fraud Archives - The Industry Spread

SEC Charges Hedge Fund Adviser and Top Executives With Fraud

October 3, 2019

According to the SEC’s complaint, SBB Chief Executive Officer Samuel Barnett founded the firm in 2010 while still in college, raised millions from friends and family members, and invested almost exclusively in structured notes. The complaint alleges that as SBB sought outside investors, Barnett and Chief Operating Officer and Chief Compliance Officer Matthew Aven promised prospective investors that they would use “fair value” when recording investments.

SEC Halts Alleged $125 Million Offering Fraud

September 23, 2019

The Securities and Exchange Commission today announced that it has filed an emergency action and obtained a temporary restraining order and asset freeze against three individuals and three entities in connection with an alleged fraudulent, ongoing international trading program that has placed at risk more than $125 million of investor funds.

CFTC Orders Registrant to Pay $1.25 Million for Fraud, Unauthorized Trading, and Violating Speculative Position Limits in Live Cattle Futures

September 13, 2019

The U.S. Commodity Futures Trading Commission today issued an order filing and simultaneously settling charges against Nathan Harris, a CFTC registrant, of Akron, Iowa, for fraud, unauthorized trading, and violating speculative position limits in live cattle futures contracts.  The order imposes a civil monetary penalty of $1,250,000 and permanent restrictions on Harris’s registration with the CFTC.

Fraser Valley Man Penalized for Committing Fraud

June 16, 2019

A panel of the British Columbia Securities Commission (BCSC) has imposed a $350,000 administrative penalty on Fraser Valley Man William Wade Furman who deceived investors about his status as a registrant, his prior history of success in trading in securities and his use of investor funds.

SEC Announces Enforcement and Investor Education Initiatives to Protect Teachers and Military Service Members

June 8, 2019

The Securities and Exchange Commission today announced two new education initiatives that will build on its ongoing efforts to protect retail investors. The Teachers’ Initiative and the Military Service Members’ Initiative will build on the Commission’s past efforts and focus additional enforcement and investor education resources on behalf of teachers, veterans, and active duty military personnel stationed domestically and abroad.

SEC Charges Investment Adviser With Fraud

June 5, 2019

According to the SEC’s order, Anderson owned and operated River Source Wealth Management, LLC, a now-defunct registered investment adviser in North Carolina.  River Source’s primary revenue stream was customer advisory fees.  Customer agreements provided that those fees would be based on each customer’s assets under management.  The SEC’s order finds, however, that in 2015 and 2016, Anderson overcharged a majority of his clients. 

Jury Rules in SEC’s Favor, Finds Brokerage Firm and Two of Its Executives Liable for Fraud

May 20, 2019

The SEC charged the brokerage firm, Portfolio Advisors Alliance Inc. (PAA), Howard J. Allen, the indirect owner of PAA, and Kerri L. Wasserman, PAA’s president, with fraud and related charges in connection with making material misrepresentations and omissions in American Growth Funding II LLC (AGF II)’s private placement offering. The SEC alleged that AGF II, which raised capital from investors to provide loans to businesses, and its owner, Ralph C. Johnson, promised investors 12 percent annual returns and falsely claimed in offering documents that its financial statements were being audited each year.  The SEC further alleged that PAA, Allen, and Wasserman knew the offering documents were inaccurate yet continued using them to solicit sales of AGF II securities.