The New Hampshire Bureau of Securities Regulation has launched an investigation of Merrill Lynch relating to the sales practices of two former Merrill Lynch advisors, Charles Kenahan and Dermod Cavanaugh. The New Hampshire state regulator is investigating claims of excessive trading made by Craig Benson, former governor of New Hampshire. According to that report, settlement talks between the state regulator and Merrill Lynch are on-going.
This is the fourth of several posts detailing the CFP Board enforcement process. This post will focus on what happens in the event a respondent is found to be in default.
Dain F. Stokes, a former advisor at LPL Financial, has been barred by the U.S. Securities and Exchange Commission (“SEC”) for allegedly soliciting investments in a fraudulent charity which Stokes claimed was associated with popular musician Taylor Swift. The SEC said it also plans to order Stokes to pay restitution and a fine of $20,000. Stokes was also barred by FINRA in September 2019 for allegedly failing to respond to FINRA’s request for information.
The U.S. Securities and Exchange Commission (“SEC”) issued a cease and desist order against Potamus Trading LLC and its former CEO, Eric J. Pritchett. According to the SEC, Potamus and Pritchett “portrayed the firm as filling its clients’ orders on a principal basis by trading from its own inventory of securities or risking its capital in the market.” However, the SEC said that the firm “filled the vast majority of its clients’ orders by engaging in net trading” and “rarely traded from inventory or risked its capital[.]” The SEC alleged that this conduct took place between September 2013 and March 2017.
James Eccleston achieved the highest rating in both Legal Ability and Ethical Standards from Martindale Hubbell for 2020. This is a reflection of the confidential opinions of members of the Bar and Judiciary.
Illinois broker Mark Miller and his investment firm, Foremost Trading LLC, have agreed to pay $1.1 million to settle claims brought by the Commodity Futures Trading Commission (“CFTC”). The payment consists of $450,000 in fines and $700,000 in restitution. Additionally, Miller is suspended from trading on any CFTC-designated exchange, all other CFTC-registered entities, and all commodity interests for a period of two years.
Final judgment has been entered against Temenos Advisory Inc. and its former CEO George Taylor, the SEC announced. The SEC had charged Temenos and Taylor with putting investor funds in unsuitable investments and concealing commissions. In total, Temenos and Taylor are ordered to pay more than $2 million. The entry of judgment concludes a case that began with the SEC charging Temenos and Taylor in July 2018.
In connection with an alleged $6.3 million Ponzi scheme, Phillip Roy Wasserman and Kenneth Murry Rossman (collectively, “Defendants”) have been charged by federal prosecutors with mail fraud, wire fraud, and conspiracy to commit wire and mail fraud. Defendants are alleged to have targeted elderly individuals and convinced those individuals to liquidate traditional investments in order to invest in “FastLife,” an insurance venture by Wasserman. Wasserman and Rossman are alleged to have made fraudulent misrepresentations and to have concealed material information when soliciting investments in FastLife.
This is the second of several posts detailing the CFP Board enforcement process. The first post detailed the CFP Board’s investigation process. This post will focus on one potential outcome of a CFP Board investigation: an interim suspension.
The CFP Board announced a wide array of new enforcement activities, which includes spending $5 million to conduct background checks on all CFP professionals. This move comes after a task force found “significant failures in the execution of the CFP Board’s enforcement program[.]” Additionally, a July 2019 story in The Wall Street Journal detailed how the CFP Board website failed to inform users about past disciplinary issues for CFP professionals. The Wall Street Journal found that more than 5,000 advisors who were listed on the CFP Board website as having a clean disciplinary record actually had a disciplinary history.
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The Securities and Exchange Commission (SEC) has charged Prime Group Holdings LLC, a private equity firm specializing in alternative real estate asset investments, with
inadequate disclosure of millions of dollars in real estate brokerage fees paid to a brokerage firm owned by its CEO.
Corey Maple, co-founder of non-traded REIT sponsor Legendary Capital, has agreed to a $100,000 civil penalty to settle charges brought by the Securities and Exchange Commission (SEC).
The Financial Industry Regulatory Authority (FINRA) has fined and censured broker-dealer Network 1 Financial Securities and its chief compliance officer for violating Regulation Best Interest (Reg BI).
