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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 28 of 91

June 30, 2021

Following its 2020 SEC penalty, Robinhood Financial LLC was ordered to pay $70 million by FINRA -- a $57 million penalty and $12.6 million in restitution and interest to harmed customers -- to resolve charges that the firm provided false and misleading information, improperly authorized customers for options trading without appropriate due diligence, and failed to reasonably supervise the technology it used to provide core broker-dealer services including for the acceptance and execution of customer orders.  FINRA

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

June 30, 2021

Investment advisor Securities America, Inc. will pay a $1.75 million civil penalty to resolve charges that it failed to implement policies and procedures that were reasonably designed to protect client assets from misappropriation.  While affiliated entities to whom SAA had delegated responsibility for surveillance of advisory accounts had received automated alerts about potentially suspicious withdrawals from client accounts, those alerts were ignored and approximately $8 million was misappropriated from SAA advisory accounts.  SEC

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

June 29, 2021

Accountant Steven Brown, who operated a financial consulting and investment company called Alpha Trade Analytics, Inc., has been sentenced to over 4 years in prison and ordered to pay over $3.3 million in restitution for running a Ponzi scheme that affected 48 victims, many of whom were connected to a nonprofit that provided dance and theater arts education to children.  Through his role as an accountant for the nonprofit, Brown received access to high-net-worth individuals, whom he encouraged to invest with Alpha Trade through false promises.  When it came time to pay out investors, Brown used funds from new investors, as well as funds embezzled from the nonprofit.  USAO CDCA

Tagged in: Criminal Proceedings, Financial and Investment Fraud, Ponzi Schemes,

June 29, 2021

A man in Minnesota who allegedly defrauded two dozen investor clients out of $2.3 million has been sentenced to 7 years in prison.  Isaiah Leslie Goodman, a registered investment advisor and owner of Becoming Financial Group, Inc., Becoming Financial Advisory Services L.L.C., and MoneyVerbs, allegedly lied to prospective and existing clients while misappropriating their funds for his own use.  As part of his sentence, Goodman will forfeit some of his ill-gotten gains.  USAO MN

Tagged in: Criminal Proceedings, Financial and Investment Fraud, Misrepresentations,

June 29, 2021

Neovest Inc., a JPMorgan Chase & Co. subsidiary that provides an order and execution management system (OEMS) that facilitates electronic trading, will pay $2.75 million for its failure to register as a broker-dealer. Neovest's OEMS allows customers to route orders for stocks and options to more than 360 customer-selected destination brokers who entered into agreements with Neovest for execution. In exchange for its OEMS services, Neovest received transaction-based compensation, which were sent to J.P. Morgan Securities LLC, a registered broker-dealer, and then transferred to Neovest. SEC

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

June 25, 2021

UK-based global engineering company Amec Foster Wheeler Energy Limited, a subsidiary of John Wood Group plc, has agreed to pay more than $40.7 million in criminal fines, disgorgement, and interest, and enter into a three-year deferred prosecution agreement to settle foreign bribery charges involving a $190 million contract from state-owned Petróleo Brasileiro S.A. (Petrobras) to design a gas-to-chemicals complex in Brazil.  Through employees located in New York and Texas, Amec Foster Wheeler allegedly conspired with others to pay bribes to win the contract, earning at least $12.9 million in profit as a result. The company also reached settlements with the United Kingdom’s Serious Fraud Office and Brazilian authorities, and will receive credits for payments made to those entities. USAO EDNY; DOJ; SEC

Tagged in: Criminal Proceedings, FCPA, Financial and Investment Fraud,

June 24, 2021

A whistleblower whose information and ongoing assistance led to multiple SEC enforcement actions has been awarded more than $1 million.  According to the agency, the whistleblower played a critical role in the enforcement actions by prompting the investigation and saving the agency significant time and resources.  SEC

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

June 24, 2021

Gateway One Lending & Finance, LLC, which originates, securitizes, and services auto loans, agreed to pay $6.5 million in disgorgement, prejudgment interest, and civil penalties to resolve charges that it understated the historic losses of its auto loans and overstated the projected future performance for six auto loan-backed securitizations.  SEC

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

June 22, 2021

Loci Inc., whose InnVenn platform provides intellectual property search services for inventors and others users, will pay $7.6 million to resolve SEC charges arising from its unregistered initial coin offering of "LOCIcoins."  In the course of the ICO, Loci and its CEO John Wise allegedly misrepresented the company’s revenues, number of employees, and InnVenn’s user base. SEC

Tagged in: Cryptocurrency, Financial and Investment Fraud, Misrepresentations, Regulatory Violations, Securities Fraud,

June 21, 2021

The SEC has issued awards totaling nearly $5.3 million to whistleblowers whose information caused the SEC to launch investigations that ultimately resulted in successful enforcement actions.  In the first award, a whistleblower received nearly $4 million for extraordinary assistance, including providing documents, identifying witnesses, and participating in hours of interviews.  In the second award, three whistleblowers received about $1.3 million for providing ongoing assistance that conserved agency time and resources.  SEC

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

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