SEC Enforcement Actions – December, 2011

Securities and Investment Fraud and Misrepresentation 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.

December, 2011:

Securities and Exchange Commission v. David Ronald Allen, et al. Civil Action No. 3:11-CV-882-O (N.D. Tex.)

COURT ENTERS FINAL JUDGMENTS AGAINST CHINA VOICE HOLDING CORP. AND ITS FORMER CFO, DAVID RONALD ALLEN

Recently, the Securities and Exchange Commission announced that the Honorable Reed O’Connor, United States District Judge for the Northern District of Texas, entered a final judgment against David Ronald Allen, the co-founder and former Chief Financial Officer and President of China Voice Holding Corp., to settle charges that he made false and misleading statements and material omissions regarding China Voice, selectively disclosed material, non-public information regarding the company, aided and abetted an unregistered broker, and operated a Ponzi scheme. Read More.

December, 2011:

Securities and Exchange Commission v. Integrity Financial AZ, LLC, Steven R. Long, Stanley M. Paulic, Walter W. Knitter, and Robert C. Koeller Civil Action No. 10-CV-782 (SO) (N.D. Ohio filed Apr. 15, 2010)

COURT ORDERS INTEGRITY FINANCIAL FOUNDERS TO PAY $4.2 MILLION FOR OFFERING FRAUD CONNECTED TO ARIZONA REAL ESTATE

The U.S. Securities and Exchange Commission (Commission) recently announced that, on November 23, 2011, the U.S. District Court for the Northern District of Ohio entered final judgments against Steven R. Long and Stanley M. Paulic in a Commission injunctive action, United States Securities and Exchange Commission v. Integrity Financial AZ, LLC, Steven R. Long, Stanley M. Paulic, Walter W. Knitter, and Robert C. Koeller, Civil Action No. 10-CV-782 (SO) (N.D. Ohio filed Apr. 15, 2010). Read More.

December, 2011:

United States Securities Exchange Commission v. Richard Dalton and Universal Consulting Resources LLC, Defendants, and Marie Dalton, Relief Defendant, Civil Action No. 10-CV-02794-REB-KLM (D. Colo.)

SEC RESOLVES FRAUD-BASED LAWSUIT AGAINST DENVER-AREA COMPANY AND ITS OWNER. Read More.

December, 2011:

Securities and Exchange Commission v. Michael R. Balboa and Gilles T. De Charsonville, Civil Action No. 8731 (S.D.N.Y. filed December 1, 2011)

SEC CHARGES HEDGE FUND MANAGER AND BROKER WITH MULTI-MILLION DOLLAR OVERVALUATION SCHEME. Read More.

December, 2011:

Securities and Exchange Commission v. The Milan Group, Inc., a/k/a The Milan Trading Group, Inc., Frank L. Pavlico III, a/k/a Frank Lorenzo, Brynee K. Baylor, Baylor & Jackson, P.L.L.C., Mia C. Baldassari, Elmo Baldassari, Brett A. Cooper, Global Funding Systems, LLC, GPH Holdings, LLC, Dawn R. Jackson, Patrick T. Lewis, Susan C. Kevra-Shiner, a/k/a Susan C. Kevra, The Law Office of Susan C. Kevra Civil Action No. 11-cv-02132 (RMC) (D.D.C. Nov. 30, 2011)

SEC HALTS PRIME BANK SCHEME OPERATED BY D.C. LAW FIRM AND PENNSYLVANIA COMPANY. Read More.

December, 2011:

SEC Charges Wachovia With Fraudulent Bid Rigging in Municipal Bond Proceeds

Wachovia Agrees to $148 Million Settlement With SEC and Other Authorities

The Securities and Exchange Commission (SEC) recently charged Wachovia Bank N.A. with fraudulently engaging in secret arrangements with bidding agents to improperly win business from municipalities and guarantee itself profits in the reinvestment of municipal bond proceeds. Read More.

December, 2011:

Securities and Exchange Commission v. Geoffrey J. Eiten and National Financial Communications Corp., 1:11-CV-12185 (District of Massachusetts, Complaint filed December 12, 2011).

SEC CHARGES MASSACHUSETTS-BASED PENNY STOCK PROMOTER WITH MAKING FRAUDULENT STATEMENTS. Read More.

December, 2011:

SEC Charges “Shell Packagers” and Several Others in Penny Stock Scheme

Recently, the Securities and Exchange Commission charged a shell packaging firm and several others involved in a penny stock scheme to issue purportedly unrestricted shares in the public markets. Read More.

December, 2011:

SEC v. Marcin Malarz et al., Case No. 11-cv-8803 (N.D. Ill., filed December 12, 2011).

SEC Charges Three Individuals in Chicago-Area Offering Fraud

The Securities and Exchange Commission recently announced that it filed a civil injunctive action alleging fraud in the unregistered offer and sale of securities by Defendants Marcin Malarz (“Malarz”), Jacek Sienkiewicz (“Sienkiewicz”), and Arthur Lin (“Lin”) (collectively, “Defendants”). Read More.

December, 2011:

SEC v. Myron Weiner, Civil Action No. 11-CV-5731 (E.D.N.Y.) (DLI)(RER)

SEC Obtains Injunction Against Myron Weiner for Unregistered Sales of Spongetech Delivery Systems, Inc. Stock; Weiner Ordered to Pay Over $1.3 Million. Read More.

December, 2011:

SEC v. Heart Tronics, Inc., et al., Case No. SACV-11-1962-JVS (ANx) (C.D. Cal.)

SEC Charges Heart Tronics, Inc. and Six Individuals in Connection with a Series of Fraudulent Schemes Pumping Company Stock. Read More.

December, 2011:

SEC v. GE Funding Capital Market Services:

The Securities and Exchange Commission recently charged GE Funding Capital Market Services with securities fraud for participating in a wide-ranging scheme involving the reinvestment of proceeds from the sale of municipal securities. Read More.

December, 2011:

Securities and Exchange Commission v. Evolution Capital Advisors, et al., Civ. Action No. 4:11-cv-02945 (United States District Court for the Southern District of Texas, Houston Division) (Miller, J.). Read More.