Archive

January 26, 2015

The CFTC ordered Anthony Lauria and his company, Gold Coast Bullion, Inc. to pay more than $9.6 million to settle charges of engaging in an illegal, off-exchange precious metals scheme and for committing fraud in connection with those illegal transactions.  CFTC

January 21, 2015

A New York federal court has ordered Michael Kardonick, Gary Shapoff, and Atwood & James to pay a penalty of over $2 million and has imposed a permanent trading ban over allegations of Forex options fraud and misappropriation.  CFTC

January 21, 2015

Bharat Adatia and his companies, Lions Wealth Holdings, Lions Wealth Services, and 20/20 Precious Metals have been ordered to pay over $5.3 million in sanctions for an alleged fraudulent precious metals scheme.  CFTC

January 21, 2015

New York Attorney General Eric T. Schneiderman joined the SEC and the office of the Massachusetts Attorney General in announcing a settlement with Standard and Poor’s Financial Services LLC regarding false and misleading statements made by S&P in connection with its rating of certain Commercial Mortgage Backed Securities (CMBS). According to the government, from February 2011 to July 2011, S&P loosened the criteria it applied to rate eight CMBS, failed to disclose this fact to investors, and misled market participants into thinking the ratings for their investments were based on more conservative assumptions than was actually the case. Under the settlement, New York will receive $12M in penalties, Massachussetts will receive $7M in penalties, and the SEC will receive $35M in penalties as well as $7M in disgorgement and interest. The SEC also resolved two other matters related to S&P bringing the total government recovery to nearly $80M. NY

January 21, 2015

New York Attorney General Eric T. Schneiderman announced a settlement with Florida-based Vacation Tours USA, Inc., and its principals Henry J. Armand and Tony J. Armand, over a false advertising scam targeting consumers across New York State. According to the government, the company sent letters to consumers telling them they had won a vacation package, including airfare and lodging, and invited them to attend a seminar at a local hotel but once there were subjected to a sales presentation conducted by a third-party company instead of being given vouchers for free airline tickets and hotel stays. Under the settlement, the company must halt its deceptive, fraudulent, and illegal business practices in New York State, pay restitution to consumers, and pay $22,500 in civil penalties and costs. NY

January 20, 2015

The CFTC settled charges against Singapore-based Olam International, Ltd., which operates a futures trading desk in London, and its subsidiary, Olam Americas, Inc., based in Summit, New Jersey, requiring them to pay a $3 million civil monetary penalty.  CFTC

January 16, 2015

Two payday lending companies, AMG Services, Inc. and MNE Services, Inc., have settled FTC charges that they violated the law by charging consumers undisclosed and inflated fees. Under the proposed settlement the companies will pay $21 million – the largest FTC recovery in a payday lending case – and will waive another $285 million in charges that were assessed but not collected. The FTC noted that “the settlement requires these companies to turn over millions of dollars that they took from financially-distressed consumers, and waive hundreds of millions in other charges.” FTC

January 16, 2015

The CFTC ordered Summit Energy Services, Inc., a Delaware corporation with its principal place of business in Louisville, Kentucky, to pay a $140,000 civil monetary penalty for acting as an unregistered commodity trading advisor.  CFTC

January 16, 2015

Massachusetts Attorney General Martha Coakley announced Bank of America, JP Morgan Chase Bank, Citi, and Wells Fargo Bank agreed to pay $2.7M million and undertake obligations to facilitate the repair of defective property titles, resolving claims they violated Massachusetts foreclosure law and the Massachusetts Consumer Protection Act by illegally foreclosing upon Massachusetts residents’ homes when the banks lacked the legal authority to do so. MA

January 14, 2015

A New Jersey federal court entered an order of default judgment and permanent injunction for over $870,000 against TOTE Fund LLC and MJS Capital Management LLC, two commodity pool operators, and their sole principal Michael J. Siegel of Northfield, New Jersey, for misappropriating funds and other violations.  CFTC