SEC Enforcement Actions 2014

James Y. Lee – South Florida Investment Advisor and Securities Fraud, Misrepresentation and Mismanagement Litigation and Arbitration Attorney

Published on: February 14, 2014 | By Russell L. Forkey, P.A.

Securities and Exchange Commission v. James Y. Lee, et al., Civil Action No. 3:14-cv-00347-LAB-BGS (S.D. Cal.)

SEC Charges James Y. Lee for Defrauding His Advisory Clients

On February 13, 2014, the Securities and Exchange Commission filed charges against James Y. Lee, a resident of La Jolla, California, alleging he defrauded his advisory clients.

Short Selling – Illegal Short Selling Florida Securities and Investment Fraud Litigation and Arbitration Attorney

Published on: February 4, 2014 | By Russell L. Forkey, P.A.

Illegal Short Selling – Florida Illegal Short Selling, Securities and Investment Fraud Litigation and Arbitration Attorney:

Securities and Exchange Commission v. Revelation Capital Management Ltd. and Christopher P.C. Kuchanny, Civil Action No. 14-cv-0645 (S.D.N.Y., filed January 31, 2014)

SEC Charges Bermudian Investment Adviser and Principal for Illegal Short Selling

Michael P. Zenger – Florida Misappropriation of Funds Litigation and Arbitration Attorney

Published on: February 4, 2014 | By Russell L. Forkey, P.A.

South Florida Misappropriation of Funds and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney:

Securities and Exchange Commission v. Michael P. Zenger, Civil Action No. 2:14-cv-00065 (USDC Utah, Filed January 31, 2014)

SEC Obtains Asset Freeze and Other Relief Against Michael P. Zenger

Naked Short Selling Scheme – South Florida Securities and Investment Fraud and Misrepresentation Litigation and FINRA Arbitration Attorney

Published on: January 31, 2014 | By Russell L. Forkey, P.A.

South Florida Naked Short Selling FINRA Arbitration and Litigation Attorney:

The Securities and Exchange Commission recently charged a pair of college professors in Tallahassee, Fla., with perpetrating a complex naked short selling scheme for more than $400,000 in illicit profits.

Abusive naked short selling occurs when shares are sold without having the shares to deliver, and then intentionally failing to deliver the securities within the standard three-day settlement period. An SEC investigation found that Gonul Colak and Milen Kostov repeatedly engaged in a series of sham transactions designed to perpetuate a naked short position as part of an elaborate options trading strategy. Colak and Kostov were required to deliver the securities underlying their short positions within the standard three days. Instead, their sham reset transactions created the illusion that they had delivered the underlying securities when in fact they had taken no steps to do so. They maintained the uncovered naked short positions and profited.

Broker/Dealer Fraud, Misrepresentation, Theft and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney

Published on: January 31, 2014 | By Russell L. Forkey, P.A.

Broker/Dealer Investment and Securities Fraud, Misrepresentation, Mismanagement, Theft and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney:

Securities and Exchange Commission v. David L. Rothman, et al., Civil Action No. 2:12-cv-05412 (E.D. Pa.)

Court Enters Final Judgment Against Broker in Settlement of Claims Arising from Fraudulent Misrepresentations and the Misappropriation of Funds

Berton M. Hochfeld and Hochfeld Capital Management, LLC. – South Florida Hedge Fund Mismanagement, Fraud and Breach of Fiduciary Duty Litigation and Arbitration Attorney

Published on: January 31, 2014 | By Russell L. Forkey, P.A.

South Florida Hedge Fund Mismanagement, Fraud and Breach of Fiduciary Duty Federal and State Court Litigation Attorney:

Securities and Exchange Commission v. Berton M. Hochfeld, et al., Civil Action No. 12-CV-8202 (S.D.N.Y.)

Final Judgments Entered Against Former Hedge Fund Manager and His Company

Equity Fund and Equity Manager Fruad and Mismanagement – South Florida Litigation and Arbitration Attorney

Published on: January 31, 2014 | By Russell L. Forkey, P.A.

Private Equity Fund and Private Equity Fund Management Mismanagement and Fruad – South Florida Federal and State Court Litigation and Arbitration Attorney:

SEC Charges Manhattan-Based Private Equity Manager With Stealing $9 Million in Investor Funds:

The Securities and Exchange Commission recently charged a Manhattan-based private equity manager and his firm with stealing $9 million from investors in their private equity fund.

Hedge Fund Fraud and Misrepresentation – South Florida Hedge Fund Fraud, Misrepresentation and Mismanagement Litigation and FINRA Arbitration Attorney

Published on: January 28, 2014 | By Russell L. Forkey, P.A.

Hedge Fund Fraud, Mismanagement and Misrepresentation – South Florida Litigation and AAA Arbitration Attorney:

Securities and Exchange Commission v. Berton M. Hochfeld, et al, Civil Action No. 12-CV-8202 (S.D.N.Y.)

Final Judgments Entered Against Former Hedge Fund Manager and His Company

Elder, Senior and Retirement Abuse and Exploitation – Ponzi Scheme – South Florida Securities and Investment Fraud and Misrepresentation Litigation and FINRA Arbitration Attorney

Published on: January 28, 2014 | By Russell L. Forkey, P.A.

South Florida Elder, Senior and Retirement Financial Abuse and Exploitation FINRA Arbitration and Litigation Attorney:

Securities and Exchange Commission v. Palladino, et al., Civil Action No. 13-11024-DPW (United States District Court for the District of Massachusetts)

Commonwealth of Massachusetts v. Palladino, Crim. Action Nos. 13-10207, 13-10891; Commonwealth of Massachusetts v. Viking Financial Group, Inc., Crim. Action Nos. 13-10209, 13-10894 (Suffolk Superior Court)

Western Asset Management Company – South Florida Securities and Investment Fraud and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney

Published on: January 28, 2014 | By Russell L. Forkey, P.A.

Western Asset Management Company – South Florida Breach of Fiduciary Duty Cross Trading FINRA Arbitration and Litigation Attorney:

The Securities and Exchange Commission recently announced sanctions against a California-based investment adviser for concealing investor losses that resulted from a coding error and engaging in cross trading that favored some clients over others.

Western Asset Management Company, which is a subsidiary of Legg Mason, agreed to pay more than $21 million to settle the SEC’s charges as well as a related matter announced by the U.S. Department of Labor.