The Wall Street Legal & Regulatory Feed

Securities Industry Commentator by Bill Singer Esq

September 7, 2021





http://www.brokeandbroker.com/6036/finra-awc-nrf/
Take a woman. Put her in a relatively low-level Wall Street job. Put her in a position where she's more likely to fail than succeed. Put her in situations where she either follows orders or else. Then enlist an industry regulator to pretend that everything this vulnerable woman did was on her own volition. After you've blindfolded justice and stuffed her ears, impose sanctions on this same woman in the guise of Wall Street regulation. Despicable. Shameful. Then again, it's how things work on the Street. Certainly, it's part of FINRA's tawdry record of failing to confront sexism,  racism, and discrimination/harassment in the industry.

https://www.advisorhub.com/septuagenarian-broker-accuses-wells-of-reneging-on-promise-of-debt-free-retirement/
Veteran industry reporter Miriam Rozen unveils the troubling predicament of 21-year industry veteran Avery Wilkins, who is 74 years old and has sued Wells Fargo Advisors. Wilkins alleges that Wells promised to forgive his six-figure recruiting loan upon retirement provided he stayed in the saddle until 2018, which he says he did. He said. They said. And we're off to the litigation races!


As set forth under the "Introduction":

Before the Court is the motion for summary judgment of plaintiff Fred Blake, aka Frederick Blake. In his summary judgment motion, Mr. Blake seeks two forms of relief -- an order to confirm an arbitration award issued by the Financial Industry Regulatory Authority Office of Dispute Resolution, and separately, a determination that the debt arising from the arbitration award is non-dischargeable pursuant to Bankruptcy Code Section 523(a)(19). In this decision, the Court addresses the first of these matters - that is, whether the arbitration award should be confirmed. The defendant Anthony Fusco responds that the motion to confirm the arbitration award should be denied because, among other reasons, the arbitration award exhibits a manifest disregard of the law and was tainted by the malfeasance of the arbitration panel.

at Page 2 of the Decision

In granting the Motion to Confirm the Arbitration Award, the Court found in part that:

[M]r. Blake's request to confirm the Award is timely, and that Mr. Blake has shown that the Award should be confirmed. The Court also finds and concludes that under the circumstances present here, it is appropriate to consider Mr. Fusco's arguments in opposition to the confirmation of the Award. And finally, the Court finds and concludes that Mr. Fusco has not shown that the Award should not be confirmed. In particular, the Court finds that Mr. Blake has not shown that the Award was procured by corruption, fraud, or undue means, or that there was evident partiality or corruption in the Arbitrators, or that the Arbitrators were guilty of misconduct, or that the Arbitrators exceeded their powers or manifestly disregarded the law in reaching their decision.

at Page 50 of the Decision

https://www.sec.gov/litigation/litreleases/2021/lr25197.htm
Without admitting or denying the allegations in a Complaint filed in the United States District Court for the District of Nevada, Johnny R. Thomas, Robert C. Potts, Jonathan Brett Woodard, and John C. Francis consented to the entry of final judgments which imposed officer-and-director and penny stock bars against each of them. Further, the Court ordered 
  • Thomas to pay a civil penalty of $240,000, 
  • Potts to pay a civil penalty of $125,000, and 
  • Francis and Woodard each to pay a civil penalty of $120,000
Additionally, the Court permanently enjoined the defendants from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5(b) thereunder and Section 17(a)(2) of the Securities Act of 1933, and from aiding and abetting violations of the reporting provisions of Exchange Act Section 13(a) and Rules 12b-20 (all), 13a-1 (all), 13a-11 (Thomas and Francis), and 13a-13 (Thomas, Woodard, and Francis). Finally, Thomas and Woodard were enjoined from violating the provision requiring officer certification of filings with the Commission, Exchange Act Rule 13a-14; Woodard from violating the books-and-records provisions of Exchange Act Section 13(b)(5) and Rule 13b2-1 thereunder, and aiding and abetting violations of the books-and-records provision of Exchange Act Section 13(b)(2)(A); and Thomas from violating the corporate insider disclosure obligations under Section 16(a) of the Exchange Act and Rule 16a-3 thereunder. Separately, without admitting or denying the SEC's findings, Woodard consented to an SEC's Order which suspends him from appearing or practicing as an accountant before the Commission pursuant to Rule 102(e)(3) of the Commission's Rules of Practice. As alleged in part in the SEC Release:

On August 19, 2021, the Securities and Exchange Commission obtained final judgments against four former executives of Blue Earth Inc., a former alternative and renewable energy services company, for their alleged roles in defrauding investors by materially misrepresenting the company's relationship with a key customer, the scope of its business operations, and financial condition.

The SEC's complaint, filed in the United States District Court for the District of Nevada on June 28, 2019, alleged that Blue Earth's former executives - Johnny R. Thomas, John C. Francis, Jonathan Brett Woodward, and Robert C. Potts - materially misrepresented Blue Earth's ability to develop, build, own, and operate at least seven combined heat-and-power plants from at least March 2014 through at least March 2015. The defendants allegedly created the false impression that Blue Earth had secured contracts for these plants, which would purportedly transform its business from an unprofitable venture to a profitable one. Blue Earth allegedly bolstered this illusion by materially inflating by more than 400% the value of a "Construction in Progress" asset. As alleged in the complaint, Blue Earth ultimately secured contracts for only two power plants, and its ability to perform the second contract and to secure additional contracts diminished significantly by late 2014. Blue Earth filed for bankruptcy in March 2016.

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