SEC Press Release: Hedge Fund Fraud
(Mar 2011)
SEC Charges Hedge Fund Managers with Fraud
The U.S. Securities and Exchange Commission (SEC) issued a press release today announcing that it had
"charged a hedge fund investment advisory firm and its two founders with orchestrating a multi-faceted scheme to defraud clients and failing to comply with fiduciary obligations."
The founders, Verzili and Rodriguez of Juno Mother Earth Asset Management LLC allegedly misappropriated client assets by using these assets for the fund's...
SEC Press Release: Life Settlement Fund Fraud
(Mar 2011)
SEC Charges Former UBS Financial Adviser With Defrauding Life Settlement Fund Investors
The U.S. Securities and Exchange Commission (SEC) issued a press release today announcing that they
"charged a former financial adviser at UBS Financial Services LLC with misappropriating $3.3 million in a scheme that included bilking investors in a private investment fund he established."
Kobayashi of UBS, Walnut Creek office, California, established Life Settlement Partners LLC, a pooled...
FINRA Press Release: Improper Marketing
(Jan 2011)
FINRA Orders Schwab to Pay $18 Million to Investors for Improper Marketing of YieldPlus Bond Fund
The Financial Industry Regulatory Authority (FINRA) issued a press release today announcing that
"it has ordered Charles Schwab & Company, Inc., to pay $18 million into a Fair Fund to be established by the Securities and Exchange Commission (SEC) to repay investors in YieldPlus, an ultra short-term bond fund managed by Schwab's affiliate, Charles Schwab Investment Management. The $18...
SEC Press Release: Municipal Bond Fund
(Jan 2011)
SEC Charges Former Portfolio Managers With Defrauding Utah Municipal Bond Fund
The U.S. Securities and Exchange Commission (SEC) issued a press release today announcing that it had
"charged two former portfolio managers with defrauding a mutual fund that invests primarily in municipal bonds issued by the State of Utah and its county and local authorities."
Young and Albright - co-portfolio managers of the Tax Free Fund for Utah at the time - charged municipal bond issuers over...
FINRA Press Release: Excessive Mark-Ups
(Dec 2010)
FINRA Expels APS Financial, Bars Former President and Former Broker for Targeting an Elderly Investor with Fraudulently Excessive Mark-ups
The Financial Industry Regulatory Authority (FINRA) issued a press release today announcing that
"it has expelled APS Financial Corporation, located in Austin, Texas, barred the firm's former President, George Conwill, and barred Peter Aman, a former broker at the firm, in a scheme which overcharged an elderly investor by $1.2 million."
The...
SEC Press Release: Banc of America Bid Rigging
(Dec 2010)
SEC Charges Banc of America Securities With Fraud in Connection With Improper Bidding Practices Involving Investment of Proceeds of Municipal Securities
The U.S. Securities and Exchange Commission (SEC) issued a press release today announcing that it had
charged Banc of America Securities, LLC (BAS) with securities fraud for its part in an effort to rig bids in connection with the investment of proceeds of municipal securities.
"BAS has agreed to pay over $36 million, together with...
SEC Press Release: Fraud in Forex Trading
(Oct 2010)
SEC Charges Massachusetts-Based Forex Traders and Their Firm With Fraud
The U.S. Securities and Exchange Commission (SEC) issued a press release today announcing that it had
"charged two foreign currency traders and their Boston-based company with operating a fraudulent scheme in which they sent investors misleading account statements while stealing their funds and incurring major trading losses."
The SEC alleges that Karlis and Akyil raised approximately $40 million from...
FINRA Press Release: Reverse Convertibles
(Oct 2010)
FINRA Orders Ferris, Baker Watts to Pay Nearly $700,000 for Inappropriate Sales of Reverse Convertible Notes
The Financial Industry Regulatory Authority (FINRA) issued a press release today announcing that
it has fined the former Ferris, Baker Watts LLC, acquired by RBC Wealth Management, $500,000 for inadequate supervision of sales of reverse convertible notes to retail customers as well as unsuitable sales of reverse convertibles to 57 accounts held by elderly customers who were at...
FINRA Press Release: Illicit Equities Trading Strategy
(Sep 2010)
FINRA Sanctions Trillium Brokerage Services, LLC, Director of Trading, Chief Compliance Officer, and Nine Traders $2.26 Million for Illicit Equities Trading Strategy
The Financial Industry Regulatory Authority (FINRA) issued a press release this week announcing that
it has censured and fined New York-based Trillium Brokerage Services, LLC, $1 million for using an illicit high frequency trading strategy and related supervisory failures. Trillium, through nine proprietary traders,...
FINRA Press Release: Inverse Floating Rate CMOs
(Aug 2010)
FINRA Fines HSBC $375,000 for Unsuitable Sales of Inverse Floating Rate CMOs to Retail Customers and Related Supervisory Failures
The Financial Industry Regulatory Authority (FINRA) issued a press release today announcing that
"it has fined HSBC Securities (USA) Inc. $375,000 for recommending unsuitable sales of inverse floating rate Collateralized Mortgage Obligations (CMOs) to retail customers. HSBC failed to adequately supervise the suitability of the CMO sales and fully explain the...
