SEC Enforcement Actions – October, 2011

Florida and Federal Securities and Investment Fraud 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.

October, 2011:

The Securities and Exchange Commission recently sanctioned two electronic stock exchanges and a broker-dealer owned by Direct Edge Holdings LLC for violations of U.S. securities laws arising out of weak internal controls that resulted in millions of dollars in trading losses and a systems outage. Read More.

October, 2011:

SECURITIES AND EXCHANGE COMMISSION LITIGATION RELEASE NO. 22125

SEC v. Wall Street Capital Funding LLC, Philip Cardwell, Roy Campbell, and Aaron Hume, Civil Action No. 11-cv-20413-DLG (S.D. Fla.)

On October 13, 2011 the U.S. District Court for the Southern District of Florida entered judgments against a group of penny-stock promoters arising out of their repackaging of “news” issued by a series of sham energy companies. Read More.

October, 2011:

Litigation Release No. 22126

Securities and Exchange Commission v. Joseph P. Cillo, Civil Action No. 8:11-cv-02320 (M.D. Fla. October 14, 2011)

Recently, the Securities and Exchange Commission (“Commission”) filed a Complaint for Injunctive and Other Relief (“Complaint”) in the United States District Court for the Middle District of Florida in Tampa against Joseph P. Cillo (“Cillo”). Read More.

October, 2011:

Securities and Exchange Commission v. Daniel W. Nodurft, Case No. 8:09-cv-866-T26/TGW (M.D. Fla.)

The Securities and Exchange Commission recently announced that the United States District Court for the Middle District of Florida entered a final judgment against Daniel W. Nodurft permanently restraining and enjoining him from future violation of Section 5 and Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933 (“Securities Act”). Read More.

October, 2011:

Litigation Release No. 22133

Securities and Exchange Commission v. Long Term-Short Term, Inc. and Freddie Rick, Civil Action No. 1:11-cv-1127 (E.D.Va)

SEC Charges Long Term-Short Term, Inc., d/b/a BetterTrades, and Its President with Securities Law Violations. Read More.

October, 2011:

The Securities and Exchange Commission (SEC) recently charged Citigroup’s principal U.S. broker-dealer subsidiary with misleading investors about a $1 billion collateralized debt obligation (CDO) tied to the U.S. housing market in which Citigroup bet against investors as the housing market showed signs of distress. Read More.

October, 2011:

The Securities and Exchange Commission (SEC) recently charged multinational banking conglomerate Banco Espirito Santo S.A. (BES) with violations of the broker-dealer and investment adviser registration provisions and the securities transaction registration provisions of the federal securities laws. Read More.