FBI Raids PhoenixMart HQ In Securities Fraud Investigation
The FBI raided the PhoenixMart headquarters last week in northeast Phoenix. Agents swarmed the building at 7:00 AM on Thursday to investigate possible securities and investor fraud at the company. Agents were not allowed to speak on the raid. However, a spokesperson for the FBI said that the bureau could confirm the raid was ongoing […]
New York Financial Adviser Sentences In Massive Ponzi Scheme
Scott Valente, a 58-year-old stock broker from upstate New York, was sentenced in federal court today to twenty years imprisonment for defrauding over a hundred investors out of over $10 million. He was also ordered to pay $8.2 million in restitution. He had originally spent that money on vacation homes, jewelry for his wife, and […]
History Of Investors Capital Corporation’s Malfeasance
Investors Capital Corporation, a dually-registered independent Broker/Dealer and Investment Advisory firm, has a long history of malfeasance. In the summer of 2014, Patricia S. Miller, a former financial adviser with ICC, was arrested for orchestrating a massive Ponzi scheme that cost her clients millions in savings. Through her scheme, she obtained $4.1 million from over […]
FINRA Issues Investor Alert On IRS Impersonation Scam
FINRA issued a new investor alert, called Tools of the Fraud Trade: Phones and Emotions, warning investors not to send money or provide personal information to a massive IRS impersonation scam timed to coincide with the recent deadline for anyone who filed a federal tax extension this past April. More than 700,000 people have reported getting […]
FINRA Wants ‘Significant Fine’ From MetLife For Variable Annuity Sales
MetLife Inc., the biggest life insurer in the country, said that FINRA will seek a “significant fine” from the company’s broker-dealer unit as part of an investigation into potential violations relating to variable annuities. MetLife stated that it is cooperating with the investigation. The examination centers on possible violations “regarding alleged misrepresentations, suitability, and supervision […]
California Man Indicted For Defrauding Alabama Investor
Daniel Scott Register of Valencia, California was indicted in Calhoun County, Alabama on charges of defrauding an Alabama investor. Register was arrested on October 6 by the Orange County, California Sheriff’s Department. He was then transferred on October 9 to a correctional facility in Los Angeles, and a hold was placed on him for pending […]
Texas Man Convicted Of Securities Fraud
A federal jury on Monday convicted a Rockwall, Texas man of securities fraud arising from an investment scheme he ran, according to U.S. Attorney John Parker of the Northern District of Texas. Mark Lee Cleaton was found guilty on four counts of wire fraud and is facing a maximum penalty of twenty years in prison […]
Financial Adviser Sentenced For Defrauding Disabled Woman
Jodene Beaver has spent the majority of her 56 years dealing with physical and mental impairments. She is able to live on her own with the help of her family who cares for her and work as a grocery-store greeter. Two months after her father died, Beaver placed her trust in Jason Wade Cox, a […]
Fiat Chrysler Investigated For Alleged Securities Fraud
Fiat Chrysler Automobiles N.V. is being investigated for allegedly violating specific sections of the Securities Exchange Act of 1934 by issuing materially misleading information to the investing public pertaining to the company’s compliance with safety recalls. In July, the National Highway Traffic Safety Administration announced an enforcement action and record $105 million fine imposed on […]
FINRA Expels Halcyon Cabot Partners And Bars CEO And CCO
FINRA expelled New York-based Halcyon Cabot Partners, Ltd., and barred Chief Executive Officer Michael Morris and Chief Compliance Officer Ronald Heineman from the securities industry, for fraud, sales practice abuses, and widespread supervisory and anti-money laundering failures. FINRA found that Halcyon, Morris and Heineman engaged in a scheme to conceal a kickback of private placement fees. […]