SEC Accuses Breitling Energy Of $80M Fraud
The SEC charged Breitling Energy Corp., its CEO, and seven others with defrauding investors out of nearly $80 million by misleading them about the value of oil and gas assets [su_spacer size=”10″]The Commission’s suit alleges that CEO Christ Faulkner of Breitling, an oil and gas driller from Texas, had worked with numerous accomplices to defraud […]
SEC Bans MA Brokerage Firm Owner From Industry
The SEC has banned Massachusetts resident Lee Weiss from the brokerage and investment advisory industry for a fraudulent scheme pertaining to a French company that claimed it could reduce the harmful effects of tobacco smoking. Weiss, of Newton, Massachusetts, and his firm, Family Endowment Partners LLC, will pay roughly $8.4 million in relief to investors […]
SEC, FINRA Fine Merrill Lynch
Following on the heels of Merrill Lynch’s agreement yesterday to pay $415 million to settle claims made by the SEC, the commission and FINRA fined the firm an additional $15 million in another action brought by the SEC and a third brought by FINRA. [su_spacer size=”10″]In an announcement yesterday, the SEC stated that Merrill Lynch […]
TX Bars Adviser For Fraudulent Sales
James Poe, a Forth Worth, Texas-based adviser and president of Jim Poe & Associates, Inc. has been barred by Texas state securities regulators from acting as an investment adviser representative and broker in the state for fraudulent practices pertaining to the sale of life settlements. [su_spacer size=”10″]Poe got undisclosed payments from another firm he owned, […]
Morgan Stanley Subject Of Arbitration Filed By NC Couple
Two North Carolina investors have filed an arbitration claim with FINRA against Morgan Stanley over unsuitable investments involving the firm’s Cushing MLP High Income Exchange Traded Note. The married couple, who are retirees in their sixties, are accusing the brokerage firm of common law fraud, negligence, breach of fiduciary duty, negligent supervision, and failure to […]
Most Common Investment Adviser Violations
Six investment adviser violations make up roughly 60% of all deficiencies the SEC’s staff find when they investigate adviser offices, according to Renee Esfandiary, assistant director of the SEC’s Office of Compliance, Inspections and Examinations. The investment adviser violations include: Compliance Rule Violations include not have written policies and procedures to ensure firm operations adhere to […]
FINRA Bars Broker For Market Manipulation
FINRA barred broker George Johnson from the securities industry for operating a manipulative trading scheme to artificially inflate the market price and trading volume for the common stock of IceWEB, Inc. FINRA additionally sanctioned Christoper Wynne, Johnson’s supervisor, suspending him for two years in all capacities, barring him in a principal capacity, and fining him […]
Broker Lies About Charging $11M In Commissions For Nontraded REITs and BDCs
FINRA charged a broker for lying to a Native American tribe about the $11 million in commissions he charged when he sold the tribe $190 million in nontraded real estate investment trusts and business development companies. Between June 2011 and January 2015, broker Gopi Krishna Vungarala “regularly lied to his customer, a Native American tribe, regarding […]
SEC Seeks $2.5M From Texas Attorney For Securities Fraud
Last year, the SEC charged a Texas attorney with defrauding investors with regard to two securities offerings, one pertaining to an oil and gas exploration venture and the other a fracking water filtration business deal. The case was filed in the U.S. District Court for the Northern District of Texas against attorney Gregory G. Jones […]
Massachusetts Regulator Charges Securities Firm With Unsuitable Sale To Elderly Client
William Galvin, secretary of the commonwealth of Massachusetts, has charged a securities firm operating at Citizens Bank locations with “dishonest and unethical conduct” for selling an elderly woman funds that were riskier than her stated investment tolerance. Galvin seeks restitution from Citizens Securities for the anonymous investor, who lost roughly $7,000 when she got out […]
