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Financial and Investment Fraud

This archive displays posts tagged as relevant to financial and investment fraud. You may also be interested in the following pages:

Page 12 of 91

July 27, 2022

Three registered broker-dealers have been ordered to pay civil penalties based on SEC findings that each had deficiencies in its programs to prevent customer identity theft, in violation of the SEC’s Identity Theft Red Flags Rule, or Regulation S-ID.  J.P. Morgan Securities LLC will pay $1.2 million, UBS Financial Services Inc. will pay $925,000, and TradeStation Securities, Inc. will pay $425,000.  The SEC found that the broker-dealers’ cybersecurity policies failed to detect identity theft red flags in connection with customer accounts or to incorporate those red flags into their programs, and that the firms failed to adequately train staff, failed to review and update the policies as required, did not include appropriate board oversight, and failed to oversee service provider arrangements.  SEC

Tagged in: Cybersecurity and Data Breaches, Financial and Investment Fraud, Financial Institution Fraud, Regulatory Violations,

July 22, 2022

Vanderpoel family members Neal J. II, Eileen, Ryan, and Neal J. IV will pay $1.88 million in penalties, disgorge their ill-gotten gains, and are barred from performing any loan modification, debt adjustment, or mortgage compliance in New Jersey because of their predatory mortgage adjustment services targeting distressed homeowners. The family violated New Jersey’s Consumer Fraud Act and the Debt Adjustment Act, selling worthless loan modification and other adjustment services to borrowers, and charged excessive upfront fees. The entities used in furtherance of the fraud—Financial Services of America, Financial Processing Services, LLC, Tri-State Financial Relief, LLC, and Mortgage Help and Loan Audits of America, LLC—were also shut down. NJ OAG

Tagged in: Financial and Investment Fraud, Financial Institution Fraud, Housing and Mortgage Fraud, Misrepresentations,

July 18, 2022

Equitable Financial Life Insurance Company has agreed to pay $50 million to settle charges of providing statements to 1.4 million variable annuity investors, which included public school teachers and staff, that failed to list all fees paid during the period.  In addition to the monetary settlement, Equitable has agreed to cease and desist from future violations and revise how it presents fee information.  SEC

Tagged in: Financial and Investment Fraud, Financial Institution Fraud, Misrepresentations, Regulatory Violations,

July 15, 2022

An anonymous whistleblower was awarded $3 million based on SEC findings that the individual, who was solicited to invest in a product, expeditiously contacted the SEC to report misrepresentations regarding the product.  That report prompted the Commission to open an investigation, during which the individual provided additional assistance.  SEC

Tagged in: Financial and Investment Fraud, SEC Whistleblower Reward Program, Securities Fraud,

July 15, 2022

A number of California- and Colorado-based people and their affiliated entities have been ordered to pay over $29 million in total in order to resolve multiple charges of violating CFTC regulations.  A federal judge had found California-based John D. Black, his associates Christopher Mancuso and Joseph Tufo, and his entities Financial Tree, Financial Solution Group, and New Money Advisors—as well as Colorado-based John P. Glenn and his law firm—liable for solicitation fraud in connection with binary options and forex transactions, registration violations, and other charges.  CFTC

Tagged in: Financial and Investment Fraud, Fraud in CFTC-Regulated Markets, Regulatory Violations,

July 11, 2022

Attorney Shimon Rosenfeld was ordered to pay over $7 million in disgorgement and prejudgment interest and will spend 6 months in prison for defrauding real estate investors. For a period of nearly four years, from May 2014 to March 2018, Rosenfeld solicited investors for a pooled real estate investment fund whose profits would be split with the investors. Instead, Rosenfeld misappropriated the funds to trade securities in his personal brokerage account, resulting in a $6 million loss of investor funds. SEC

Tagged in: Financial and Investment Fraud, Ponzi Schemes, Securities Fraud,

June 30, 2022

Interactive Brokers LLC has been ordered to pay over $1 million in disgorgement and civil monetary penalty for its failure to supervise employees’ handling of exchange fees charged to customers.  By failing to ensure that its employees accurately assessed fees, Interactive Brokers overcharged its customers over $710,000.  CFTC

Tagged in: Financial and Investment Fraud, Fraud in CFTC-Regulated Markets, Regulatory Violations,

June 29, 2022

UBS Financial Services Inc. has agreed to pay $25 million in connection with a complex investment strategy that it ran from 2016 to 2017.  Though it marketed and sold YES, or Yield Enhancement Strategy, to some 600 investors, UBS did not adequately inform those investors about possible risks, nor provide its financial advisors with enough training and oversight to counteract those risks.  SEC

Tagged in: Financial and Investment Fraud, Financial Institution Fraud, Misrepresentations, Securities Fraud,

June 28, 2022

In response to SEC charges, audit firm Ernst & Young LLP admitted that its employees cheated on CPA exams and in continuing professional education courses, and that the firm withheld evidence of this misconduct during the SEC’s investigation.  EY agreed to pay a $100 million penalty and undertake extensive remedial measures.  The cheating took place on the ethics component of CPA exams and in courses required to maintain CPA licenses, including ones designed to ensure that accountants can properly evaluate whether clients’ financial statements comply with Generally Accepted Accounting Principles.  SEC

Tagged in: Accounting Fraud, Financial and Investment Fraud, Regulatory Violations,

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