Articles Posted in SEC Enforcement Actions 2012

SEC Charges Former CEO and Chairman of Mamtek, U.S. with Fraud in the Offer and Sale of Municipal Bonds September, 2012: The Securities and Exchange Commission recently filed suit in U.S. District Court for the Central District of California, charging former CEO and chairman of Mamtek U.S., Bruce Cole, with fraud related to the offer…

SEC Charges Chicago-Based Investment Firm with Misleading Investors in Private Equity Offerings September, 2012: Recently, The Securities and Exchange Commission charged the co-founder of a Chicago-based investment firm with misleading investors in two private equity offerings, and charged the other co-founder with supervisory failures related to the offerings. Advanced Equities Inc. – a broker-dealer and…

SEC Obtains Asset Freeze and Other Relief in Microcap Fraud: September, 2012: Recently, the Securities and Exchange Commission obtained a temporary restraining order against future violations of the antifraud, issuer reporting, books and records, internal controls and officer certification provisions of the federal securities laws. It is alleged these violations occurred in furtherance of a…

SEC Charges New York Stock Exchange for Improper Distribution of Market Data NYSE Agrees to Settle Charges by Paying First-Ever SEC Financial Penalty Against An Exchange September, 2012: The Securities and Exchange Commission recently brought first-of-its-kind charges against the New York Stock Exchange for compliance failures that gave certain customers an improper head start on…

Braas and Schlager Sentenced to Lengthy Prison Terms and Ordered to Pay $53 Million in Restitution for Conducting Financial Fraud September, 2012: Recently, the Commission announced that on September 11 and 12, 2012, Joseph M. Braas, of Lititz, Pennsylvania, and Michael J. Schlager, of Lancaster, Pennsylvania, were sentenced in a criminal action for orchestrating a…

SEC Charges Connecticut-Based Broker With Stealing Investor Funds to Pay Mortgage and Shopping Bills September, 2012: The Securities and Exchange Commission recently charged a broker and his company based in Danbury, Conn., with stealing at least $600,000 from customers who he persuaded to withdraw money from their brokerage accounts he managed at other firms and…

SEC Charges Atlanta-Based Firm for Compliance Failures as Brokers Churned Customer Accounts September, 2012: The Securities and Exchange Commission recently charged three former brokers at an Atlanta-based brokerage firm for “churning” the accounts of customers with conservative investment objectives, causing severe investor losses while the brokers collected handsome fees. The SEC also charged the head…

SEC Charges Asset Manager Lied to Investors, Hid Major Losses While Boasting Remarkable Performance During Financial Crisis September, 2012: The Securities and Exchange Commission recently announced an emergency enforcement action against an asset manager who has boasted remarkable investment success throughout the global financial crisis while allegedly exaggerating the value of the assets he manages…

SEC Shuts Down San Diego-Based Real Estate Investment Fraud September, 2012: The Securities and Exchange Commission recently announced an asset freeze against a San Diego-based firm and its owner accused of running a real estate investment fraud that raised approximately $50 million from hundreds of investors nationwide. The SEC alleges that Western Financial Planning Corporation…

SEC Charges Oregon-Based Investment Adviser for Failing to Disclose Revenue Sharing Payments September, 2012: The Securities and Exchange Commission recently instituted a settled administrative proceeding against two Portland, Oregon-based investment advisory firms and their owner regarding the failure to disclose a revenue-sharing agreement and other potential conflicts of interest to clients. The SEC’s investigation found…