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1558 Enforcement Actions in the U.S. over past 30 days

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FTC enforcements decreased 55% over the past 30 days

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SEC issued enforcements: $37,812,859 over the past 30 days

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50 Final Rules go into effect in the next 7 days

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49 Mortgage Lending docs published in the last 7 days

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1670 docs with extracted obligations from the last 7 days

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new Proposed and Final Rules were published in the past 7 days

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11906 new docs in pro.compliance.ai within the last 7 days

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Financial-Enforcement-Actions-Week-of-November-30-to-December-06.

November 2019 Enforcement Action Summary

UK-FCA

2 Enforcement Documents

£0.00 in Fines

Penalties: N/A
Respondent: Final Notice 2019: Wesley Mckeever
Violation: Mr McKeever has failed to pay the Overdue Balance and has not been open and cooperative in all his dealings with the Authority, in that Mr McKeever has failed to respond to the Authority’s repeated requests for him to pay the Overdue Balance, and has thereby failed to comply with Principle 11 of the Principles and to satisfy the Authority that he is ready, willing and organised to comply with the requirements and standards of the regulatory system… Read More

Penalties: N/A
Respondent: Final Notice 2019: Prestige Vans Ltd
Violation: PVL has failed to pay the Overdue Balance and it has not been open and cooperative in all its dealings with the Authority, in that PVL has failed to respond to the Authority’s repeated requests for it to pay the Overdue Balance, and has thereby failed to comply with Principle 11 of the Principles and to satisfy the Authority that it is ready, willing and organised to comply with the requirements and standards of the regulatory system… Read More

FTC

1 Enforcement Document

$0.00 in Fines

Penalties: N/A
Respondent: A.S. Research, LLC (Synovia)
Violation: Based on the facts and violations of law alleged in the Complaint, the FTC has reason to believe that Defendants are violating or are about to violate laws enforced by the Commission. Defendants have engaged in their unlawful acts and practices repeatedly over the course of two years and continue to disseminate deceptive claims over the internet and through newspaper advertising, despite their knowledge of the Commission’s investigation… Read More

CFPB

3 Enforcement Documents

$0.00 in Fines

Penalties: N/A
Respondent: State Farm Bank, FSB Stipulation
Violation: The Bureau of Consumer Financial Protection (Bureau) intends to initiate an administrative proceeding against State Farm Bank, FSB (Respondent), under 12 U.S.C. §§ 5563 and 5565, for its credit-reporting activities in violation of §§ 604(f) and 623(a)(1)(A), (a)(2), and (a)(3) of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b(f), 1681s-2(a)(1)(A), (a)(2), & (a)(3), and Regulation V, 12 C.F.R. § 1022.42(a)… Read More

Penalties: N/A
Respondent: Security National Automotive Acceptance Company, LLC.
Violation: The Bureau releases and discharges Defendant from all potential liability for law violations that the Bureau has or might have asserted based on the practices alleged in the Complaint, to the extent such practices occurred before the Effective Date and the Bureau knows about them as of the Effective Date. The Bureau may use the practices alleged in the Complaint in future enforcement actions against Defendant and its affiliates, including, without limitation, to establish a pattern or practice of violations or the continuation of a pattern or practice of violations or to calculate the amount of any penalty… Read More

SEC

11 Enforcement Documents

$571,733.57 in Fines

Penalties: N/A
Respondent: SBB Research Group LLC, et al.
Violation: SBB misstated the funds’ historical performance and overcharged investors approximately $1.4 million in fees. According to the complaint, once the valuation issues were uncovered by SEC exam staff, the defendants took steps to conceal their fraud from investors and SBB’s auditor. The complaint alleges that when SBB hired an outside valuation firm in 2016, performance for its flagship fund was slashed, and SBB surreptitiously credited investors for the overcharged fees but did not disclose the underlying problem… Read More

Penalties: N/A
Respondent: Lester Burroughs
Violation: Lester W. Burroughs engaged in a scheme to defraud retail investors by misappropriating funds from one advisory client and then making Ponzi-like payments to the client using assets misappropriated from other advisory clients. Burroughs allegedly told certain advisory clients that he would invest their money in “Guaranteed Interest Contracts” (GIC) with guaranteed annual returns of 4% or 7%. The complaint alleges that Burroughs never invested his clients’ money in GICs and that he instead misappropriated the funds and provided clients with fake account statements to hide his theft… Read More

Penalties: $200,000.00
Respondent: Iconix Brand Group, Inc., Neil R. Cole and Seth Horowitz
Violation: The SEC separately charged Iconix with fraud for recognizing false revenue and manipulating its reported earnings in 2014, entering into transactions to conceal distressed finances at two licensees who could not meet licensing royalty payments owed to Iconix, and failing to recognize over $239 million in impairment charges for three brands over a multi-year period. Additionally, Iconix and its former Chief Financial Officer Warren Clamen failed to recognize losses from Iconix’s failing licensees, disclose that Iconix entered into transactions to secretly and temporarily bolster its licensees’ finances, and properly test for impairment. As a result of these accounting improprieties, Iconix overstated net income by hundreds of millions of dollars between 2013 and the third quarter of 2015… Read More

Penalties: $75,000.00
Respondent: Neil R. Cole and Seth Horowitz
Violation: Iconix provided a false and misleading description of the terms of the second quarter SEA II transaction, which omitted that the $15.9 million purchase price had been inflated by a $5 million overpayment that Cole had promised to give back. Cole’s promise to give $5 million back to Company 1 was omitted entirely… Read More

Penalties: $97,608.31
Respondent: Jatindar Kapur, CPA
Violation: Kapur willfully violated Sections 17(a)(2) and 17(a)(3) of the Securities Act, Section 13(b)(5) of the Exchange Act and Rule 13b2-1 thereunder, and willfully aided and abetted and caused Hertz Holdings’ violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, 13a11 and 13a-13 thereunder, and Hertz Corp.’s violations of Sections 15(d), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 15d-1, 15d-11 and 15d-13 thereunder… Read More

Penalties: $199,125.26
Respondent: Warren Clamen, CPA
Violation: Clamen willfully violated Sections 17(a)(2) and 17(a)(3) of the Securities Act. Specifically, he violated these statutes in connection with Iconix’s improper disclosure of its acquisition of the minority interest in the subsidiary that owned Brand 2 and the Company 4 acquisition transaction and accounting for the loss and cost of investments in connection with the buyout related to Brand 2 and Company 4 acquisitions. Negligence is sufficient to establish violations of Sections 17(a)(2) and 17(a)(3)… Read More

Penalties: N/A
Respondent: Raymon Holmdahl, CPA
Violation: Holmdahl failed to comply with American Institute of Certified Public Accountants audit standards by failing to obtain sufficient appropriate audit evidence about the existence of certain fund assets, failing to exercise appropriate professional judgment and professional skepticism, and failing to properly supervise the audit… Read More

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