Regulatory Violations
This archive displays posts tagged as relevant to violations of rules and regulations government the financial markets and its participants. You may also be interested in the following pages:
March 3, 2022
City National Rochdale, LLC agreed to a civil penalty just over $30 million to resolve SEC allegations that the registered investment adviser failed to disclose to discretionary account clients that it invested their assets in proprietary mutual funds that generated fees for CNR and its affiliates, rather than in competitor funds whose fees may be lower. The government also alleged that CNR failed to fully inform certain prospective customers of fees with respect to its proprietary funds. The disclosure failures resulted in an undisclosed conflict of interest according to the SEC. SECFebruary 23, 2022
The CFTC settled charges against Richard D. Neal and his company Golden Signals, LLC for failing to register as a commodity trading advisor and commodity pool operator. Neal and Golden Signals, LLC will pay over $2.6 million in restitution, disgorgement, and a civil monetary penalty for the fraud perpetrated over a 5-year period beginning in October 2016. They engaged in binary options solicitation and trading fraud via webpages and social media channels, touting “the highest profit percentage ratings in the world.” Additionally, customers lost over $1.2 million through Neal and Golden Signals’ fraudulent solicitations for binary options signal, trainings, and strategy course offerings. CFTCFebruary 14, 2022
BlockFi, Inc. will pay a total of $100 million to resolve SEC and state claims arising from its sale to retail customers of cryptocurrency lending products, including its BlockFi Interest Accounts. Through the “BIAs,” investors lent cryptocurrency assets to BlockFi in exchange for the company’s promise to provide a variable monthly interest payment. The SEC alleged that the BIAs were securities, offered without registration, that BlockFi operated as an unregistered investment company, and made false and misleading statements about risk levels. The total settlement includes a $50 million SEC civil penalty and $50 million to be divided equally between U.S. jurisdictions that are members of North American Securities Administrators Association. SEC; NASAAJanuary 19, 2022
William S. Evans III, who did business as Turning Point Investments, together with his wife Francis Evans, have consented to entry of judgment against them requirement the payment of $17 million as restitution as the disgorgement of $10 million. Evans operated as an unregistered commodity pool operator, and marketed to customers with the promise that he would trade commodity futures on their behalf, making false statements about risks, the likelihood of profits, and his fees. In fact, Evans misappropriated customer funds for his personal use and to pay other participants in a Ponzi-like scheme. CFTCTop Ten SEC and CFTC Recoveries of 2021
Posted 01/7/22
