SEC Enforcement Actions – January, 2012

Securities and Investment Fraud, Misrepresentation and Statutory Violation Litigation and FINRA Arbitration Attorney, Russell L. Forkey, Esq.

The Securities and Exchange Commission periodically announces enforcement actions that have recently been filed by it. Periodically, we review these actions and provide selective information concerning what we feel relate to important issues or matters that have a wide alleged impact on investors. Please keep in mind that further review should be undertaken, by the reader, related to those matters in which a final judgment or consent decree has not been referenced.

January, 2012:

Securities and Exchange Commission v. Chalmer E. Detling, II, Esq., Civil Action No. 1:11 cv 4565, United States District Court, Northern District of Georgia, Atlanta Division

SEC CHARGES ATLANTA-BASED ATTORNEY WITH FRAUD IN THE OFFER AND SALE OF MUNICIPAL BONDS. Read More.

January, 2012:

Securities and Exchange Commission v. Charles A. Aiken, et al., Civil Action No. CA 5:11-1018, United States District Court, Southern District of West Virginia

SEC CHARGES CHARLES A. AIKEN AND AIKEN CONTINENTAL, L.L.C. WITH FRAUD IN THE OFFER AND SALE OF MUNICIPAL BONDS. Read More.

January, 2012:

SEC Charges Life Settlements Firm and Three Executives with Disclosure and Accounting Fraud

CEO and General Counsel Additionally Charged With Insider Trading

The Securities and Exchange Commission recently charged Texas-based financial services firm Life Partners Holdings Inc. and three of its senior executives for their involvement in a fraudulent disclosure and accounting scheme involving life settlements. Read More.

January, 2012:

In the Matter of William Echeverri

Recently, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions (Order) against William Echeverri. Echeverri, 40, is a resident of Park Ridge, NJ. The Order finds that Echeverri was a registered representative associated with broker-dealers registered with the Commission, and that on December 27, 2011, a final judgment was entered by consent against Echeverri, enjoining him from violating Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder, in the civil action SEC v. William Echeverri, et al., Civil Action No. 2:11-cv-07314 (D.N.J.). Read More.

January, 2012:

Securities and Exchange Commission v. JBI, Inc., John Bordynuik and Ronald Baldwin, Jr., Civil Action No. 1:12-cv-10012, United States District Court, District of Massachusetts

SEC CHARGES COMPANY AND ITS OFFICERS WITH ACCOUNTING FRAUD. Read More.

January, 2012:

Securities and Exchange Commission v. Todd Farha, et al., Civil Action No. 8:12-cv-00047-SDM-MAP (M.D. Fla., January 9, 2012)

SEC BRINGS FRAUD AND INSIDER TRADING CHARGES AGAINST THREE FORMER WELLCARE EXECUTIVES. Read More.

January, 2012:

SEC v. Allen E. Weintraub and AWMS Acquisitions, Inc., d/b/a Sterling Global Holdings, Case No. 11-21549-CIV-HUCK/BANDSTRA (S.D.Fla.)

SEC WINS JUDGMENTS AGAINST ALLEN E. WEINTRAUB AND AWMS ACQUISITIONS, INC. FOR MAKING PHONY TENDER OFFERS FOR EASTMAN KODAK AND AMR. Read More.

January, 2012:

SEC v. Earl C. Arrowood and Parker H. “Pete” Petit, Civil Action No. 1:12-cv-00082-RWS

SEC Charges Earl C. Arrowood and Parker H. “Pete” Petit with Insider Trading. Read More.

January, 2012:

United States Securities Exchange Commission v. Imperiali, Inc., Daniel Imperato, Charles Fiscina, and Lawrence O’Donnell Civil Action No. 9:12-cv-80021 (S.D. Fla.)(January 9, 2012)

SEC Charges Issuer, Officers and Auditor with Fraud. Read More.

January, 2012:

SEC Charges UBS Global Asset Management for Pricing Violations in Mutual Fund Portfolios. Read More.

January, 2012:

SEC V. BANKATLANTIC BANCORP., INC. AND ALAN LEVAN (UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF FLORIDA, CASE NO. 0:12-CV60082, FILED JANUARY 18, 2012). Read More.

January, 2012:

SEC Obtains Emergency Relief Against St. Louis-Based Private Investment Funds after Charging Them and Their Principal with Fraud. Read More.

January, 2012:

SEC v. Spyridon Adondakis, Anthony Chiasson, Sandeep Goyal, Jon Horvath, Danny Kuo, Todd Newman, Jesse Tortora, Diamondback Capital Management, LLC, and Level Global Investors, L.P., Civil Action 12-CV-0409 (SDNY)(PGG)

SEC Charges Seven Fund Managers and Analysts In Insider Trading Scheme, and Also Charges Hedge Fund Firms Diamondback Capital and Level Global. Read More.

January, 2012:

The Securities and Exchange Commission recently announced that Diamondback Capital Management LLC has agreed to pay more than $9 million to settle insider-trading charges brought by the Commission on Jan. 18. The proposed settlement is subject to the approval of Judge Paul G. Gardephe of the U.S. District Court for the Southern District of New York. As part of the proposed settlement, the Stamford, Conn.-based hedge fund adviser also has submitted a statement of facts to the SEC and federal prosecutors, and entered into a non-prosecution agreement with the U.S. Attorney’s Office for the Southern District of New York. Read More.

January, 2012:

The Securities and Exchange Commission recently charged a Fort Lauderdale-based firm and its founder with conducting a fraudulent boiler room scheme in which they hyped stock in two thinly-traded penny stock companies while behind the scenes they sold the same stock themselves for illegal profits.

The SEC alleges that First Resource Group LLC and its principal David H. Stern employed telemarketers who fraudulently solicited brokers to purchase stock in TrinityCare Senior Living Inc. and Cytta Corporation. While recommending the securities in these two microcap companies, Stern sold First Resource’s shares of TrinityCare and Cytta stock unbeknownst to investors who were purchasing them – a practice known as scalping. As Stern was selling the stocks, he also purchased small amounts in order to create the false appearance of legitimate trading activity and induce investors to purchase shares in both companies. Read More.

January, 2012:

SEC v. Igors Nagaicevs, Case No. CV-12-0413 EDL (N.D. Cal. filed Jan. 26, 2012); In the Matter of Alchemy Ventures, Inc., KM Capital Management, LLC, Zanshin Enterprises, LLC, Mark H. Rogers, Steven D. Hotovec, Joshua A. Klein, Yisroel M. Wachs, Frank K. McDonald, and Douglas G. Frederick. Read More.

January, 2012:

SECURITIES AND EXCHANGE COMMISSION v. ROBERT CHIU (A/K/A CHI HUNG CHIU), Civil Action No. CV-12-00200-PHX-JWS (JWS) (D. Ariz.) (Filed Jan. 30, 2012)

SECURITIES AND EXCHANGE COMMISSION v. JAMES LI (A/K/A CHING HUA LI), THOMAS CHOW (A/K/A MAN KIT CHOW), ROGER KAO (A/K/A CHAO CHUN KAO), CHRISTOPHER LIU (A/K/A CHI LEI LIU), AND WAYNE A. PRATT, Civil Action No. CV-11-1712-PHX-SRB (SRB) (D. Ariz.) (Filed Aug. 30, 2011). Read More.

January, 2012:

SECURITIES AND EXCHANGE COMMISSION v. CHRISTOPHER T. VULLIEZ, ET AL. Civil Action No. 11-cv-3458 (RMB) (S.D.N.Y.)

SEC OBTAINS FINAL JUDGMENTS AGAI
NST INVESTMENT ADVISER CHRISTOPHER T. VULLIEZ AND AMPHOR ADVISORS, LLC. Read More.