The Wall Street Legal & Regulatory Feed
Securities Industry Commentator by Bill Singer Esq
September 11, 2018
IN MEMORIAM 9/11
SEC Charges Two Brokers With Defrauding Customers (SEC Release 2018-183)
https://www.sec.gov/news/press-release/2018-183
https://www.sec.gov/news/press-release/2018-183
In separate Complaints filed ih the United States District Court for the Southern District of New York, the SEC alleged that Emil Botvinnik and Jovannie Aquino recommended short-term trading that was "almost guaranteed to lose money for their customers," who are characterized as included many who were at or near retirement age. The customers allegedly lost about $3.6 million and the brokers generated about $4.6 million in commissions. READ the FULL TEXT SEC
Botvinnik Complaint http://www.sec.gov/litigation/complaints/2018/comp-pr2018-183-botvinnik.pdf
Aquino Complaint http://www.sec.gov/litigation/complaints/2018/comp-pr2018-183-aqino.pdf
Fort Lauderdale Broker Pleads Guilty for Involvement in $16 Million Precious Metals and Securities (DOJ Release)
https://www.justice.gov/usao-sdfl/pr/fort-lauderdale-broker-pleads-guilty-involvement-16-million-precious-metals-and
https://www.justice.gov/usao-sdfl/pr/fort-lauderdale-broker-pleads-guilty-involvement-16-million-precious-metals-and
Federal prosecutors alleged that from January 2010, through October 2013, Salvatore Colonna worked as a broker for Liberty International Financial Services and related entities, and he conspired with other to obtain over $16 million from investors by fraudulently representing that their money would be used to buy precious metals, that the investors would receive substantial dividends on Liberty investments; and he would cap his commissions to 5% to 15%. Only $3 million was purportedly returned to investors after a substantial amount was paid to Liberty's founders, with Colonna allegedly receiving over $2 million in commissions. Colonna pled guilty in the United States District court for the Southern District of Florida to one count of conspiracy to commit wire fraud.
The Daily Double at the SEC. Place Your Bets. Hands off the Table:
SEC Charges Internet Sports Betting Fund with Registration Violations (SEC Litigation Release No. 24263)https://www.sec.gov/litigation/litreleases/2018/lr24263.htm / September 10, 2018In a Complaint filed in the United States District Court for the District of Nevada, the SEC charged Contrarian Investments, LLC with conducting an unregistered offering of securities in violation of Sections 5(a) and 5(c) of the Securities Act of 1933. In 2016 and 2017, via a general solicitation, Contrarian raised over $400,000 from more than 30 investors (allegedly without determining their accredited status) pursuant to a 2015 Nevada state law that allowed Nevada-based entities to solicit and collect funds from investors, aggregate those funds, place wagers on certain sporting events, and split the profits among the investors. Without admitting or denying the SEC's findings, Contrarian entered into a settlement whereby the company consented to the entry of a judgment ordering a permanent injunction against future violation of Sections 5(a) and 5(c) and requiring it to send a copy of the final judgment to each investor. READ the FULL TEXT Complaint https://www.sec.gov/litigation/complaints/2018/comp24263.pdfSEC Charges Internet Sports Betting Fund with Registration Violations (SEC Litigation Release No. 24264)https://www.sec.gov/litigation/litreleases/2018/lr24264.htmIn a Complaint filed in the United States District Court for the District of Nevada, the SEC charged Nevada Sports Investment Group, LP with conducting an unregistered offering of securities in violation of Sections 5(a) and 5(c) of the Securities Act of 1933. From 2015 through 2017, via a general solicitation, Contrarian raised over $1,000,000 from more than 30 investors (allegedly without determining their accredited status) pursuant to a 2015 Nevada state law that allowed Nevada-based entities to solicit and collect funds from investors, aggregate those funds, place wagers on certain sporting events, and split the profits among the investors. Without admitting or denying the SEC's findings, Contrarian entered into a settlement whereby the company consented to the entry of a judgment ordering a permanent injunction against future violation of Sections 5(a) and 5(c) and requiring it to send a copy of the final judgment to each investor. READ the FULL TEXT Complaint https://www.sec.gov/litigation/complaints/2018/comp24264.pdf
Canadian Man Sentenced to over 11 Years in Federal Prison for Running Telemarketing Scheme that Bilked 60,000+ Victims (DOJ Release)https://www.justice.gov/usao-cdca/pr/canadian-man-sentenced-over-11-years-federal-prison-running-telemarketing-scheme-bilkedFollowing a five-day jury trial in the United States District Court for the Middle District of California, Mark Eldon Wilson was convicted of seven counts of mail fraud and two counts of wire fraud for orchestrating a telemarketing scheme that falsely promised credit card fraud protection and defrauded at least 60,000 primarily elderly victims out of more than $18 million. Telemarketers sold the victims a non-existent credit card "protection" service for approximately $300 that purportedly would be in effect for 10 years with a 100 percent money-back guarantee -- many victims credit cards were charged without their authorization. Wilson was sentenced to 135 months in federal prison .