Securities and Securities Fraud

Anthony John Johnson – Florida Civil Conspiracy and Investment Fraud FINRA Arbitration and Litigation Attorney

Published on: September 10, 2013 | By Russell L. Forkey, P.A.

SEC Enforcement Proceedings:

Anthony John Johnson Sanctioned:

The Securities and Exchange Commission recently announced that Anthony John Johnson (Johnson) has been barred from the securities industry. The sanction was ordered in an administrative proceeding before an administrative law judge, following an August 2011 conviction for conspiracy to commit securities, mail, and wire fraud and an August 2012 conviction for mail fraud. Some of his wrongdoing occurred between March 2002 and March 2003, while associated with Park Capital Securities, LLC, where he engaged in manipulative trading and where brokers under his direction engaged in misrepresentations and material omissions to induce customers to purchase and refrain from selling certain stock. From approximately August 2010 to April 2011, Johnson operated a Ponzi scheme while associated with RAHFCO Management Group LLC, an unregistered investment adviser.

Prime Bank Investment Fraud – South Florida Securities and Investment Fraud Litigation and FINRA Arbitration Attorney

Published on: September 9, 2013 | By Russell L. Forkey, P.A.

Securities and Exchange Commission v. Bernard H. Butts, Jr., Fotios Geivelis, Jr., also known as Frank Anastasio, Worldwide Funding III Limited LLC, Douglas J. Anisky, Sidney Banner, Express Commercial Capital LLC, James Baggs (Defendants), Bernard H. Butts, Jr. PA, Butts Holding Corporation, Margaret A. Hering, Global Worldwide Funding Ventures, Inc., and PW Consulting Group LLC (Relief Defendants), Civil Action No. 13-23115-CIV-MARTINEZ-MCALILEY (Southern District of Florida)

SEC Halts Florida-Based Prime Bank Investment Scheme

The Securities and Exchange Commission recently announced that it has obtained an emergency court order to halt a prime bank investment scheme by a Miami attorney and others who have promised investors exorbitant returns to be derived from a program based on the trading of bank instruments.

Ronald Feldstein, Mara Capital Management and Vita Health of America – Florida Free-Riding Investment Fraud FINRA Arbitration Attorney

Published on: September 6, 2013 | By Russell L. Forkey, P.A.

Securities and Exchange Commission v. Ronald Feldstein, Civil Action No. 13 Civ. 6168 (S.D.N.Y.)

SEC Charges Perpetrator of Fraudulent Free-Riding and Securities Offering Schemes

The Securities and Exchange Commission (“Commission”) recently filed a complaint in the United States District Court for the Southern District of New York charging Ronald Feldstein, Mara Capital Management LLC (“Mara Capital”), and Vita Health of America LLC (“Vita Health”), with orchestrating an illegal “free-riding” scheme resulting in over $2 million in losses to three broker-dealers, and charging Feldstein with bilking individual investors out of more than $450,000.

False and Misleading Radio and Television Broker/Dealer Advertising – South Florida Direct (Alternative) Investment and Private Placement Fraud FINRA Arbitration and Litigation Attorney

Published on: September 1, 2013 | By Russell L. Forkey, P.A.

Solicitation of Investment Clients by Broker/Dealers and Investment Objectives Through the Use of Radio and Television Programing – South Florida False and Misleading Advertising FINRA Arbitration and Litigation Attorney

The Financial Industry Regulatory Authority, Inc. (FINRA) is a self-regulatory authority assigned the responsibility, by the Securities and Exchange Commission, to license, regulate and discipline securities broker/dealers and their employees, including account executives. In the event that FINRA elects to institute and enforcement action, firms and licensed individuals have the responsibility to reflect such action of their U-4 and/or U-5 filings, which can be viewed on the FINRA website under the broker-check section of the site or by viewing the monthly disciplinary information also provided on the FINRA site.

The monthly disciplinary information is referenced on the site generally in alphabetical order. This post relates to the following company or individuals. If the reader would like to review the entire FINRA release or the broker-check information concerning this matter, you can follow these highlighted links:

South Florida Selling Away, Approved and Unapproved Outside Business Activity and Negligent Supervision FINRA Arbitration and Litigation Attorney

Published on: September 1, 2013 | By Russell L. Forkey, P.A.

South Florida Selling Away, Approved, Unapproved Outside Business Activity and Negligent Supervision FINRA Arbitration and Litigation Attorney:

The Financial Industry Regulatory Authority, Inc. (FINRA) is a self-regulatory authority assigned the responsibility, by the Securities and Exchange Commission, to license, regulate and discipline securities broker/dealers and their employees, including account executives. In the event that FINRA elects to institute and enforcement action, firms and licensed individuals have the responsibility to reflect such action of their U-4 and/or U-5 filings, which can be viewed on the FINRA website under the broker-check section of the site or by viewing the monthly disciplinary information also provided on the FINRA site.

The monthly disciplinary information is referenced on the site generally in alphabetical order. This post relates to the following company or individuals. If the reader would like to review the entire FINRA release or the broker-check information concerning this matter, you can follow these highlighted links:

Hedge Funds – Florida Hedge Fund Investment Loss and Mismanagement Litigation and Arbitration Attorney

Published on: August 30, 2013 | By Russell L. Forkey, P.A.

Hedge Funds – Investment Loss and Mismanagement Federal and State Litigation Attorney:

“Hedge fund” is a general, non-legal term used to describe private, unregistered investment pools that traditionally have been limited to sophisticated, wealthy investors. Hedge funds are not mutual funds and, as such, are not subject to the numerous regulations that apply to mutual funds for the protection of investors – including regulations requiring a certain degree of liquidity, regulations requiring that mutual fund shares be redeemable at any time, regulations protecting against conflicts of interest, regulations to assure fairness in the pricing of fund shares, disclosure regulations, regulations limiting the use of leverage, and more.

“Funds of hedge funds” are nvestment companies that invest in hedge funds. Some, but not all, register with the SEC and file semi-annual reports. They often have lower minimum investment thresholds than traditional, unregistered hedge funds and can sell their shares to a larger number of investors. Like hedge funds, funds of hedge funds are not mutual funds. Unlike open-end mutual funds, funds of hedge funds offer very limited rights of redemption. And, unlike ETFs, their shares are not typically listed on an exchange.

Income Mutual Fund – South Florida Mutual Fund Abuse and Loss FINRA Arbitration and Litigation Attorney

Published on: August 30, 2013 | By Russell L. Forkey, P.A.

Income and Growth Mutual Fund Abuse, Fraud and Mismanagement Principal and Income Loss FINRA Arbitration and Litigation Attorney:

Income Mutual Funds are designed to produce current income for shareholders. Some examples of income mutual funds are municipal, international and junk bond (high-yield) funds. Several kinds of equity-oriented funds also can have income as their primary investment objectives, such as utilities income funds and equity income funds.

It is important to remember that mutual funds are offered by prospectus. The prospectus will provide all necessary information for an informed investor to make an intelligent investment decision. For example, a prospectus may contain information about such things as:

Registration and Regulation D – Florida Investment and Securities Fraud Litigation and FINRA Arbitration Attorney

Published on: August 28, 2013 | By Russell L. Forkey, P.A.

Securities and Exchange Commission v. Jonathan C. Gilchrist, Civil Action No. 4:13-cv-00163 (S.D.Tex.)

SEC Obtains Final Judgment Against Jonathan C. Gilchrist for Fraud and Registration Violations

The Securities and Exchange Commission recently announced that on August 15, 2013, the Honorable Lynn N. Hughes of the United States District Court for the Southern District of Texas entered summary judgment in favor of the Commission and against Jonathan C. Gilchrist finding that Gilchrist had violated the antifraud and registration provisions of the federal securities laws. On August 16, 2013, Judge Hughes entered a final judgment imposing monetary and other relief.

Retirement Fraud, Mismanagement and Breach of Fiduciary Duty Litigation and FINRA Arbitration Attorney

Published on: August 28, 2013 | By Russell L. Forkey, P.A.

Senior and Retirement Fraud, Misrepresentation and Breach of Fiduciary Duty Litigation and FINRA Arbitration Attorney:

Commission Charges Indiana Resident with Conducting Ponzi Scheme Targeting Retirement Savings of Investors

The Securities and Exchange Commission (“Commission”) recently charged a Noblesville, Ind., resident and his company with defrauding investors in a Ponzi scheme that targeted retirement savings.

High Yield – Junk Bond – Florida Investment Loss Litigation and FINRA Arbitration Attorney

Published on: August 23, 2013 | By Russell L. Forkey, P.A.

High Yield – Junk Bond Investment Loss – Florida Litigation and FINRA Arbitration Attorney:

A High Yield or Junk Bond is a bond with a credit rating of BB or lower by a recognized rating agency such as Fitch Ratings, Moody’s Investors Services, Morningstar Rating System and others. Although the term Junk Bond is commonly used, issuers and holders of such securities prefer the securities be call high yield bonds. Junk Bonds are usually issued by companies without long track records of sales and earnings, or by those with questionable credit strength. Since they are more volatile and pay higher yields than investment grade bonds, many risk-oriented investors specialize in trading them. The phrase “risk-oriented” being the operative term.

If you are an average investor, with fairly conservative investment objectives, these types of bonds are not for you. If you own these bonds, the current yield section of your statement, more likely than not, reflects a yield of around 10% or higher but compare that against the current market value. At the end of the day, especially when comparing the maturity of the bond to your age or when you might need the principal returned, what is more important, high risk yield or the protection of your principal.