
Respondent: AirXpanders, Inc
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter… Read More

Penalties: N/A
Respondent: Alphacom Holdings, Inc
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter… Read More

Penalties: N/A
Respondent: Ameritek Ventures, Inc
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations… Read More

Penalties: N/A
Respondent: Cerebain Biotech Corp
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations… Read More

Penalties: N/A
Respondent: China Soar Information Technology, Inc
Violation: The Respondent is delinquent in its periodic filings with the Commission, has repeatedly failed to meet its obligation to file timely periodic reports, and failed to heed a delinquency letter sent to it by the Division of Corporation Finance requesting compliance with its periodic filing obligations or, through its failure to maintain a valid address on file with the Commission as required by Commission rules, did not receive such letter… Read More

Penalties: $167,629.00
Respondent: Northern Trust Hedge Fund Services LLC; Northern Trust Global Fund Services Cayman Limited
Violation: On September 18, 2020, the Commission issued an Order Instituting Cease-and-Desist Proceedings Pursuant to Section 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing a Cease-and-Desist Order (the “Order”) against Northern Trust Hedge Fund Services LLC and Northern Trust Global Fund Services Cayman Limited (collectively, the “Respondents”)… Read More

Penalties: $75,000.00
Respondent: Peter J. DeCaprio
Violation: This matter arises from the failure of former registered investment adviser Crow Point Partners, LLC (“Crow Point”) and its principal Peter J. DeCaprio (“DeCaprio”) to disclose certain conflicts of interest to advisory client the EAS Crow Point Alternatives Fund (“EAS Fund”), an open-end mutual fund… Read More

Penalties: N/A
Respondent: Stephen J. Byrne
Violation: The Commission’s complaint alleged that, among other things, while acting as an unregistered broker, Byrne committed fraud and registration violations in connection with the sale of securities benefiting CapSource’s largest client (“Individual 1”) and certain entities related to his drug rehabilitation business (“Company A”)… Read More

Penalties: $18,545,896.16
Respondent: Wilmington Trust Corporation
Violation: According to the Order, the administrative proceeding arose out of false and misleading disclosures by WTC concerning its accruing loans past due 90 days or more over multiple quarters during 2009 and 2010, its non-accruing loans in the third quarter of 2009, and its reserves for loan losses in the third and fourth quarters of 2009. The Commission found, among other things, that the Bank omitted almost $339 million in matured loans past due 90 days or more from its disclosures in its filings with the Commission for the third quarter of 2009; omitted over $330 million in matured loans past due 90 days or more from its disclosures in its filings for the year ended 2009; and incorporated its false and misleading Form 10-K for 2009 by reference in the offering materials for a February 2010 public offering in which the Bank sold $287 million of its common stock… Read More

Penalties: N/A
Respondent: Gregory P. Herlean
Violation: The Commission’s complaint alleged that, among other things, while acting as an unregistered broker, Herlean committed fraud and registration violations in connection with the sale of securities benefiting CapSource’s largest client (“Individual 1”) and certain entities related to his drug rehabilitation business (“Company A”)… Read More

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